-In the highly competitive business world of today, it is creativity, innovation, and information that separate the best from the rest. This highlights why it is very important that you get a confidentiality agreement today to protect the very essence of your small business in order to have an edge in this competitive market.
So What Is Confidentiality Agreement?
Simply put, a confidentiality agreement is a legally documented agreement between two or more parties in which the parties involved are aware of and are committed to keeping some vital information confidential. It is done with a confidentiality agreement form which is duly drafted and signed for authenticity by appropriate legal bodies.
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What can a confidentiality agreement do for your business?
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It can help you ensure that your company’s confidential information and innovation are protected so that they don’t fall into a fierce opponent’s hand.
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It can also help you ensure that the employees and outsourced staff who have access to your vital business secrets keep it within themselves and the company, knowing full well that they can be prosecuted for divulging such secrets. It also keeps them from using patented ideas and concepts for other related projects.
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It can also help you protect your business ideas, strategies, and other industry secrets that make you unique. It is rumored that only two people know the exact formula for the Coca-Cola beverage drink, even though this is not possible, but it still highlights how businesses jealously guide their business secrets that put food on their tables.
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Who Should You Enter Into a Confidentiality Agreement with?
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With the employees in the business;
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With service providers, consultants, and suppliers who may be privy to company secrets.
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With franchisees;
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With companies or individuals that are in partnership with your business;
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With investors.
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What happens when a Confidentiality Agreement is breached?
When a party to the Non-Disclosure Agreement breaches it, the repercussion is mostly payment of monetary damages. Obtainable damages include equitable damage which is for loss of revenue, legal fees and additional charges that may be deemed fit by the presiding court. In addition to the charges, the violation party may even face other court injunctions. It is important to mention that sanctions must be equivalent or even more than the result of leaking the Intellectual Property.
The Non-Disclosure Agreement form can easily be obtained online for free. You may download a confidentiality agreement in Alabama, Michigan or any other state of USA on this website.