Eugene McCarthy left his position as director of sales for Nike’s Brand Jordan division in June 2003 to become vice president of U.S. footwear sales and merchandising at Reebok, one of Nike’s competitors. Nike sought a preliminary injunction to prevent McCarthy from working for Reebok for a year, invoking a noncompete agreement McCarthy had signed in Oregon in l997 when Nike had promoted him to his earlier position as a regional footwear sales manager. The agreement stated in pertinent part:
During EMPLOYEE’S employment by NIKE.and for one (1) year thereafter, (“the Restriction Period”), EMPLOYEE will not directly or indirectly.be employed by, consult for, or be connected in any manner with, any business engaged anywhere in the world in the athletic footwear, athletic apparel or sports equipment and accessories business, or any other business which directly competes with NIKE or any of its subsidiaries or affiliated corporations.
McCarty contends that such a contract is a restraint of trade and should not be enforced. Nike contends that the agreement is fair and should be enforced. Decide. [Nike, Inc. v McCarthy, 379 F3d 576 (9th Cir)]