NDAs: Definition Of Confidential Information

Parties entering into a non-disclosure agreement (NDA) should define the scope of the contract. Hence, they should determine what is encompassed by the term "confidential information." Clarifying the parameters of the NDA could protect the parties from liabilities and could further ensure that the confidential information that needs to be protected is covered by the agreement.

Generally, the company disclosing information would want to broaden the subject matter that is included under "confidential information." On the other hand, the company receiving confidential information would usually want to limit the term. To serve the interests of both parties, businesses commonly agree that the following are excluded from the definition of confidential information: