Keeping Secrets: Trade Secrets And Confidentiality Agreements

If you are a business owner or an entrepreneur, you have probably encountered non-disclosure agreements or agreements with a similar title: confidentiality agreements, CAs, NDAs or confidential disclosure agreements. These agreements are common in many commercial enterprises and transactions: from licensing deals to franchise agreements, from the manufacturing sector to the food services industry.

Non-disclosure agreements are designed to impose confidentiality obligations on one or more parties to a transaction. Confidential or "trade secret" information may be disclosed during early-stage negotiations, even before a formal contractual relationship is concluded. Or it may be disclosed in the course of an ongoing contract: for example, a licensing or manufacturing agreement. Regardless of the specific circumstances, you should consider the following points as you review these documents in the course of your business.