Nondisclosure agreements are contracts in which a party (normally an employee) promises to protect the confidentiality of a secret that is disclosed to him or her during the course of their employment, or during another business transaction. If you have a nondisclosure agreement with someone who then later uses your secret information without your authorization, you can make a request to a court to stop the person from violating the nondisclosure agreement. In addition, you can often sue the offender for any damages you suffered as a result of the breach of confidentiality.
The use of nondisclosure agreements within employment contracts has grown in tandem with the growth of the high tech and information-based fields. Entrepreneurs and employers should be aware of how to properly use them.
Trade Secret Protection
Perhaps one of the biggest uses for nondisclosure agreements is in the protection of trade secrets. Unlike patents, which must be part of the public domain, trade secrets are, by definition, secret. In addition, trade secrets are only afforded protection if the owner takes measures to keep the secret and the secret gives the owner an advantage in the marketplace.
Creating Confidential Relationships
Perhaps the real purpose of nondisclosure agreements is to create confidential relationships between the party that holds the trade secret and the party to whom the trade secret is disclosed. Parties that contract into such relationships have a legal duty to keep the confidential information in confidence.
Get the best Legal Help with Your Nondisclosure Agreement
Nondisclosure agreements are a great way to help protect your company’s valuable trade secrets and intellectual property. We help you draft your agreement and keep your confidential information private.