Target Hires Key Executive Away From Amazon Ch-6 Pg255-257 FINAL PROJECT Intellectual Property By Jeeten Karki ITS-360-001 Target Hires Key Executive Away From Amazon Ch-6 Pg255-257

Introduction and over view of the case Target is a the eight largest retailer in the US and has a total of 1,822 stores all over the US and Amazon being the world largest e-commerce marketplace. Arthur Valdez was Amazon’s executive for 16 years and has worked with high confidential strategy and secrets. After Target announced that they are hiring Arthur Valdez, Amazon Sued Arthur Valdez .Target’s goal is to bring the companies outdated tech infrastructure up to speed and help store more efficiently to fill online orders during peak hours. Amazon on the other hand is not happy about Valdez’s move as Amazon filed a law suit against him to stop him from starting his new job with the discount retailer, claiming a non-compete agreement he signed precludes him from working for any direct rival for 18months to stop Valdez from sharing critical information of Amazon with Target.

Ethic Problem Statements A trade secret policy is a rule that protects private business information that gives a business an edge over its competitors. This includes marketing strategies, software, methods of distribution, formulas, inventions, pricing, consumer data analysis, and so on. Amazon claims that Arthur Valdez not just violated the contract, but at the same time shared Amazon’s confidential information about e-commerce so Amazon sues Valdez to protect the trade secret. On the other Hand Target Asserted that Valdez has not violated any agreement and Valdez has taken precaution to ensure that any proprietary information remains confidential claiming that Amazon’s suit was without merit. \

Extended Issues from Other resources The online store said that Valdez shared with his future bosses information on how Amazon handles orders and logistics during the peak holiday season. “Mr. Valdez cannot lead Target’s supply chain operations without referencing confidential information learned and developed by him at Amazon,” the company said in its suit, which does not name Target. Amazon is also asking the court to make Valdez pay its legal fees. Valdez’s hiring was announced in February, when Target said the 16-year Amazon veteran would head its supply chain and logistics to better integrate its stores with its fast-growing e-commerce operations. Barring the court stopping him, the executive is set to begin his new job on March 28. As for the Valdez suit, Target said it has taken pains to make sure its new hire doesn’t share Amazon secrets when he starts his new job. “We have taken significant precautions to ensure that any proprietary information remains confidential and we believe this suit is without merit,” Target told Fortune in an e-mailed statement. http://fortune.com/2016/03/22/amazon-target-lawsuit/

Solution from My Perspective It depends if Mr. Valdez doesn't share the trade secret or doesn't share critical information of Amazon, then the suit is not considered valid else it will.  As long as Target does not copy Amazon in terms of the way their design, coding, web-based software is used and processes, they should not have issues and this would be a good fair settlement for both and their uniqueness will be there.  Non-Compete clauses in employment contracts definitely encourages innovation until employee works for the same organization and is satisfied, but it can be a slowing down factor for innovation when a employee doesn't feels satisfied and has to move to different organization and start over with new knowledge and work environment.

Out Comes Amazon claims Valdez failed to “accurately describe his role at Target” when he announced his departure, and says that Target’s laudatory press release shows Valdez intends to use his experience at Amazon in his new role. The Court has jurisdiction over Defendant Valdez and the subject matter of this action because Mr. Valdez entered into the Noncompetition Agreements(A Non-Compete Agreement is a document that attempts to block an individual or entity from potentially entering into competition with another party). He performed his contract with amazon in Washington and he expressly consented to the jurisdiction of this court in the Noncompetition Agreement. Arthur Valdez started his job with Target from April 2016 after a month long court battle which rolled into his favor of earning for his living. https://www.seattletimes.com/business/amazon/amazon-sues-target-bound-former-logistics-executive/

Video Related to this case https://www.youtube.com/watch?v=-7mDL46SKYE http://fortune.com/2016/03/22/amazon-target-lawsuit/

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