Should A Confidentiality Agreement Have A Term

So, “how,” you may ask, should you determine the length of your confidentiality agreement? In this article, I will explain when it makes sense to have a confidentiality agreement, as well as the main conditions that this agreement must contain. To avoid confusion about what is confidential information and what is a trade secret, you should provide a definition of what confidential information would be and what would be considered a trade secret. The industry is in favour of the previous approach, but I can imagine two reasons for determining the duration of the agreement. While this may not be the clearest answer, the key here is that the term “NOA” and the “duration” of the confidentiality obligation are two separate issues that should be clearly addressed and clarified in your agreement. The most critical factor is the type of information to be protected, and this should be your first thought. The terms of your agreement should be realistic as to the duration of the project or cooperation. Finally, your company may need a confidentiality agreement if it enters into a co-marketing relationship as an e-commerce company with the operator of a complementary website or a similar strategic alliance. In common law countries such as New Zealand, Australia and England, it is normal for confidentiality agreements that continue to apply to information as long as it remains confidential. In principle, this is consistent with the protection afforded to confidential information under fair rules on breaches of trust rights.

If the information can remain confidential forever, it should be properly protected. Second, confidentiality obligations are often part of a broader agreement with a “term” provision; The duration of the duty of confidentiality should be abolished. This sometimes requires a hybrid agreement, the obligation of secrecy is also related to the duration: for the duration of the agreement and three years after, Acme keeps the information confidential. Confidentiality agreements should not be long and complicated. In fact, the good ones usually run no more than a few pages. AJ Park Law Principal Mark Hargreaves and Senior Partner Grace Thomas-Edmond discuss whether confidentiality agreements with deadlines protect trade secrets. Although commonly used, it is worth thinking about why we should accept deadlines and how to include a deadline in a confidentiality agreement while providing adequate protection of trade secrets, they write. In other words, if you design a usage agreement during project development, your relationship with the developer may end once the project is completed, but you may want the confidentiality of the information you share to remain confidential for a long time – for example. B if the product is actually put on the shelves.

For example, confidentiality agreements can be used in the evaluation or participation of a corporate or marketing advisor or agency when the recruitment company must necessarily disclose confidential information to enable the consultant to perform the task.