A lot of clients, particularly those based in the US, ask us
about confidentiality agreements that include a time limit on the
confidentiality obligations (usually between three and five years).
Time limits are particularly common in the tech sector, where
technology tends to move and evolve more quickly.
Although commonly used, it is worthwhile to stop and consider
why we should accept time limits, and how we can include a time
limit in a confidentiality agreement while also providing adequate
protection for trade secrets.
Why include time limits at all?
There are both legal and commercial justifications for including
time limits in confidentiality agreements.
The commercial reasoning is that large companies want to have a
clear cut-off for their confidentiality obligations. They don't
want to have to track confidential information indefinitely, as
that can be logistically difficult to do in a large
organisation.
