Can you start a record label while working for another company?

[Numero Uno]

What are the advantages and disadvantages of starting a record company while being employed in another company? Whether the company is involved in the business of music or not?

 

[Black Panther]

It depends on the contract you have signed with your employer. For starters, is there a no-moonlighting clause in your contract.

 

[Numero Uno]

It depends on the contract you have signed with your employer. For starters, is there a no-moonlighting clause in your contract.

Yes, let's just say there is a no-moonlighting clause in my contract what does it mean?

 

[Black Panther]

Yes, let's just say there is a no-moonlighting clause in my contract what does it mean?

Well, a no-moonlighting clause will prohibit you as an employee from engaging in any business activities even though unrelated to the employee’s job. Do you understand what that means?

 

[Numero Uno]

Well, a no-moonlighting clause will prohibit you as an employee from engaging in any business activities even though unrelated to the employee’s job. Do you understand what that means?

Does that mean if I am working for a record label, I can't be involved in the business of music?

 

[Black Panther]

Does that mean if I am working for a record label, I can't be involved in the business of music?

Yes, that's what a no-moonlighting clause means!

 

[Numero Uno]

So then what am I suppose to do?

 

[Black Panther]

So then what am I suppose to do?

It will be in your best interest to stick to the contract...okay don't breach it...just put some respek on it okay!

 

[Scorpio]

You also have to watch out for a non-disclosure agreement because this will prohibit you as an employee from discussing your former employer's trade secrets or better yet stop you from using them in the case that you decide to start your own company.

 

[Black Panther]

Some companies have this agreement called "a covenant not to compete", or "a non-compete clause" (aka NCC), and basically what this agreement does is prohibit the employee from starting their own company and competing with the former employer for a designated period.

 

[Scorpio]

In addition, all these legal restrictions can lead to a lawsuit that will slow down a new company's growth because the former employee would have breached their previous employment agreement.