Home Q&A Forum Can a competitor sue me for using a similar business proposal?

Business Contracts

Business Proposal

California

Asked on Jun 23, 2025

Can a competitor sue me for using a similar business proposal?

I am currently in the process of developing a business proposal for a new product in the tech industry, and I recently discovered that a competitor has a similar proposal in the market. I am concerned that if I proceed with my proposal, the competitor may sue me for intellectual property infringement or unfair competition. I would like to know if I am at risk of facing legal consequences for using a business proposal that is similar to a competitor's.

Answers from 1 Lawyer

Answer

Business Contracts

California

Answered 277 days ago

As much as I hate to use the common phrase, "it depends" the best answer to your question is, "it depends." If you are including their proprietary methods or proprietary approaches in your own proposal, that are not merely industry standard (ex: specific financial modeling built for a type of project developed by your competitor) it could be a problem. If you are merely following the same template in your proposal that is industry standard, developed your own bidding template, or otherwise are using your own work and are not relying on your competitor's work for your proposal, you are probably just fine. There are statutes and rules in California surrounding unfair business practices and specific actions to prevent practices such as "theft of trade secrets." If your competitor is just upset or concerned because you are in the same industry and submitting proposals to requests from clients, as long as you are completely above board, you should be fine. There is danger if you are submitting unsolicited proposals to their clients with the intent to poach or interfere with their existing relationships. That kind of business practice could be actionable. Again, without knowing any specifics, this is general business education for bidding and proposals in California, not legal advice. If you're doing business ethically and they just don't like competition, well- that may just be a "them" problem.

Use of the ContractsCounsel Q&A Forum does not create an attorney-client relationship between User and any Lawyer User. The Forum is not a substitute for legal advice from a lawyer but is intended to be educational and to help the user determine if legal services are necessary. The Forum, Content, and communications on the Forum do not constitute legal advice.

Meet some lawyers on our platform

Dolan W.

865 projects on CC

CC verified

View Profile

Daniel R.

309 projects on CC

CC verified

View Profile

Randy M.

20 projects on CC

CC verified

View Profile

Edward B.

73 projects on CC

CC verified

View Profile

Can I include non-disclosure agreements in my business proposal to protect my intellectual property?

I am currently in the process of developing a business proposal for a potential partnership with another company. This partnership involves sharing sensitive information and intellectual property. I want to ensure that my ideas and intellectual property are protected, so I am considering including non-disclosure agreements in the business proposal. However, I am unsure if this is a common practice or if there are any legal considerations I should be aware of. I would like to seek professional advice on whether including non-disclosure agreements in my business proposal is recommended and if there are any specific clauses or language that should be included for maximum protection.

View Darryl S.

5.0 (135)

Darryl S.

Answered Jun 30, 2024

Yes - NDAs are a very common agreement during the business proposal and discussion phase of working together.

Read 1 attorney answer>

Business Contracts

Business Proposal

Massachusetts

Asked on Aug 7, 2025

Can I include a non-compete clause in my business proposal?

I am in the process of creating a business proposal for a potential client, and I am considering including a non-compete clause to protect my business interests. I have invested a significant amount of time, effort, and resources into developing unique strategies and techniques for this project, and I am concerned about the client potentially sharing or using these valuable insights with competitors. I want to know if it is legally permissible to include a non-compete clause in my business proposal and what considerations should be taken into account when drafting such a clause.

View Charles D.

5.0 (1)

Charles D.

Answered Sep 12, 2025

Not sure that the non-compete is the right agreement for this scenario. You might want to consider an NCND agreement. This is a Non-Circumvent Non-Disclosure Agreement. Without knowing more about the relationship between the parties, I would look first to this type of document.

Read 1 attorney answer>

Business Contracts

Settlement Agreement

California

Asked on Sep 10, 2021

When does a non-disparagement clause end?

8.2 Continuing Obligations of Contractor. The provisions of Sections 1.3, 1.4, 2, 4, 5, 6, 7.2, and 8 shall survive expiration or termination of this Agreement for any reason. 9. Additional Provisions. 9.1 Non-Disparagement. Both Parties agree that they shall not, directly or indirectly, engage in any conduct or make any statement, whether in commercial or noncommercial speech, disparaging or criticizing in any way of the other Party, or any of its affiliates or clients or any of their respective owners, officers, employees or agents or services offered by any of them, nor shall either Party engage in any other conduct or make any other statement whether in writing, verbally or on-line, that could be reasonably expected to impair the goodwill or reputation of the other Party or any of its affiliates or clients. 9.2 Non-Solicitation. During the term of this Agreement, and for a period of twelve (12) months following termination of this Agreement, Contractor shall not, without the prior written consent of Company, directly or indirectly solicit for employment, employ or otherwise engage the services of employees or individual consultants of the Company. This subsection shall not apply to general solicitations, public job postings, or newspaper advertisements for employment opportunities.

View JOSEPH L.

4.8 (16)

JOSEPH L.

