Violation of a confidentiality agreement has serious consequences for the parties involved. Among the measures that can be taken and the possible consequences are: the law on the protection of confidential information is derived from the principle of the common law of justice. The just doctrine of trust or confidentiality is invoked when confidential information cannot be protected by intellectual property rights. B such as patents or copyrights. However, it is advisable to apply a confidentiality agreement rather than relying on common law principles. If there is a discussion about a confidentiality agreement, you can also hear the document called the confidentiality agreement or NOA. If information is shared in more than one direction, a mutual agreement is used. Note that a mutual confidentiality agreement does not necessarily have to cover the same information in both directions: Z.B. may share financial information and the other may be product-related information. Check to see if the provisions of the agreement are able to correct or compensate for a breach of the recipient. For example, it is very difficult to place a monetary value on a business idea, so it may be difficult to sue for damages.
A more appropriate measure would be to ask the operator for a court injunction preventing the recipient from using the information. However, if the information has been made public in the meantime, its commercial potential may have been lost. Unilateral confidentiality agreements contain only obligations for one of the parties. This type of agreement is common when you are developing a new product or service and looking for potential suppliers or partners. When you seek advice from MDC Legal, you are aware of the confidentiality obligations and understand the importance of protecting your company`s confidential information. Reciprocal confidentiality agreements work by imposing confidentiality obligations on both parties to the agreement, a kind of tit-act of confidentiality. Your recipient cannot disclose your confidential information and you cannot disclose your information. These types of agreements are common in R and D and investment, in which both parties will share confidential aspects of their respective operations. This leaves you with a confidentiality agreement to protect everything else.
Many venture capitalists looking for entrepreneurial ideas will be reluctant to sign a confidentiality agreement. Here, the entrepreneur has the choice between the confidence of the potential investor and the risk of his idea or the sharing of minimal information – a real teaser. Some British entrepreneurs feel that they do not need a confidentiality agreement, either because they can trust the party to whom they provide economically sensitive information or because they believe that the law will protect their activities without a confidentiality agreement being required. It is clear that the content of the agreement must be carefully considered to ensure that it covers all possible contingencies. An agreement must be considered from the point of view of both the recipient of the advertisement and the recipient. If you must disclose confidential information as part of a potential business transaction or to employees, a confidentiality agreement is an essential business tool to protect your interests. A confidentiality agreement provides legal reasons to protect your data.