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Starting my own business in same domain can it be a problem


16-Jan-2023 (In Startup Law)
I have started my business in the same domain as my previous company. Will it create a problem as my working model is almost same as there's. It was stated in my offer letter that we can't use this knowledge for another 5 years for our personal profit
Answers (3)

Answer #1
540 votes
If they hold IPR rights over the business module and if there is an agreement in between you and your previous employer to not to compete each other for a certain period of time then definitely you are in breach of the agreements which is there at its place in between you and the company. In that case, they have full rights to come and stop you from doing that business and to further sue you for the damages for the loss of business which may have happened due to you entering into the business sooner than allowed.
Answer #2
846 votes
the offer letter can be modified. but more importantly, what you need to look at is the articles of the previous company and whether the directors and shareholders of the previous company will have any problems. usually, one cannot undertake such competing business.
Answer #3
753 votes
Yes.. your use of your previous employer's domain name could amount to trademark infringement and thus a court action against you.

Additionally you foraying into a similar business as your previous employer could again be an issue depending on what your post employment termination obligations are including the obligation to not use their knowledge for a period of 5 years..

There subject to a thorough review of your employment agreement your use of a similar domain name and foray into a similar business could amount to a statutory and contractual infringement.

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