Non-compete clause
Encyclopedia
A non-compete clause or covenant not to compete (CNC), is a term used in contract law under which one party (usually an employee) agrees not to pursue a similar profession or trade in competition against another party (usually the employer). As a contract provision, a CNC is bound by traditional contract requirements including the consideration
doctrine. The use of such clauses is premised on the possibility that upon their termination or resignation, an employee might begin working for a competitor or starting a business, and gain competitive advantage by abusing confidential information about their former employer's operations or trade secret
s, or sensitive information such as customer/client lists, business practices, upcoming products, and marketing
plans.
However, an over-broad CNC may prevent an employee from working elsewhere at all. English Common Law originally held any such constraint to be unenforceable as a matter of public policy
. Contemporary case law permits exceptions, but generally will only enforce CNCs to the extent necessary to protect the employer. Most jurisdiction
s in which such contracts have been examined by the court
s have deemed CNCs to be legally binding so long as the clause contains reasonable limitations as to the geographical area and time period in which an employee of a company may not compete.
The extent to which non-compete clauses are legally allowed varies per jurisdiction. Some jurisdictions, such as the state of California
in the US, invalidate non-compete-clauses for all but equity stakeholders in businesses.
had already been "old and settled" that restraints on trade were unenforceable. That ban remained unchanged until 1621, when a restriction that was limited to a specific geographic location was found to be an enforceable exception to the previously absolute rule. Almost a hundred years later, the exception became the rule with the 1711 watershed case of Mitchel v. Reynolds which established the modern framework for the analysis of the enforceability of non-compete agreements.
s and television station
s, especially for radio personalities and television personalities working for media conglomerate
s. For example, if a radio or television personality quits, is laid off or fired from one station in the market they work in, they cannot work for another competing station in the same market until their contract expires with their former employing station.
, the enforceability of covenants not to compete is governed by common law
principles. As restrictions on trade, CNCs are not favored by Virginia courts, which will enforce only narrowly drafted CNCs that do not offend public policy.
In Virginia, a plaintiff
must prove by a preponderance of the evidence that the covenant is reasonable in the sense that it is: (1) no greater than necessary to protect its legitimate business interests, such as a trade secret
; (2) not unduly harsh or oppressive in restricting the employee's ability to earn a living; and (3) not against public policy. Paramount Termite Control Co., Inc v. Rector, 380 S.E.2d 922, 924 (Va. 1989).
must show that it is not unduly harsh or oppressive in restricting the employee's ability to earn a living. In Virginia, a CNC is not unduly harsh or oppressive if balancing its function, geographic scope and duration the employee is not precluded from (1) working in a capacity not in competition with the employer within the restricted area or (2) providing similar services outside the restricted area.
is quite common. Some law firms build their law practice around these agreements and represent employees, employers and potential new employers of an employee currently bound by a non-compete agreement. The agreement is not allowed to be overly broad and generally difficult to enforce if it is for more than two years. Also if the agreement is part of a general employment contract then there is the possibility of a Pre-Breach by an employer. This may cause the non-compete clause of the contract to become unenforceable.
, except for a small set of specific situations expressly authorized by statute. They were outlawed by the original California Civil Code
in 1872.
based employee agree to a one-year non-compete agreement. The contract stated that it was governed by and to be construed according to Maryland law. A Maryland employee then left to work for a competitor in California. When the new California employer sued in California state court to invalidate the covenant not to compete, the California court agreed and ruled that the non-compete provision was invalid and not enforceable in California. Business and Professions Code Section 16600 reflects a "strong public policy of the State of California" and the state has a strong interest in applying its law and protecting its businesses so that they can hire the employees of their choosing. California law is thus applicable to non-California employees seeking employment in California.
Whether California courts are required by the Full Faith and Credit Clause
of the United States Constitution
to enforce equitable judgments from courts of other states, having personal jurisdiction over the defendant, that enjoin competition or are contrary to important public interests in California is an issue that has not yet been decided.
in appropriate circumstances.
Reasonableness is the touchstone of the analysis and is highly fact-dependent. The context in which the CNC arises (such as employment relationship, contractual relationship) is a critical factor in the analysis. A CNC that is unreasonable because it is too broad, will be scaled back if it is in fact capable of being narrowed.
