2
3
4
Plaintiff,
8
9
10
vs.
11
Defendants.
12
For its answer to the Complaint filed by Plaintiff Nike (Nike), Defendants Denis
13
Dekovic, Marc Dolce, and Mark Miner (Defendants) admit, deny, and allege as follows:
14
I.
Introduction
15
1.
16
17
18
19
20
21
22
23
24
25
26
Page
Marc Dolce, and Mark Miner (collectively the Designers) were three of Nikes top
footwear designers, responsible for some of Nikes most successful footwear launches over
the last several years. The Designers independently decided that the Nike corporate culture
was stifling their creativity. And they, along with many of their design co-workers, were
alarmed about the culture of distrust and intimidation that permeates the relationships
between Nike executives and Nike Design creatives. The Designers decided that they
wanted to leave Nike to create an independent studio, to be hired by companies to provide
artistic direction across product lines. They discussed branching out to many product types,
including furniture, transportation, household items, fashion, apparel and sneakers. Nothing
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about their idea for an independent studio relies on any confidential information of Nikes.
Unlike Nikes design Kitchen, which is steeped in Nike corporate culture and politics, the
Designers design studio concept is focused on interaction with the consuming public,
without a stifling bureaucratic overlay. The Designers are not interested in and will not use
old Nike designs or old Nike ideas in their new venture. To the extent that any of the
Designers have old files or pictures that Nike contends are trade secrets, they do not want to
keep them and have agreed to permanently delete them. None of the Designers has ever
passed any trade secret information to adidas or any other competitor, and they will not ever
do so.
10
2.
11
Paragraph 2 appears to contain partial quotes taken out of context from a document
12
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
13
itself and until the Designers receive a copy of the quoted document, they neither admit nor
14
deny this portion of the allegation. To the extent any document was obtained improperly or
15
contains privileged communications, the Designers will move to strike. The Designers deny
16
the remainder of the allegations in this paragraph. Answering further, and as explained more
17
fully in the counterclaims, this lawsuit is based on Nikes breathtaking breach of the
18
Designers personal privacy. Although Nike claims to permit non-business use of the
19
electronic communications systems, Nike monitored, read, copied and distributed its
20
employees personal communications with friends and family. Answering further, the
21
Designers popularity on social media is not measured by numbers of followers, but by their
22
followers participation and the vibrancy of their community. By that measure, the
23
Designers are among the most popular designers on social media. Nike, on the other hand,
24
recently had over a quarter-million fake followers removed from its Instagram account.
25
http://64px.com/instagram/ When the Designers pitched their design studio idea to adidas,
26
the parties found that their ideas were closely aligned, and agreed that the Designers could, if
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they decided to leave Nike, create a design studio within adidas that would free them and
other adidas designers to have influence over brand direction, without strict product-line
3.
With respect to paragraph 3, the Designers admit that they signed agreements that
Nike has identified as non-competition agreements with Nike, the terms of which speak for
themselves. Paragraph 3 also appears to contain partial quotes taken out of context from a
document that Nike did not identify or provide to the Designers. The document, if it exists,
speaks for itself and until the Designers receive a copy of the quoted document, the
10
Designers neither admit nor deny this portion of the allegation. To the extent any document
11
was obtained improperly or contains privileged communications, the Designers will move to
12
strike. Except as expressly admitted, the Designers deny the remainder of the allegations in
13
this paragraph.
14
4.
15
Paragraphs 4-5 appear to contain partial quotes taken out of context from a document
16
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
17
itself and until the Designers receive a copy of the quoted document, they neither admit nor
18
deny this portion of the allegation. To the extent any document was obtained improperly or
19
contains privileged communications, the Designers will move to strike. The Designers deny
20
21
5.
