What to include in a nondisclosure agreement

Glenn W. Peterson

When you hire someone to work for your California business, chances are, you do so because you find this person trustworthy, capable and credible. Regrettably, however, employer-employee relationships sometimes turn sour. If you do not take proper precautions to protect yourself and your business from the outset, you may find that your employees eventually move on and share your insights and intellectual property with your competitors. At Peterson Watts Law Group, LLP, we have helped many business owners make efforts to protect their trade secrets and intellectual property, helping them avoid potential problems before they lead to litigation.

According to Forbes, you may want to consider drafting a clear nondisclosure agreement when you face any number of different scenarios. You may, for example, choose to do so if you are presenting a new invention, idea or process to a potential business partner or investor. You may want to do the same if you typically grant your workers access to sensitive information about your business, or if you are sharing marketing or financial information relating to your company with someone who might potentially buy it.

Regardless of your reasoning for drafting a nondisclosure agreement, most strong ones include specific common elements. For starters, your agreement needs to clearly stipulate to whom it applies, and it also must comprehensively cover the information your business deems confidential.

It is also advisable to include specifics about any company information that does not fall under the terms of the confidentiality agreement. Additionally, your nondisclosure agreement should address exactly how long the other party must adhere to its terms. You can find more about protecting intellectual property by visiting our webpage.