Can an Employer Own Your Name?
The intersection of personal branding and corporate ownership can lead to complex legal disputes, particularly in industries like fashion. A prominent example is the legal battle between bridal designer Hayley Paige Gutman and her former employer, JLM Couture. This case raises the question of whether an employer can own your name and offers valuable insights into noncompete agreements, intellectual property rights, and the importance of clear contractual terms.
Background of the Dispute
In 2011, at the age of 25, Hayley Paige Gutman entered into an employment agreement with JLM Couture, a bridal design and fashion company. Under this contract, Gutman granted JLM the exclusive worldwide right to use her name—including “Hayley Paige” and derivatives thereof—in connection with bridal design. This agreement also encompassed the right for JLM to register trademarks under her name. Additionally, the contract included a noncompete clause, prohibiting Gutman from engaging in competing activities during her employment term and for a specified period thereafter.
Over the years, Gutman became a prominent figure in the bridal industry, notably through her active presence on social media platforms and appearance on popular television show Say Yes to the Dress. She developed her brand under the JLM label. She managed accounts under the handle “Miss Hayley Paige,” which featured both personal content and promotions related to JLM’s products.
In late 2019, tensions arose when Gutman altered the bio of her Instagram account to indicate it was a personal and creative space, which JLM viewed as a breach of their agreement. Subsequent contract negotiations failed, leading to Gutman’s resignation in 2020.
Legal Proceedings
Following her departure, JLM initiated legal action against Gutman, alleging breach of contract, trademark infringement, and unauthorized use of social media accounts. The company asserted that, per the employment agreement, it held exclusive rights to the “Hayley Paige” name and associated social media accounts. They contended that Gutman’s personal use of these platforms and her attempts to promote non-JLM brands violated their contractual arrangement.
The Southern District of New York granted JLM a temporary restraining order and, later, a preliminary injunction, which prohibited Gutman from competing against JLM until August 1, 2022. It also prohibited her from using the name “Hayley Paige” without JLM’s express permission during the litigation.
Gutman countered by emphasizing the personal nature of her name and likeness, arguing that she should retain the right to use them in her professional endeavors. She highlighted the challenges of relinquishing control over her personal brand and the implications it had on her career and identity. In the interim, Gutman was unable to identify herself by her name Hayley Paige, and she rebranded to go by the name “CHEVAL” until resolution was reached. Gutman also pivoted to launch a women’s shoe collection to continue her career as a fashion designer while adhering to the restrictions that prohibited her from working in the bridal fashion space.
In May 2022, a federal judge upheld the noncompete clause in Gutman’s contract, recognizing JLM’s legitimate interest in protecting its brand and investments. The court noted that the noncompete was reasonable, given the need for JLM to reestablish its brand identity separate from Gutman’s influence.
Resolution and Key Takeaways
So, can an employer own your name? The dispute reached a settlement in 2024, which will be discussed in greater detail in a future blog post. In connection with the settlement, ownership of the “Hayley Paige” name was returned to Gutman.
This case underscores several critical considerations for professionals across industries:
- Understanding Contractual Obligations: It’s imperative to fully comprehend the terms of any employment agreement, especially clauses related to intellectual property, noncompete provisions, and the use of personal likeness. Consulting with an attorney during the negotiation process is crucial to have a full understanding how the terms may impact you down the road.
- Negotiating Fair Terms: Engaging legal counsel during contract negotiations can help ensure that terms are balanced and protect personal interests, particularly when personal branding is involved.
- Managing Social Media Assets: Clearly delineating the ownership and permitted use of social media accounts can prevent disputes over control and content, especially when personal and professional lines blur.
- Awareness of Noncompete Enforceability: Noncompete clauses can have significant career implications. Understanding their enforceability and scope within your jurisdiction is crucial. This is more important than ever given the ever-shifting legal landscape in attempts to regulate or ban noncompetes on a national level.
If you have concerns about your employment contracts or intellectual property rights, let us know how we can help.
Law is driven by compelling storytelling. Ashley Bowcott grew up as a writer in a family of legal professionals.