Even when a CNC is limited in duration, geographic reach, and scope, it will be enforced “only to the extent . . . necessary to protect the legitimate business interests of the employer.” Recognized legitimate business interests are generally identified as the protection of trade secrets, confidential information, and goodwill.
An otherwise valid CNC must still, like other contracts, be supported by consideration. Accordingly, the Supreme Judicial Court has held that a CNC must be “ancillary . . . to an existing employment or contract of employment” or some other “permissible transaction . . . .” However, consideration can exist regardless of whether the CNC is entered into at the beginning of the employment relationship, during the term of employment, or even at the end of an employment relationship.
, where the Washington Supreme Court
invalidated a CNC not supported by independent consideration by strictly enforcing the pre-existing duty rule.
only if the employer can show a reasonable business interest in having a CNC.
The enforceability of these agreements depends on the law of the particular state. As a general rule, however, with the exception of invention assignment agreements, they are subject to the same analysis as other CNCs.
Consideration
Consideration is the central concept in the common law of contracts and is required, in most cases, for a contract to be enforceable. Consideration is the price one pays for another's promise. It can take a number of forms: money, property, a promise, the doing of an act, or even refraining from...
doctrine. The use of such clauses is premised on the possibility that upon their termination or resignation, an employee might begin working for a competitor or starting a business, and gain competitive advantage by abusing confidential information about their former employer's operations or trade secret
Trade secret
A trade secret is a formula, practice, process, design, instrument, pattern, or compilation of information which is not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors or customers...
s, or sensitive information such as customer/client lists, business practices, upcoming products, and marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
plans.
However, an over-broad CNC may prevent an employee from working elsewhere at all. English Common Law originally held any such constraint to be unenforceable as a matter of public policy
Public policy
Public policy as government action is generally the principled guide to action taken by the administrative or executive branches of the state with regard to a class of issues in a manner consistent with law and institutional customs. In general, the foundation is the pertinent national and...
. Contemporary case law permits exceptions, but generally will only enforce CNCs to the extent necessary to protect the employer. Most jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
s in which such contracts have been examined by the court
Court
A court is a form of tribunal, often a governmental institution, with the authority to adjudicate legal disputes between parties and carry out the administration of justice in civil, criminal, and administrative matters in accordance with the rule of law...
s have deemed CNCs to be legally binding so long as the clause contains reasonable limitations as to the geographical area and time period in which an employee of a company may not compete.
The extent to which non-compete clauses are legally allowed varies per jurisdiction. Some jurisdictions, such as the state of California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
in the US, invalidate non-compete-clauses for all but equity stakeholders in businesses.
History
As far back as 1415, English common lawCommon law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
had already been "old and settled" that restraints on trade were unenforceable. That ban remained unchanged until 1621, when a restriction that was limited to a specific geographic location was found to be an enforceable exception to the previously absolute rule. Almost a hundred years later, the exception became the rule with the 1711 watershed case of Mitchel v. Reynolds which established the modern framework for the analysis of the enforceability of non-compete agreements.
United States
The majority of U.S. states recognize and enforce various forms of non-compete agreements. A few states, such as California, totally ban or prohibit non-compete agreements except in limited circumstances. For this reason, non-compete agreements have been popular among companies with employees working in states where they are allowed. They are very common among commercial radio stationRadio station
Radio broadcasting is a one-way wireless transmission over radio waves intended to reach a wide audience. Stations can be linked in radio networks to broadcast a common radio format, either in broadcast syndication or simulcast or both...
s and television station
Television station
A television station is a business, organisation or other such as an amateur television operator that transmits content over terrestrial television. A television transmission can be by analog television signals or, more recently, by digital television. Broadcast television systems standards are...
s, especially for radio personalities and television personalities working for media conglomerate
Media conglomerate
A media conglomerate, media group or media institution is a company that owns large numbers of companies in various mass media such as television, radio, publishing, movies, and the Internet...
s. For example, if a radio or television personality quits, is laid off or fired from one station in the market they work in, they cannot work for another competing station in the same market until their contract expires with their former employing station.
Virginia
In VirginiaVirginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
, the enforceability of covenants not to compete is governed by common law
Common law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
principles. As restrictions on trade, CNCs are not favored by Virginia courts, which will enforce only narrowly drafted CNCs that do not offend public policy.
