Monday, December 20, 2010

Sometimes the solution is not legal at all

I had a meeting with the principals of a new client today.  The company had former employees who stole customer lists and had just started to contact those customers for a new competing business. 
After much discussion about what would be the best course of action, cease and desist letter, the course and cost of potential litigation, I asked how much business the company had lost.  I asked since they were wondering what would be the best thing to do.

The principals told me that they had not lost any yet.  I agree with one of the principals who asked if maybe the best course would be to do nothing.  They then came up with a new idea.  Send out an offer to the customers that they think have been contacted by the former employees and give them an incentive offer.  If they have been contacted by a competitor, they would get two weeks free service on showing proof of the contact with the competitor.  The idea being the company keeps its customers and gathers further evidence against the former employees. 

The principals were delighted with this idea and I heartily agreed.  I told them that the best outcome would be to beat the old employees in the marketplace.