22
23
actions. Defendant Dekovic admits that on or about September 16, 2014, while he was still
24
employed by Nike, an Apple technician copied data from Dekovics Nike-issued laptop to an
25
external hard drive because his laptop had been damaged for approximately two weeks, and
26
Nike was unable to fix his laptop despite Dekovics request to Nike for help. Dekovic also
Page
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has since returned his damaged Nike-issued laptop to Nike and has returned an external hard
drive containing Nike information from his damaged Nike-issued laptop to Nike. In
addition, Dekovic admits that he has submitted his other electronic devices to an independent
forensic examiner and intends to return or delete Nike information from those electronic
confidential, personal, or financial information and photos from his Nike-issued MacBook
before returning it to Nike. Defendants Dolce and Miner admit that they restored their
iPhones to factory default settings before returning them to Nike. The Designers actions
10
11
Paragraph 6 also appears to contain a partial quote taken out of context from a
12
document that Nike did not identify or provide to the Designers. The document, if it exists,
13
speaks for itself and until the Designers receive a copy of the quoted document, they neither
14
admit nor deny this portion of the allegation. To the extent any document was obtained
15
16
Except as expressly admitted, the Designers deny the remainder of the allegations in this
17
paragraph.
18
6.
19
With respect to paragraph 7, the Designers admit that they posted a message which
20
said GRATEFUL for the past EXCITED for the future 3 brothers 3 dreamers 3 stripes
21
#TeamAdidas 2015 with a picture of themselves. The Designers deny Nikes false
22
characterization of this quote. Furthermore, Nike has taken another partial quote out of
23
context from a document that Nike did not identify or provide to the Designers, so the
24
Designers neither admit nor deny that portion of the allegation. To the extent any document
25
was obtained improperly or contains privileged communications, the Designers will move to
26
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strike. Except as expressly admitted, the Designers deny the remainder of the allegations in
this paragraph.
7.
Paragraphs 8-9 appear to contain partial quotes taken out of context from a document
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
itself and until the Designers receive a copy of the quoted document, the Designers neither
admit nor deny this portion of the allegation. To the extent any document was obtained
improperly or contains privileged communications, the Designers will move to strike. The
10
8.
11
12
II.
Jurisdiction and Venue
13
9.
14
15
16
required.
17
III.
Parties
18
10.
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20
11.
21
22
12.
23
24
13.
25
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IV.
Factual Background
2
14.
4
5
7
8
9
10
Director and Senior Design Director for Nikes Global Football. Defendant Dekovic admits
that he had design and leadership responsibilities at Nike. Except as expressly admitted, the
Designers deny the remainder of the allegations in paragraph 23.
16.
11
Defendant Dolce admits that he worked as a Senior Designer in Nikes Active Life
12
13
14
15
16
Division, as Design Director of Nike Sportwear, as Design Collections Lead for Nike
Sportswear, and as a lead product designer. Defendant Dolce admits that he had design and
leadership responsibilities at Nike. Except as expressly admitted, the Designers deny the
remainder of the allegations in paragraph 24.
17.
17
18
19
20
21
Womens Training and as a Senior Footwear Designer of Nike Running. Miner admits that
he had design responsibilities at Nike. Except as expressly admitted, the Designers deny the
remainder of the allegations in paragraph 25.
18.
22
23
19.
24
With respect to paragraphs 28-30, the Designers admit that they entered into non-
25
26
Page
competition agreements with Nike, the terms of which speak for themselves. To the extent
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that paragraphs 28-30 require a responsive pleading, the Designers deny the allegations in
those paragraphs.
20.
With respect to paragraph 31, the Designers admit that they entered into an employee
invention and secrecy agreement with Nike, the terms of which speak for themselves. To the
extent that paragraph 31 requires a responsive pleading, the Designers deny the allegations in
that paragraph.
21.
10
22.
11
12
that Nike did not identify or provide to the Designers. Until the Designers receive a copy of
13
the document, the Designers neither admit nor deny this portion of the allegation. To the
14
extent any document was obtained improperly or contains privileged communications, the
15
Designers will move to strike. Defendants deny the remainder of the allegations in this
16
paragraph.
17
23.
