Non-disclosure Agreements

June 24, 2009
Intellectual Property News and Interesting Facts

Trade secrets are by definition not disclosed to the world at large. Instead, owners of trade secrets seek to keep their special knowledge out of the hands of competitors through a variety of civil and commercial means, not the least of which is the use of non-disclosure agreements (NDA) and non-compete clauses.

In exchange for the opportunity to be employed by the holder of secrets, an employee will sign an agreement not to reveal his or her prospective employer’s proprietary information.

Often, the employee will also sign over rights to the ownership of own intellectual works produced during the course (or as a condition) of their employment.

Violation of the agreement generally carries the possibility of stiff financial penalties.