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In Comedy Club, Inc. v. Improv West Associates, 553 F. 3d 1277 (9th Cir. January 29, 2009), the Court recently held that in-term (during the term of contractrelationship) covenants not to compete in “franchise-like” agreements governed by California law are void if they foreclose competition in a substantial share of a business, trade, or market
After obtaining a sweeping nationwide injunction from an arbitrator that enjoined licensee Comedy Club, Inc. (“CCI”) from opening any new comedy clubs until 2019 pursuant to a trademark license agreement, licensorcompetitor Improv West Associates (“Improv”) could not have been in the mood for laughs when the U.S. Court of Appeals for the Ninth Circuit modified the arbitrator’s injunction by significantly narrowing its scope and breadth
