http://en.wikipedia.org/wiki/Blue_pencil_doctrine

In most jurisdictions, courts routinely "blue pencil" or reform covenants that are not reasonable.
The blue pencil doctrine gives courts the authority to either strike unreasonable clauses from a noncompete agreement,
leaving the rest to be enforced,
or actually modify the agreement to reflect the terms that the parties

could have — and probably should have — agreed to.

The term stems from the act of editing written copy with a blue pencil.