In Virginia, a plaintiff
Plaintiff
A plaintiff , also known as a claimant or complainant, is the term used in some jurisdictions for the party who initiates a lawsuit before a court...
must prove by a preponderance of the evidence that the covenant is reasonable in the sense that it is: (1) no greater than necessary to protect its legitimate business interests, such as a trade secret
Trade secret
A trade secret is a formula, practice, process, design, instrument, pattern, or compilation of information which is not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors or customers...
; (2) not unduly harsh or oppressive in restricting the employee's ability to earn a living; and (3) not against public policy. Paramount Termite Control Co., Inc v. Rector, 380 S.E.2d 922, 924 (Va. 1989).
Legitimate business interest
In Virginia, courts weigh the (1) function, (2) geographic scope and (3) duration of the CNC against the employer's legitimate business interests to determine their reasonableness. Additionally, CNCs are only reasonable if they prevent the employee from entering into direct competition with the employer and must not encompass any activity in which the employer is not engaged.Reasonable restriction on employee's ability to earn a living
Second, to enforce the CNC, a PlaintiffPlaintiff
A plaintiff , also known as a claimant or complainant, is the term used in some jurisdictions for the party who initiates a lawsuit before a court...
must show that it is not unduly harsh or oppressive in restricting the employee's ability to earn a living. In Virginia, a CNC is not unduly harsh or oppressive if balancing its function, geographic scope and duration the employee is not precluded from (1) working in a capacity not in competition with the employer within the restricted area or (2) providing similar services outside the restricted area.
Public policy
Third, to enforce a CNC, a Plaintiff must show the CNC is reasonable from the standpoint of a sound public policy. Virginia does not favor restrictions on employment and therefore CNCs are generally held against public policy unless they are narrowly drafted as enumerated above. In Virginia, a CNC does not violate public policy if the restrictions it imposes do not create a monopoly for the services offered by the employer or create a shortage of the skills provided by the employee.Florida
The enforceability of non-compete agreements in the state of FloridaFlorida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
is quite common. Some law firms build their law practice around these agreements and represent employees, employers and potential new employers of an employee currently bound by a non-compete agreement. The agreement is not allowed to be overly broad and generally difficult to enforce if it is for more than two years. Also if the agreement is part of a general employment contract then there is the possibility of a Pre-Breach by an employer. This may cause the non-compete clause of the contract to become unenforceable.
California
Non-compete agreements are automatically void as a matter of law in CaliforniaCalifornia
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, except for a small set of specific situations expressly authorized by statute. They were outlawed by the original California Civil Code
California Civil Code
The Civil Code of California is a collection of statutes for the State of California. The code is made up of statutes which govern the general obligations and rights of persons within the jurisdiction of California...
in 1872.
Out of state agreements are not enforceable
The preeminent court decision discussing the conflict between California law and the laws of other states is the 1998 decision Application Group, Inc. v. Hunter Group, Inc. In Hunter, a Maryland company required that its MarylandMaryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
based employee agree to a one-year non-compete agreement. The contract stated that it was governed by and to be construed according to Maryland law. A Maryland employee then left to work for a competitor in California. When the new California employer sued in California state court to invalidate the covenant not to compete, the California court agreed and ruled that the non-compete provision was invalid and not enforceable in California. Business and Professions Code Section 16600 reflects a "strong public policy of the State of California" and the state has a strong interest in applying its law and protecting its businesses so that they can hire the employees of their choosing. California law is thus applicable to non-California employees seeking employment in California.
Whether California courts are required by the Full Faith and Credit Clause
Full Faith and Credit Clause
The Full Faith and Credit Clause is the familiar name used to refer to Article IV, Section 1 of the United States Constitution, which addresses the duties that states within the United States have to respect the "public acts, records, and judicial proceedings of every other state." According to...
of the United States Constitution
United States Constitution
The Constitution of the United States is the supreme law of the United States of America. It is the framework for the organization of the United States government and for the relationship of the federal government with the states, citizens, and all people within the United States.The first three...
to enforce equitable judgments from courts of other states, having personal jurisdiction over the defendant, that enjoin competition or are contrary to important public interests in California is an issue that has not yet been decided.