18
Paragraph 35 appears to contain partial quotes taken out of context from a document
19
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
20
itself and until the Designers receive a copy of the quoted document, the Designers neither
21
admit nor deny this portion of the allegation. To the extent any document was obtained
22
23
24
///
25
///
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///
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24.
25.
Paragraph 39 appears to contain partial quotes taken out of context from a document
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
itself and until the Designers receive a copy of the quoted document, the Designers neither
admit nor deny this portion of the allegation. To the extent any document was obtained
10
11
26.
12
Paragraphs 41-45 appear to contain partial quotes taken out of context from a
13
document that Nike did not identify or provide to the Designers. The document, if it exists,
14
speaks for itself and until the Designers receive a copy of the quoted document, the
15
Designers neither admit nor deny this portion of the allegation. To the extent any document
16
was obtained improperly or contains privileged communications, the Designers will move to
17
18
27.
19
20
28.
21
Paragraphs 47-51 appear to contain partial quotes taken out of context from a
22
document that Nike did not identify or provide to the Designers. The document, if it exists,
23
speaks for itself and until the Designers receive a copy of the quoted document, the
24
Designers neither admit nor deny this portion of the allegation. To the extent any document
25
was obtained improperly or contains privileged communications, the Designers will move to
26
strike. With respect to paragraph 49, defendant Dekovic admits that he met with his friend
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Brian Foresta many times over many years, including in June 2014. Except as expressly
admitted, the Designers deny the remainder of the allegations in these paragraphs.
29.
With respect to paragraph 52, the Designers admit that they consulted with legal
counsel. Defendants neither admit nor deny portions of the allegations protected by the
attorney-client privilege, specifically any information exchanged between the Designers and
legal counsel or between the Designers regarding the legal advice of counsel. Furthermore,
paragraph 52 appears to contain partial quotes taken out of context from a document that
Nike did not identify or provide to the Designers. The document, if it exists, speaks for itself
10
and until the Designers receive a copy of the quoted document, the Designers neither admit
11
nor deny this portion of the allegation. To the extent any document was obtained improperly
12
or contains privileged communications, the Designers will move to strike. Defendants deny
13
14
30.
15
Paragraphs 53-55 appear to contain partial quotes taken out of context from a
16
document that Nike did not identify or provide to the Designers. The document, if it exists,
17
speaks for itself and until the Designers receive a copy of the quoted document, the
18
Designers neither admit nor deny this portion of the allegation. To the extent any document
19
was obtained improperly or contains privileged communications, the Designers will move to
20
strike. Defendants admit that they met with Brian Foresta, Eric Liedtke, and Paul Gaudio.
21
Except as expressly admitted, the Designers deny the remainder of the allegations in these
22
paragraphs.
23
31.
24
25
///
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///
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32.
Paragraph 57 appears to contain partial quotes taken out of context from a document
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
itself and until the Designers receive a copy of the quoted document, the Designers neither
admit nor deny this portion of the allegation. To the extent any document was obtained
33.
10
34.
11
Paragraph 59 appears to contain a partial quote taken out of context from a document
12
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
13
itself and until the Designers receive a copy of the quoted document, the Designers neither
14
admit nor deny this portion of the allegation. To the extent any document was obtained
15
16
17
35.
18
19
36.
20
Paragraphs 61-63 appear to contain partial quotes taken out of context from a
21
document that Nike did not identify or provide to the Designers. The document, if it exists,
22
speaks for itself and until the Designers receive a copy of the quoted document, the
23
Designers neither admit nor deny this portion of the allegation. To the extent any document
24
was obtained improperly or contains privileged communications, the Designers will move to
25
26
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37.
Defendant Dekovic admits that his Nike laptop was damage and that Nike was unwilling to
assist him to repair it or restore or retrieve the data. Dekovic further admits that a purported
38.
39.
Paragraph 68 appears to contain partial quotes taken out of context from a document
10
that Nike did not identify or provide to the Designers. The document, if it exists, speaks for
11
itself and until the Designers receive a copy of the quoted document, the Designers neither
12
admit nor deny this portion of the allegation. To the extent any document was obtained
13
14
15
40.
