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B2B Non Compete Agreement

B2B Non Compete Agreement Template for Austria

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Key Requirements PROMPT example:

B2B Non Compete Agreement

"I need a B2B Non-Compete Agreement under Austrian law for a software development company entering into a strategic partnership with a technology consultant, with a 2-year restriction period starting from March 2025 and covering the DACH region."

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Document background
The B2B Non-Compete Agreement is essential in business transactions where companies need to protect their legitimate interests from competitive activities. This document is specifically tailored for use under Austrian law and is commonly employed in business sales, joint ventures, strategic partnerships, or other commercial relationships where one business entity needs to restrict another from competing in specific markets or territories. The agreement must carefully balance business protection with competition law compliance, incorporating both Austrian legal requirements and EU competition regulations. It typically includes detailed provisions on scope, duration, and territory of restrictions, along with enforcement mechanisms and consideration. This type of agreement is particularly crucial in scenarios involving access to sensitive business information, strategic partnerships, or business transitions.
Suggested Sections

1. Parties: Identification of the contracting businesses, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, nature of the business relationship, and legitimate business interests being protected

3. Definitions: Definitions of key terms including 'Confidential Information', 'Competing Business', 'Territory', and other relevant terms

4. Scope of Non-Compete: Detailed description of prohibited competitive activities and specific market segments covered

5. Duration and Territory: Time period of the non-compete obligation and geographic scope, ensuring compliance with reasonable restriction requirements

6. Legitimate Business Interests: Clear articulation of the business interests being protected to support enforceability

7. Consideration: The business benefit or compensation provided in exchange for the non-compete obligations

8. Compliance with Competition Law: Explicit acknowledgment of and compliance with Austrian and EU competition law requirements

9. Breach and Remedies: Consequences of breach and available remedies, including any liquidated damages

10. Governing Law and Jurisdiction: Specification of Austrian law as governing law and designation of competent courts

Optional Sections

1. Related Companies: Include when the non-compete should extend to affiliated companies or subsidiaries

2. Non-Solicitation: Additional restrictions on soliciting employees, customers, or suppliers, if relevant

3. Exceptions: Specific carve-outs or permitted activities, if any exceptions to the non-compete are agreed

4. Step-Down Provisions: Severability clauses with alternative scope/duration/territory provisions to maintain enforceability if primary provisions are found too broad

5. Post-Termination Obligations: Specific obligations that continue after the termination of the main business relationship

6. Monitoring and Reporting: Procedures for monitoring compliance, if specific oversight is required

Suggested Schedules

1. Schedule 1 - Restricted Activities: Detailed list of specific activities, products, or services covered by the non-compete

2. Schedule 2 - Territory Map: Geographic representation of the restricted territory

3. Schedule 3 - Competing Businesses: List of specific competitors or competing business types covered by the agreement

4. Schedule 4 - Consideration Details: Details of any financial or business consideration provided in exchange for the non-compete

5. Appendix A - Compliance Checklist: Checklist ensuring compliance with Austrian and EU competition law requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Affiliate
Agreement
Business Day
Competing Business
Competition
Confidential Information
Direct Competition
Effective Date
Group Company
Indirect Competition
Intellectual Property Rights
Know-How
Market Segment
Non-Compete Period
Permitted Activities
Protected Business
Restricted Activities
Restricted Products
Restricted Services
Restricted Territory
Strategic Information
Subsidiary
Term
Territory
Trade Secrets
Related Undertaking
Business Relationship
Commercial Activities
Material Interest
Substantial Interest
Commercial Advantage
Competitive Position
Market Share
Business Opportunities
Consideration
Relevant Industries

Technology

Manufacturing

Professional Services

Pharmaceuticals

Biotechnology

Financial Services

Software Development

Consulting

Industrial Engineering

Research and Development

Distribution and Logistics

Healthcare

Telecommunications

Energy

Consumer Goods

Relevant Teams

Legal

Corporate Development

Compliance

Executive Leadership

Business Development

Commercial Operations

Strategy

Mergers and Acquisitions

Partnerships

Risk Management

Relevant Roles

Chief Executive Officer

Chief Legal Officer

General Counsel

Legal Director

Commercial Director

Business Development Manager

Chief Operating Officer

Compliance Officer

Contract Manager

Corporate Lawyer

Head of Mergers and Acquisitions

Partnership Manager

Chief Strategy Officer

Head of Business Development

Legal Counsel

Industries
Austrian Federal Competition Act (Kartellgesetz): Regulates competition law in Austria, including provisions on vertical agreements and restrictions between businesses. Essential for ensuring the non-compete clauses don't violate competition law.
Austrian Civil Code (ABGB): Contains fundamental contract law principles including formation, validity, and enforcement of contracts. Relevant for the basic contractual framework of the non-compete agreement.
Austrian Commercial Code (UGB): Governs commercial relationships and transactions between businesses, including provisions on commercial contracts and business practices.
EU Competition Law - Article 101 TFEU: Prohibits agreements that may affect trade between EU Member States and prevent, restrict or distort competition within the internal market. Crucial for ensuring compliance with EU-wide competition rules.
Austrian Supreme Court Decisions on Non-Compete Clauses: Case law establishing principles for reasonable restrictions in terms of duration, geographic scope, and subject matter of non-compete agreements.
EU Block Exemption Regulation (Vertical Agreements): Provides safe harbor for certain vertical agreements, including non-compete obligations, setting maximum durations and conditions for exemption from competition law scrutiny.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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