Exceptions - valid non-compete agreements in California
There are limited situations where a reasonable non-compete agreement may be valid in California.- If an owner is selling the goodwillGoodwill (accounting)Goodwill is an accounting concept meaning the value of an entity over and above the value of its assets. The term was originally used in accounting to express the intangible but quantifiable "prudent value" of an ongoing business beyond its assets, resulting perhaps because the reputation the firm...
in their business. - When there is a dissolution or disassociation of a partnershipPartnershipA partnership is an arrangement where parties agree to cooperate to advance their mutual interests.Since humans are social beings, partnerships between individuals, businesses, interest-based organizations, schools, governments, and varied combinations thereof, have always been and remain commonplace...
. - Where there is a dissolution of a limited liability companyLimited liability companyA limited liability company is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions...
.
Massachusetts
Noncompete agreements will be enforced in MassachusettsMassachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
in appropriate circumstances.
Historical context
By 1837, Massachusetts had indisputably adopted the analysis established in Mitchel. In 1922, the Supreme Judicial Court eliminated any doubt that restrictive covenants in the employment context would be enforced when reasonable.Current law
The basic proposition enunciated long ago continues to apply: “A covenant not to compete is enforceable only if it is necessary to protect a legitimate business interest, reasonably limited in time and space, and consonant with the public interest.”Reasonableness
Reasonableness is the touchstone of the analysis and is highly fact-dependent. The context in which the CNC arises (such as employment relationship, contractual relationship) is a critical factor in the analysis. A CNC that is unreasonable because it is too broad, will be scaled back if it is in fact capable of being narrowed.
Even when a CNC is limited in duration, geographic reach, and scope, it will be enforced “only to the extent . . . necessary to protect the legitimate business interests of the employer.” Recognized legitimate business interests are generally identified as the protection of trade secrets, confidential information, and goodwill.
Consideration
An otherwise valid CNC must still, like other contracts, be supported by consideration. Accordingly, the Supreme Judicial Court has held that a CNC must be “ancillary . . . to an existing employment or contract of employment” or some other “permissible transaction . . . .” However, consideration can exist regardless of whether the CNC is entered into at the beginning of the employment relationship, during the term of employment, or even at the end of an employment relationship.
Washington
According to Racine v. Bender, CNCs will be enforced by courts if they are validly formed and reasonable. There are exceptions, like in Labriola v. Pollard Group, Inc.Labriola v. Pollard Group, Inc.
Labriola v. Pollard Group, Inc., 152 Wash.2d 828 , was a case decided by the Supreme Court of Washington that invalidated a modification of an employment contract for an at-will employee which would have added a non-competition agreement because the modification lacked independent consideration.The...
, where the Washington Supreme Court
Washington Supreme Court
The Washington Supreme Court is the highest court in the judiciary of the U.S. state of Washington. The Court is composed of a Chief Justice and eight Justices. of the Court are elected to six-year terms...
invalidated a CNC not supported by independent consideration by strictly enforcing the pre-existing duty rule.
Canada
Canadian courts will enforce non-competition agreements. However, there are some differences with the USA. Canada is analogous to the group of states that will not reform or blue-pencil covenants. These States are: Arkansas, Georgia, Nebraska, Virginia, and Wisconsin. However, Canadian courts have a much broader notion of fiduciary duty. High level or key employees will still have a duty to their employer, even post-employment. Recently the Supreme Court of Canada has expanded the notion of which employees owe fiduciary duties. Non-solicitation clauses are also routinely enforced.Europe
Generally, CNCs are allowable in EuropeEurope
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
only if the employer can show a reasonable business interest in having a CNC.
