No Microscope Needed to See Why This Non-Compete Is Unenforceable

Nion, an electron microscope manufacturer, contracted with Gatan, a spectrometer manufacturer, to use Gatan’s spectrometers in Nion’s microscopes. The contract contained both confidentiality and non-compete clauses. When Gatan learned that Nion had sold other parties microscopes that used Nion’s own spectrometer, Gatan sued, claiming that Nion had breached the non-compete (but not the confidentiality) provision of the contract. In ruling on Nion’s motion to dismiss, the court found that the non-competition provision was void and that Gatan’s claim that the provision was necessary to protect its trade secrets was without merit. Gatan, Inc. v. Nion Company, 2016 WL 1243477 (N.D. Cal. Mar. 30, 2016).

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