H2O Inc. manufacturers and sells water purification equipment. H2O created a new portable battery operated water purifier, called Water Wise, which people can use in their homes or when traveling. Recently a company, Pure Drink Inc., located several blocks away, came out with a similar purifier called Water Ways. Sales of Water Wise have dropped off due to the sales of this new Water Ways product. H2O is furious and thinks it is an identical copy of theirs, so they have contacted their lawyers to see what they can do. Upon investigation, H2O discovered one of their former designers, Rod, had accepted $20,000 to work for Pure Drink. Rod had joined Pure Drink 3 months after his H2O employment contract had expired. In his H2O contract though, a clause stated that he could not work for a competitor within 15 km. for 1 year after he left H2O. H2O is convinced that Rod has given their design for Water Wise to Pure Drink and plans to take legal action. They deny any liability. Discuss FULLY the legal issues and the rights and remedies of all the parties.

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