Breaking up is hard to do: Who gets social media accounts when bride influencer bolts?

In a recent decision, the U.S. Court of Appeals for the Second Circuit, whose decisions control in New York, held that Hayley Paige Gutman (a renowned bridal designer and social media “influencer” of “Say Yes to the Dress” fame) was bound by a noncompete and signed away her rights to use the “Hayley Paige” name. The Second Circuit reversed the district court’s ruling, however, that her employer could control disputed Hayley Paige-themed social media accounts. Read on to understand the court’s decision and how your business can protect its own social media presence when a key person bolts.

Background

Gutman was employed by bridal design and fashion company JLM Couture, Inc., under a written contract in effect beginning in 2016 and extended through August 1, 2022. The employment agreement had a noncompete clause as well as a clause giving JLM the rights to the Hayley Paige name and “any derivative thereof.” She also agreed to a broad “works for hire” concession and consented to injunctive relief.

In addition to her design work for the company, Gutman become well known on multiple social media platforms (Facebook, Twitter, Instagram, etc.) as “Miss Haley Page.” The Instagram account had over a million followers, and a single post was valued at $30,000. After Gutman rebuffed JLM’s proposal to “monetize” the Haley Paige social media presence, she allegedly locked “her” Instagram account, made social media postings without JLM’s permission, and entered into promotion agreements with third parties.