16
17
41.
18
Paragraphs 71-74 appear to contain partial quotes taken out of context from a
19
document that Nike did not identify or provide to the Designers. The document, if it exists,
20
speaks for itself and until the Designers receive a copy of the quoted document, the
21
Designers neither admit nor deny this portion of the allegation. To the extent any document
22
was obtained improperly or contains privileged communications, the Designers will move to
23
24
42.
25
26
Page
With respect to paragraph 75, Defendants admit that they have posted a message
which said GRATEFUL for the past EXCITED for the future 3 brothers 3 dreamers 3
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stripes #TeamAdidas 2015 with a picture of themselves. Defendants deny the remainder of
43.
44.
Paragraphs 78-79 appear to contain partial quotes taken out of context from a
document that Nike did not identify or provide to the Designers. The document, if it exists,
speaks for itself and until the Designers receive a copy of the quoted document, the
Designers neither admit nor deny this portion of the allegation. To the extent any document
10
was obtained improperly or contains privileged communications, the Designers will move to
11
12
45.
13
14
46.
15
Paragraphs 81-83 appear to contain partial quotes taken out of context from a
16
document that Nike did not identify or provide to the Designers. The document, if it exists,
17
speaks for itself and until the Designers receive a copy of the quoted document, the
18
Designers neither admit nor deny this portion of the allegation. To the extent any document
19
was obtained improperly or contains privileged communications, the Designers will move to
20
21
47.
22
23
24
25
48.
26
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49.
With respect to paragraphs 86-117, the Designers admit that they signed
noncompetition agreements and employee invention and secrecy agreements with Nike, the
terms of which speak for themselves. Defendants also admit that Nike has paid them each 50
percent of their Nike salaries during the applicable non-compete period. Defendants deny
50.
10
51.
11
With respect to paragraph 119, the Designers admit that they signed noncompetition
12
agreements and employee invention and secrecy agreements with Nike, the terms of which
13
speak for themselves. To the extent this paragraph states a legal conclusion, no response is
14
necessary. To the extent a response is necessary, the Designers deny the allegations in
15
paragraph 119.
16
52.
17
18
19
53.
20
21
54.
22
To the extent that paragraph 126 states a legal conclusion, no response is necessary.
23
To the extent a response is necessary, the Designers deny the allegations in paragraph 126.
24
55.
25
26
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56.
57.
To the extent that paragraphs 133 - 135 state legal conclusions, no response is
necessary. To the extent a response is necessary, the Designers deny the allegations in
paragraphs 133-135.
58.
10
11
59.
12
13
60.
14
To the extent that paragraph 141 states a legal conclusion, no response is necessary.
15
To the extent a response is necessary, the Designers deny the allegations in paragraph 141.
16
61.
17
18
19
62.
20
21
63.
22
23
24
64.
25
26
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65.
To the extent that paragraph 150 states a legal conclusion, no response is necessary.
To the extent a response is necessary, the Designers deny the allegations in paragraph 150.
66.
67.
68.
10
11
69.
12
13
With respect to paragraph 167, the Designers deny that its claims meet the standards
required to plead punitive damages.
14
70.
15
16
Defendants deny each and every allegation in the Complaint except as specifically
alleged above.
17
I.
Defenses
18
19
20
21
the burden or pleading or proof, which burden Defendants assert is on the Plaintiff,
Defendants allege as follows:
FIRST DEFENSE
22
23
71.
24
25
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Page
Complaint and each and every cause of action within it fails to state ultimate facts sufficient
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SECOND DEFENSE
72.
seventh claim for relief is preempted by the Oregon Trade Secrets Act, ORS 646.461-
646.475.
THIRD DEFENSE
(Contractual Invalidity)
10
73.
11
12
Covenant Not to Compete and Non-Disclosure Agreement and each Employee Invention and
13
14
15
FOURTH DEFENSE
16
(Estoppel/Waiver/Permission/Ratification)
17
74.
