A clear definition avoids confusion as to what the recipient should keep confidential. Even a broad definition can still be clear. For example, the defense contractor can identify that all information that each employee receives in the course of their work must be kept confidential. Alternatively, the investor`s NDA is much more specific. In any case, the confidentiality agreement must contain a clear definition of what is confidential. A good confidentiality agreement starts with a clear definition of confidential information. For example, a defense company`s confidentiality agreement may stipulate that everything about the nature of the employee`s work is confidential: his or her plans, his work product — even the fact that he or she is employed for the contractor. Rather, the use of a confidentiality agreement is in the context of employment. There is a breach of confidentiality and confidentiality agreements must work.
If the investor shares the startup`s market research with its competitors, what damages can the startup claim? All the investments he didn`t have? The point of a confidentiality agreement is not to sanction the breach of confidentiality. Instead, think of your confidentiality agreement as clear evidence of a relationship and a big stick to silence someone. Confidentiality agreements work, but only if they are executed correctly. Define your confidential information and be sure to indicate what the recipient can use the information for. .
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