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Why Use A Confidentiality Agreement

The agreement must set a period during which information is provided and set the period during which confidentiality of information must be guaranteed. Some poorly developed confidentiality agreements will define only one of these periods. In addition, even if both periods are indicated, it is important to ensure that a starting point is set for the period during which the confidentiality of the information must be maintained. If this starting point is not defined, problems may arise on the road. For example, imagine a confidentiality agreement that states that disclosure will end and information will have to remain confidential for three years. No starting point is indicated for the confidentiality period. When a company receives confidential information the day before the publication deadline, does the entity have to keep the information confidential for three years from that date or for one year from that date? Of course, it is advantageous for the recipient that the confidentiality period begins at the beginning of the disclosure period, while the public has the benefit of starting the confidentiality period with the date of disclosure of confidential information. The fact is that the confidentiality agreement should explicitly specify the start date of the confidentiality period to avoid confusion. Confidentiality agreements, sometimes referred to as confidentiality or secrecy agreements, are contracts entered into by two or more parties, in which some or all parties agree that certain types of information disclosed by one party to another or produced by either party remain confidential. These agreements are often used when a company or individual has a secret process or product designed to evaluate another company as the precursor to a global licensing agreement.

Or maybe one party wants to evaluate another party`s existing commercial product for a new and another application. To learn more about confidentiality agreements and how they can help minimize your risk of loss, please contact our Lake Elmo law firm to agree on a consultation. In California (and some other U.S. states), there are special circumstances regarding confidentiality agreements and non-compete clauses. California`s courts and legislatures have indicated that they value the mobility and entrepreneurship of a worker in general more than protectionist doctrines. [7] [8] An important element that must be addressed in any confidentiality agreement is the standard by which parties process confidential information.

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