The Proprietary Information Exchange Agreement is essential for businesses and organizations operating in Hong Kong that need to share sensitive or confidential information while ensuring legal protection. This document is commonly used before entering into detailed business discussions, during due diligence processes, or when engaging in collaborative projects where proprietary information needs to be shared. It addresses key requirements under Hong Kong law, including data privacy obligations, confidentiality duties, and intellectual property protection. The agreement is particularly crucial given Hong Kong's position as a major international business hub, where cross-border information exchange is common. It serves to protect trade secrets, technical know-how, customer data, and other confidential information while enabling necessary business communications.
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1. Parties: Identifies and provides full details of all parties to the agreement
2. Background: Explains the context and purpose of the agreement, including the nature of the relationship between the parties
3. Definitions: Defines key terms used in the agreement, particularly 'Confidential Information', 'Permitted Purpose', and 'Authorized Recipients'
4. Scope of Confidential Information: Clearly defines what information is covered by the agreement and any specific exclusions
5. Obligations of Confidentiality: Sets out the core obligations regarding handling and protecting confidential information
6. Permitted Disclosures: Specifies circumstances under which confidential information may be disclosed and to whom
7. Security Measures: Details the required security measures for protecting confidential information
8. Return or Destruction of Information: Procedures for handling confidential information upon termination or request
9. Duration and Termination: Specifies the term of the agreement and termination provisions
10. Breach and Remedies: Outlines consequences of breach and available remedies
11. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, entire agreement, etc.
1. Data Privacy Compliance: Additional provisions for compliance with PDPO when personal data is involved
2. Intellectual Property Rights: Specific provisions regarding IP ownership and licenses when IP-sensitive information is shared
3. Export Control: Required when information exchange may be subject to export control regulations
4. Competition Law Compliance: Needed when parties are competitors or information exchange could raise competition concerns
5. Group Company Rights: Used when allowing sharing with group companies or affiliates
6. Survivorship: Specific provisions about which obligations survive termination
7. Insurance Requirements: When specific insurance coverage is required for information handling
8. Audit Rights: When one party requires rights to audit the other's compliance
1. Schedule 1 - Description of Confidential Information: Detailed list or categories of information covered by the agreement
2. Schedule 2 - Authorized Recipients: List of individuals or roles authorized to receive confidential information
3. Schedule 3 - Security Protocols: Detailed security requirements and procedures for handling information
4. Schedule 4 - Information Handling Procedures: Specific procedures for marking, storing, and transmitting confidential information
5. Appendix A - Form of Confidentiality Undertaking: Template undertaking for authorized recipients to sign
6. Appendix B - Notice Requirements: Contact details and procedures for required notices under the agreement
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