Answered Sep 28, 2021

Since Section 9, Non-Disparagement, is not listed as one of the sections that "survives termination of this Agreement" it is arguable that once the Agreement terminates pursuant to the termination clause of the Agreement then the Non-Disparagement restriction will terminate as well. If no term is stated in a written agreement then presumably the restriction on disparaging that the parties agree to is not terminated, since the contract did not specify one, and therefore is a continuing obligation of both parties. Damages is another issue though. If the contract does not specify damages if one party breaches the agreement by disparaging the other, then what are the damages? Courts hate to guess at damages so the non-breaching party would have to prove "actual damages". If the non-breaching party cannot prove a loss of business or a lost contract with a client as a "direct result" of the disparaging comment, then the court will not guess at damages so the most the non-breaching party may hope to gain is an injunction against future disparaging comments and an order that such comments be removed from the internet, if that is where the comments appear.

Read 1 attorney answer>

Business Contracts

Software License

California

Asked on Sep 14, 2021

What invalidates a perpetual software license?

What would invalidate a perpetual S/W license under a user agreement that was purchased over 20 years by the customer under a services contract for a unique legacy test system still in use? Would the customer be required to purchase an annual subscription S/W license under a new contract when they are not receiving any additional enhancements, features or benefits for legacy S/W maintenance, training or upgrades since it in stalled on legacy Linux operating system computer workstations? This legacy S/W still operates under it intended use and functions correctly as advertised. Replacing the legacy S/W with new subscription S/W license would also force the customer to purchase new computer H/W at an additional cost and impact other legacy H/W and S/W that interfaces the legacy perpetual S/W. This would create additional S/W develop to test and modify existing code to validate the change would still meet it original intent and test capability. I am curious if this proposal would violate any federal acquisition or ethics rules in attempting to force the customer to pay for a S/W license that are not required to perform its current function providing no additional value because the company has changed their business rules to follow the current trend to charge customers for subscription based S/W license? Their justification is they are charging another customer an annual subscription S/W license so we should also be required to go along with their new business rules.

View Octavia P.

5.0 (2)

Octavia P.

Answered Sep 24, 2021

A perpetual license generally authorizes use of a specific version of a software program indefinitely with the payment of a single upfront fee. However, software companies usually limit supplemental support and updates to a specific time (i.e., three years) and when that period ends, gives the customer the option to use the current version with or without paid support. Consequently, if there is a perpetual license in place your company should be free to continue to use your particular version of the software indefinitely without the requirement to move to a subscription-based plan unless your company requires tech support or any type of update/upgrade to continue to use the software which does not seem to be the case here. Nevertheless, the original user agreement and any ancillary agreements should be reviewed to determine factors such as the actual type of license and the powers/rights of the software vendor and your company to terminate or invalidate the license. If you would like a legal review of the user agreement/services contract you can post a contract review project on this platform, based on your question, to receive and compare multiple proposals from licensed attorneys who are registered and verified. Once you receive a response from an attorney you will be able to correspond through the platform to help with your decision to hire that attorney for the project.

Read 1 attorney answer>

Business Contracts

Non-Competition Agreement

California

Asked on Jan 27, 2022

My previous job had a secret non-compete closure

I left my previous job because I did not appreciate how I was treated when returning from maternity leave. I stepped down because with a colic infant and a national staffing shortage I couldn’t handle the work load, right after I stepped down they changed the schedule to minimize stress for the current programs director. They also allowed employees to unprofessional to me, when I returned the employee I trained and managed for years lectured me how todo my current position and asked if I had any disabilities or injuries because I had a C-section. This company for years treated me differently then other employees even though I ran and managed profitable programs. Before I left I asked Premier Aquatics that I wanted to be placed in a position similar to the one I had before, and they didn’t have a position for me. I decided to resign and I want to work for another company near their location. I’ve known in the past that they do come after employees with a non-compete and they never offered me anything for the non-compete.

View JOSEPH L.

4.8 (16)

JOSEPH L.

Answered Feb 8, 2022

Generally speaking non-competes are not enforceable in California against employees or independent contractors. The situation may be different depending on all the facts if you were an equity owner or partner in the company. Also, when a business is sold, a reasonable non-compete is enforceable against the former owner(s) since they were paid as part of the purchase price for non-competition representations. California has long had a public policy against non-compete clauses against employees and independent contractors since it affects their ability to earn a living. I am not sure what information you have about them "coming after other employees". Note: I don't have all the facts, and this answer is for informational and research purposes only.

Read 1 attorney answer>

Freelancers & Creators

Small Businesses

Startups

All of the Essentials:

Extra Help When Needed:

Basic LLC Formation

Premium LLC Formation

Can a competitor sue me for using a similar business proposal?

Answers from 1 Lawyer

Dawn K.

Dolan W.

Daniel R.

Randy M.

Edward B.

People Also Asked

Can I include non-disclosure agreements in my business proposal to protect my intellectual property?

Darryl S.

Can I include a non-compete clause in my business proposal?

Charles D.

When does a non-disparagement clause end?

JOSEPH L.

What invalidates a perpetual software license?

Octavia P.

My previous job had a secret non-compete closure

JOSEPH L.

Ask a Question

California Business Contracts lawyers by city

Find lawyers and attorneys by city