- In the NetherlandsNetherlandsThe Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, non-compete clauses (non-concurrentiebeding or concurrentiebeding) are allowed regarding issues such as moving to a new employer and approaching customers of the old company. Unreasonable clauses can be invalidated in court. - In the United KingdomUnited KingdomThe United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, CNCs are called Restraint of Trade clauses and may be used only if the employer can prove a legitimate business interest to protect in entering the clause into the contract. Mere competition will not amount to a legitimate business interest. - In GermanyGermanyGermany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, CNCs are allowed for a term up to two years. The employer must provide financial compensation for the duration of the CNC amounting to at least half the gross salary. Unreasonable clauses, for example excluding similar jobs in whole Germany, can be invalidated. - In BelgiumBelgiumBelgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
, CNCs are restricted to new employments within Belgium and for no more than one year. The employer must pay financial compensation for the duration of the CNC, amounting at least the same gross salary. - In SpainSpainSpain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
, CNCs are regulated by article 21 of the labor law. CNCs are allowed up to two years for technical professions and six months for other professions. - In FranceFranceThe French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, CNCs must be limited in time to a maximum of two years and to a region where there the employee's new work can reasonably be seen as competitive. The region can be a city or the whole country, depending on the circumstances. The employer can be forced to pay financial compensation, typically 30 percent of the last salary, depending on the circumstances surrounding the termination of the employment. A CNC may not unreasonably limit the possibilities of the employee to find a new employment. - In RomaniaRomaniaRomania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
, CNCs are regulated by article 20-4 of the labor code and restricted to two years for managing positions and six months for other positions. The employer must pay financial compensation for the duration of the CNC, amounting to at least 25 percent of the last salary.
- In PortugalPortugalPortugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
, CNCs are regulated by article 136 of the labor code and restricted to two years extendible to three years in cases of access to particularly sensitive information. The employer must pay financial compensation for the duration of the CNC but the law doesn't specify anything regarding the amount of the compensation.
Related restrictive covenants
While CNCs are one of the most common types of restrictive covenants, there are many others. Each serves a specific purpose and provides specific rights and remedies. The most common types of restrictive covenants are as follows:- Garden-leave clause: a type of CNC by which an employee is compensated during the period that the employee is restricted.
- Forfeiture-for-Competition Agreement and Compensation-for-Competition Agreement: an agreement by which an employee either forfeits certain benefits or pays some amount of money to engage in activities that are competitive with his former employer.
- Forfeiture agreement: an agreement by which an employee forfeits benefits when his employment terminates, regardless of whether he engages in competitive activities.
- Nondisclosure/confidentiality agreementNon-disclosure agreementA non-disclosure agreement , also known as a confidentiality agreement , confidential disclosure agreement , proprietary information agreement , or secrecy agreement, is a legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties...
: an agreement by which a party agrees not to use or disclose the other party's confidential information.
- Nonsolicitation agreement: an agreement by which an employee agrees not to solicit - and, if well drafted, not to accept - business from the employer's customers.
- Antipiracy agreement: an agreement by which an employee agrees not to solicit - and, if well drafted, not to hire - the employer's employees.
- Invention assignment agreement: an agreement by which an employee assigns to the employer any potential inventions conceived of during employment.
The enforceability of these agreements depends on the law of the particular state. As a general rule, however, with the exception of invention assignment agreements, they are subject to the same analysis as other CNCs.
Cases
- In 2005, MicrosoftMicrosoftMicrosoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
and GoogleGoogleGoogle Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...
litigated the enforceability of a non-compete clause in Kai-Fu Lee's employment contract with Microsoft. Difference in state laws were highlighted as Google attempted to maneuver the case to California courts, where California law would be more likely to hold the clause unenforceable. - IBM v. PapermasterIBM v. PapermasterIn 2008, Mark Papermaster, IBM's Vice President of the Blade Development Unit, became the subject of a notable trade secret misappropriation and non-compete clause case when he announced a plan to move to Apple as Senior Vice President of Devices Hardware Engineering. On October 22, 2008, IBM filed...
(No. 08-9078, 2008 U.S. Dist): Mark PapermasterMark PapermasterMark Papermaster was the Senior Vice President of Devices Hardware Engineering at Apple Inc. He replaced Tony Fadell who was responsible for the team that created the iPod. Papermaster worked at IBM from 1982–2008. His last position at IBM was as vice president of IBM's blade server division...
moving from IBMIBMInternational Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
to Apple computerApple ComputerApple Inc. is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad...
in 2008. - In April 2010, after a year of non-compete clause stipulated on the contract, Paul Teutul Jr., formerly from Orange County ChoppersOrange County ChoppersOrange County Choppers is a custom and production motorcycle manufacturer based in Orange County, New York, that was founded by Paul Teutul, Sr., and Paul Teutul, Jr., in 1999. The company was featured on American Chopper, a reality TV show that debuted in September 2002 on the Discovery Channel,...
, was able to start his own new non-motorcycle design company.