18
19
Any alleged wrongful conduct by the Designers, if true, was legally permitted on the
grounds of estoppel, waiver, permission and/or ratification. In particular, Plaintiff:
20
21
A.
22
23
B.
designs;
24
C.
25
encouraging and establishing a culture of disloyalty and mobility in the design community,
26
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D.
employees;
E.
from Defendants electronic devices that which plaintiff now claims to be protected
7
8
F.
unlawfully possess.
FIFTH DEFENSE
10
11
75.
12
Plaintiffs claims are barred in whole or in party by the doctrines of unclean hands
13
and in pari delicto. In particular, and as alleged herein on information and belief, Plaintiffs
14
claims rely on records it obtained unlawfully, and it cannot therefore obtain the equitable or
15
16
I.
Counterclaims
17
FIRST COUNTERCLAIM
18
19
76.
20
The Stored Communications Act, 18 U.S.C. 2701, imposes liability upon any
21
22
23
24
25
26
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77.
through which an electronic communication service is provided in its efforts to obtain private
information formerly stored on Defendants laptops and smart phones. These facilities
include, but are not limited to, the facilities, servers, and networks used by iCloud,
78.
8
9
10
11
79.
12
13
Plaintiffs access was obtained without Defendants authorization and in excess of the
scope of any authorization associated with Defendants employment by Plaintiff.
14
80.
15
As a direct and proximate result of Plaintiffs breach, the full extent of which is still
16
unknown, Defendants have suffered actual damages in an amount to be proven at trial, but
17
not less than the sum of $1,000, as provided by statute. 18 U.S.C. 2707.
18
81.
19
20
diligence and was willful and intentional. Accordingly, Defendants are entitled to punitive
21
damages and intend to move pursuant to ORS 31.725 and 18 U.S.C. 2707(c) to add a claim
22
for punitive damages against Plaintiff for its willful and intentional violation of the Stored
23
Communications Act.
24
///
25
///
26
///
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SECOND COUNTERCLAIM
82.
user name and password, password or other means of authentication that provides access to a
personal social media account. ORS 659A.330(1)(a). An employer is not liable for access
to social media accounts received inadvertently, but the employer may not use the
10
ORS 659A.330(6).
11
83.
12
13
complaint, unlawfully requires employees to grant Plaintiff access to their social media
14
accounts, by reserving to Plaintiff the right to access the electronic communication systems
15
and monitor data and messages within them, and to read, reject or remove any message,
16
including attachments, composed, sent or received, at any time for any reason.
17
84.
18
19
to access personal email and social media accounts, all of which satisfy the statutory
20
21
85.
22
23
using the account authentication data stored and/or programmed on Defendants electronic
24
devices, in spite of reasonable measures taken by Defendants to protect said personal social
25
26
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86.
To the extent Plaintiff purports to have accessed the accounts by inadvertence, rather
than by compulsion, Plaintiff nevertheless violated its statutory obligation not to use the
personal social media account data accessed through Defendants devices by repeatedly
87.
unauthorized access to Defendants social media accounts, the full extent of which remains
10
THIRD COUNTERCLAIM
11
12
88.
13
14
platforms, and messaging applications, pertained to Defendants private affairs and concerns.
15
89.
16
17
Defendants protected their social media accounts with passwords and authentication
methods sufficient to establish a reasonable expectation of privacy in those accounts.
18
90.
19
20
21
91.
22
23
92.
24
25
affairs, Defendants have suffered offense and anguish, resulting in damages in an amount to
26
be proven at trial.
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FOURTH COUNTERCLAIM
93.
4
Plaintiffs trade secrets claims are meritless and have been made entirely without any
5
6
7
8
9
basis in fact or law. Plaintiff knows, or should reasonably know, that the Defendants have
not disclosed and do not intend to disclose or misappropriate any of Plaintiffs trade secrets.
The Complaint fails to allege a single instance of disclosure or misappropriation of a
protected trade secret or any expression of intent to do so.
94.
