Who Owns Your Online Networking Contacts?
Ben Morris writes "A recent judgement in the UK courts has forced a former employee to hand over details of his business contacts built up through LinkedIn.com while he was employed by his former company. The decision is one of the first in the UK to show the tension between businesses encouraging their employees to use social networking websites, and trying to claim that the contacts should remain confidential when they leave."
Hays alleged that the employee used his LinkedIn network to approach clients for his own rival agency, which he set up a few weeks before leaving them.
If he registered his work e-mail and promoted that as his main contact, then yes, he was using Linkedin in the course of performing his job and his employer is entitled to those contacts. However, I would also expect that whether or not there's confidentiality involved would depend upon if there was an NDA in force when he was hired.
If you make contacts, you keep 'em unless it's something profoundly related to your company (e.g. the guy in shared services who'll push your capital requests).
Otherwise those are your contacts. You bet your ass the sales guys turn around and pitch your customers in their next gig. Why should it be any different for IT?
ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
Apparently some other members of the company had been contacted by recruiters and they started going through email and found some emails in violation of the non-compete clause. They then solidified their case through the former employee's LinkedIn contacts. The guy ended up settling out of court and they drilled him financially.
After finding that out, I went through my LinkedIn contacts and removed ALL the recruiters on there I didn't know on a personal level. I then contacted the recruiters remaining on my list and asked them to contact me before sending any InMail to any of my LinkedIn contacts.
After RTFA, it appears as if the bloke in question set up his linkdin several weeks prior to him leaving. Of a more interesting nature, in my mind, is, at what point does an employer here in the States 'own' your contacts? Think about it. You've been on a site like the one mentioned in the article for lets say 5 years. You accept a position at a new company. Over the course of your 2 years being employed there, you add lets say 5 contacts. You then accept another position at another company, perhaps because you received a better job offer through this service. Can the comapny you are now leaving sue you in the US and obtain all of your contacts, even those prior to when you joined?
Another question is, are you now in the position of having to list out any and all personal and professional contacts you have on various internet sites as a part of your disclosure when filling out your paperwork for a new company? Sort of like having to list patents, websites and other works you might already have prior to working somehwere?
Time will tell I guess. this case seems pretty straightforward based on the limited article...but it sure will muddy up quick.
"Work is the curse of the drinking class" Oscar Wilde
Is a tricky question.
The real question is, though, how does it impact on your and your former employer's life? A contact isn't some sort of IP. There's a person or a company on the other end of the address, phone number or mail address. How will they react to a company that browbeats you into handing over your, partly private, address book?
If anything I'd send a mail to my contacts and tell them in no uncertain terms what my former employer did. Would you want to do business with a company where you have to watch constantly for backstabbing? I don't know if I'd really enjoy that.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
...where they have decent employment and privacy laws this would never be allowed.
Oh. Wait...
Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
Contacts can sometimes be worth an incredible amount of money. This is absolutely true when you're talking about a business that relies on doing contract work.
To all you worker drones out there:
To all you bosses out there:
Contacting said contacts to give them what might be construed as negative information about your prior employer could indeed convince them to do business elsewhere, raising the spectre of competitive activity (even if you don't profit directly). If company xyz is able to take your former employer's contacts because you published their dirty laundry, you could end up liable even if xyz never compensates you for their good fortune. In a civil court, it would place you in the position of proving that xyz didn't compensate you for your actions, an incredibly difficult proposition (remember: in civil court, the standard is a preponderance of evidence, not proof beyond a reasonable doubt).
It really all boils down to what you can get away with. As was mentioned previously, hair stylists will tend to take their customers with them when they go to a new salon. This is also common when talking about stock brokers and investment advisers, "taking their book with them." Very competent car salesmen will also walk with their clients. I would have no compunction switching vendors when a salesman changes jobs if the business is such that I know he has a very strong influence in the quality of service I receive.
At the same time, business owners tend to think of these customers as "theirs" and use any number of anti-competitive ruses to crush their employees. I worked at a midrange shop where the boss hosed one of his sales reps on a deal: he gave the guy a figure to offer for a deal and the rep had no latitude to change the offer, it being the boss' money and all. When the customer hemmed and hawed over it, the boss called them back and offered a better price, then put the sale on his board, not the other rep's! The rep walked, naturally, and a better case of killing a goose that laid golden eggs could not be found. The guy tried taking his book with him and the boss pulled out the non-compete signed many moons ago. They wasted a lot of money in court and the judge eventually decided against him.
A very common and legal scam in service-related industries is the lawn service con. When someone buys a lawn service, they're not buying the equipment so much as the customer base. The equipment costs are negligible compared to the effort of gathering all those customers in the first place. Ah, but what does the wily lawnmower man do? After he sells his business, he contacts all of his customers and lets them know he's going to be doing business as a different name. Those customers, happy with his service, will switch companies and the new owner of the old company will find himself with no work. Anyone buying a service business like this must must must stipulate a non-compete in the contract.
There's no right or wrong in this kind of dispute, there's only what you can get away with and what you can be nailed with in court.
Kwisatz Haderach
Sell the spice to CHOAM
This Mahdi took Shaddam's Throne
How exactly does one "hand over" an electronic record that can be freely copied?
What are they going to do, tell all his contacts to no longer talk to him if he calls?