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If noncompete is banned in California then how is the OpenAI customer noncompete legal? https://archive.ph/O9iMu https://archive.ph/O9iMu Their terms are gove

If noncompete is banned in California then how is the OpenAI customer noncompete legal? https://archive.ph/O9iMu https://archive.ph/O9iMu Their terms are governed by the laws of California. If they can’t apply noncompete to employees then how do they get away applying it to customers? https://tinyurl.com/cali-openai-complaint https://tinyurl.com/cali-openai-complaint

kortilla 3y ago
Because customers and clients are not the same at all?
- throwup238 3y ago
  The CA law that bans noncompetes actually says "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void." [1] OpenAI's noncompete is unenforceable if you live in California. However, in eight days (1/1/2024) SB 699 [2] goes into effect, extending that protection to everyone outside the state too and AB 1076 [3] amends the section to read “shall be read broadly," broadening the application of the law even further. [1] https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=16600 https://leginfo.legislature.ca.gov/faces/codes_displaySectio.... [2] https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB699 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtm... [3] https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240AB1076 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtm...
  - hiatus 3y ago
    > However, in eight days (1/1/2024) SB 699 [2] goes into effect, extending that protection to everyone outside the state too How can a state unilaterally extend its jurisdiction across state lines?
    - kortilla 3y ago
      It’s not, it’s applying it to company’s operating in California. The expansion is to all of their customers/clients. If the company leaves California then the state has no jurisdiction over their business.
creer 3y ago
You are showing terms of use, not an employement contract. The terms of use make it a condition on users to not use the OpenAI (for example) output to build services that compete with other OpenAI products. It does not prevent you from competing with OpenAI - only from competing BY using its own output in your competing product's training (just an example). You can even use OpenAI AND compete.

kortilla 3y ago

Because customers and clients are not the same at all?

throwup238 3y ago
The CA law that bans noncompetes actually says "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void." [1] OpenAI's noncompete is unenforceable if you live in California. However, in eight days (1/1/2024) SB 699 [2] goes into effect, extending that protection to everyone outside the state too and AB 1076 [3] amends the section to read “shall be read broadly," broadening the application of the law even further. [1] https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC&sectionNum=16600 https://leginfo.legislature.ca.gov/faces/codes_displaySectio.... [2] https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB699 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtm... [3] https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240AB1076 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtm...
- hiatus 3y ago
  > However, in eight days (1/1/2024) SB 699 [2] goes into effect, extending that protection to everyone outside the state too How can a state unilaterally extend its jurisdiction across state lines?
  - kortilla 3y ago
    It’s not, it’s applying it to company’s operating in California. The expansion is to all of their customers/clients. If the company leaves California then the state has no jurisdiction over their business.

creer 3y ago

You are showing terms of use, not an employement contract. The terms of use make it a condition on users to not use the OpenAI (for example) output to build services that compete with other OpenAI products. It does not prevent you from competing with OpenAI - only from competing BY using its own output in your competing product's training (just an example). You can even use OpenAI AND compete.