Without limiting this purpose, the developer could use the confidential information to create a separate and similar business and take advantage of the company`s confidential information. If you are considering calling your important information a trade secret, it is important that you take steps to keep that information confidential. Therefore, a contract that requires the recipient of the information to respect its confidentiality is essential. As soon as a trade secret is revealed, it loses its trade secret. In fact, you can use a confidentiality agreement to protect any type of information that is not known to everyone. And the use of a confidentiality agreement means that those who receive the information are required to keep the information secret, which legally prohibits that disclosure, by limiting an agreement, from being a general disclosure that would defeat a trade secret. Courts have the opportunity to interpret the scope of an NOA based on the language of the agreement. For example, if a party can prove to the agreement that it had knowledge that was covered in the NDA prior to its signing, or if they can prove that they acquired the knowledge outside the agreement, they may be able to avoid negative judgment. Business insurance policies generally do not cover breaches of confidentiality, so it`s always best to get legal advice and find out what your options are. This is often because people can no longer sign or forget! You should be aware that these agreements can prevent the relationship from moving as fast as you like. The company discovered that these employees were legally purchasing mobile phones through the distribution organization and then reselling them at home with a significant price increase. When asked to sign the new agreement prohibiting this type of competitive behaviour, they decided that they were making more money in their resale operations. What is takeaway? Goal of specificity.
Be as accurate and descriptive as possible, without revealing the information you want to protect in the confidentiality agreement. If the description is too broad, a court cannot enforce the NOA. For example, if you said that all discussions between the parties were confidential, you would encounter the same problems as those mentioned above.