Blog Layout

Protecting Trade Secrets with Non-Disclosure Agreements

protecting trade secrets picOne of the most valuable assets many businesses have is its “idea” or thing that makes it different from the competition. Whether you have invented a unique product or you offer a specialized service, it is important to safeguard it from being copied by others. Failure to do so could cost you a substantial amount of money!

How do you protect your trade secrets ? There are different measures you can take, but a simple tool is the non-disclosure agreement (NDA). This type of contract should be signed by employees, independent contractors and any other third-parties with access to your trade secrets. A NDA, also commonly called a confidentiality agreement, legally binds the parties to protect your non-public information. Further, if the third-party violates the NDA, your business will be entitled to recover damages and other remedies at law.

Each NDA should be drafted to fit the needs to your specific business. Below are examples of some of the important provisions that you should consider including in your NDA:

  • The trade secret or protected information should be clearly identified.
  • The agreement should outline any situations where the confidential information is allowed to be disclosed. For example, to lawyers, accountants, insurers and other similar professionals.
  • The legal remedies available to the injured party when a breach occurs should be outlined in detail.
  • The NDA should include other traditional contract clauses such as setting forth the law that will govern the contract, where disputes will be heard, whether the contract can be assigned and other such stipulations.

Having NDA’s in place is an effective way to protect your business and its trade secrets. All it takes is one disclosure to the wrong party and you will no longer be set apart from your competitors.

If you are interested in learning more about non-disclosure agreements, contact the legal team at The Swenson Law Firm for assistance.

Share by: