- It places the party receiving the information on notice that you consider the information confidential.
- It specifies what information is defined as confidential, which helps prevent misunderstandings and resolve disputes.
- It can establish a method for resolving disputes—for example, mandating that the parties arbitrate any disputes instead of going to court.
- It can guarantee that any dispute will be decided in your geographic area.
- It can establish which state’s laws will govern disputes. For example, if you are entering into an agreement with a company in another state, you may prefer to have disputes resolved under your state’s trade secret laws rather than the laws of the other party’s state.
- In some cases, you may have a longer period of time to file a lawsuit than if you did not have a signed agreement.
Monday, July 18, 2011
How Do You Protect Trade Secrets?
trade secret. To qualify, the info you're trying to protect must not be generally known or ascertainable through legal methods and must provide you with a competitive advantage or have economic value. In some ways, trade secrets are like tamagotchis -- remember those little creatures from Japan that needed constant digital tending or they would pass on. If you have a trade secret, you must always conceal it, disclosing it only to those bound to maintain confidentiality. An NDA helps to conceal a secret because it is an agreement promising to keep a secret. If broken, the agreement provides remedies against the discloser. Other advantages of using an NDA are: