This is the third part of a series of four blogs designed to give your business the competitive edge it needs to preserve the most valuable assets your business has such as the financial information of your company, trade secrets and intellectual property rights. Here are some examples where you may need a confidentiality agreement:
- Due diligence during mergers and acquisitions;
- Settling a disputed claim;
- Starting a business relationship with another company;
- Employment relationships;
- Intellectual property licenses;
- Internal mechanics of software development; and
- Business secrets, prices and customer lists.
There are many key considerations and clauses that must be in the confidentiality agreement to be enforceable, such as the following:
- Clear definition of what is confidential information;
- What is not confidential information;
- A method for tracking what is disclosed;
- Limiting how the information can be used;
- Finite use by receiving party, as well as other key considerations; and
- You will need to determine who will see that confidential information and specifically define that in the agreement.
Once the need for the disclosure is completed, what must you consider?
Will the information be returned and will there be no authorization for duplication or copying? Or instead, will destruction of the information be sufficient, but how should it be supervised and monitored? This also needs to be spelled out in the agreement.
There is no one size fits all. If you really want to protect your business, you need to make sure that a confidentiality agreement is tailored for your business type and your business needs. A properly drafted confidentiality agreement is essential to protect you and your business.
The contents of this blog and website are for informational purposes only and do not constitute legal advice. Use of and access to this blog and website do not create an attorney-client relationship between the user and Iurillo Law Group, P.A.