10
Plaintiffs trade secret claims also have an improper purpose. The Complaint was
11
12
13
14
filed as part of a publicity stunt, the purpose of which was to disrupt Defendants and their
future employer and to chill other Nike employees from considering leaving Nike, lest they
too be sued.
95.
15
Due to Plaintiffs bad faith in filing and maintaining trade secrets claims, Defendants
16
17
18
are entitled to reasonable attorney fees pursuant to either or both ORS 646.467(1) and ORS
20.105.
FIFTH COUNTERCLAIM
19
(Declaratory Relief ORS 28.020-28.030; ORS 28.080; ORS 653.295)
20
96.
21
Nikes Covenant Not to Compete agreements with the Designers are unenforceable
22
23
because they are overreaching and do not protect any legitimate interest of Nike.
97.
24
25
26
Page
clauses which state: During EMPLOYEEs employment by NIKE, under the terms of any
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employment contract or otherwise, and for 1 year thereafter, (the Restriction Period),
EMPLOYEE will not directly or indirectly, own, manage, control, or participate in the
ownership, management or control of, or be employed by, consult for, or be connected in any
manner with, any business engaged anywhere in the world in the athletic footwear, athletic
98.
8
9
The Designers signed additional employee invention and secrecy agreements, and
their noncompetition agreements contained clauses including Return of Protected
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provisions provide more than adequate protection of any legitimate interests. The
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for unlawfully stifling fair competition and crippling the Designers ability to obtain
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employment elsewhere.
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99.
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100.
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misappropriation of trade secrets is not a legitimate interest or concern here. Design skills,
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concepts, visions, and creative ability are not trade secrets. The more technical
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confidential information alleged as trade secrets is actually already prevalent in the industry,
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in the Designers industry, competitors do not benefit from the use of anothers alleged
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trade secrets. The use of a competitors trade secrets in this industry would be the
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antithesis of a designers creative mission to develop new, fresh, innovative concepts. The
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Designers and adidas would not benefit from copying Nikes product lines, product launches,
or related information. Nike cannot allege or prove that the Designers inevitably used or will
101.
The overbroad scope and vagueness render the Competition Restriction clauses
employees cannot be connected in any manner with, any business engaged anywhere in the
electronics/technology and sports accessories business. This provision far exceeds any
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legitimate restrictive covenant permissible in Oregon and if enforced literally would produce
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oppressive results, including making it virtually impossible for a Nike employee to seek
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future employment with a competitor. This violates both the public interest and specifically
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102.
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The practical effect of this clause is to handcuff employees to Nike, preventing them
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from working in the athletic industry. Nike is seeking to apply it to the Designers to punish
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them for seeking future employment from adidas, even beyond the noncompetition period.
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103.
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The Extension of Time clauses in the Covenants Not to Compete are also
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agreements are not authorized by Oregon law. And, any alleged trade secrets which Nike
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claims the Designers maintain in their possession have short shelf life. These alleged trade
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secrets will soon be disclosed or already have been disclosed by Nike. In the fast-moving,
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trendy world of design, the information will be stale and outdated in a year; thus, a time
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104.
Pursuant to ORS 28.020-28.030; ORS 28.080; and ORS 653.295, the Designers
hereby seek a declaration from this Court that their Covenants Not to Compete are invalid
and unenforceable. The Court should deem void unreasonable agreements such as these
agreements and then later relying on a court to strike the most offensive provisions.
105.
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In the alternative, the Designers request that the Court modify the Covenants Not to
Compete to strike the Competition Restriction and Extension of Time provisions.
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106.
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653.295 because his promotion to Senior Footwear Designer did not constitute bona fide
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advancement.
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107.
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There is a justiciable controversy between the parties that would result in specific
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relief to the Designers through the binding decree of court granting the above requested
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declaratory relief.
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MARKOWITZ HERBOLD PC
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WHEREFORE, Defendants pray that the Court enter judgment in their favor, award
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Plaintiff nothing, and award Defendants their damages, attorney fees and costs of suit.
:ARK}WITZH
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