Basic Confidentiality Agreement Template for United States

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Key Requirements PROMPT example:

Basic Confidentiality Agreement

"I need a Basic Confidentiality Agreement to protect proprietary software development information that will be shared with an external development contractor, with the agreement to last for 3 years starting from March 2025."

Document background
The Basic Confidentiality Agreement serves as a fundamental legal instrument for protecting proprietary and sensitive information in business relationships. It is commonly used when parties need to share confidential information during business discussions, negotiations, or collaborations. This agreement, governed by U.S. federal and state laws, defines what constitutes confidential information, establishes the receiving party's obligations, and provides legal remedies in case of unauthorized disclosure. It's essential for maintaining competitive advantage and protecting intellectual property in various business contexts.
Suggested Sections

1. Parties: Identification of the disclosing and receiving parties

2. Background: Context and purpose of the confidentiality agreement

3. Definitions: Key terms including 'Confidential Information', 'Purpose', 'Representatives'

4. Confidentiality Obligations: Core obligations regarding use and protection of confidential information

5. Term and Termination: Duration of agreement and termination provisions

6. Return of Information: Obligations regarding return or destruction of confidential information

Optional Sections

1. Specific Industry Compliance: Additional provisions for regulated industries such as healthcare (HIPAA) or financial services (GLBA)

2. International Transfer: Provisions for cross-border information sharing and compliance with international data protection laws

3. Non-Solicitation: Restrictions on soliciting employees or customers during and after the agreement term

Suggested Schedules

1. Schedule 1 - Description of Confidential Information: Detailed list or categories of information covered by the agreement

2. Schedule 2 - Authorized Representatives: List of individuals authorized to receive and handle confidential information

3. Schedule 3 - Security Protocols: Specific procedures and requirements for handling and protecting confidential information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Defend Trade Secrets Act (DTSA): Federal law enacted in 2016 that provides federal protection for trade secrets and creates a uniform standard for trade secret protection across the United States

Economic Espionage Act: Federal law from 1996 that criminalizes trade secret theft and provides federal protection against economic espionage

Uniform Trade Secrets Act (UTSA): Model law adopted by most states that provides consistent state-level protection for trade secrets and defines trade secret misappropriation

National Labor Relations Act (NLRA): Federal law that protects employees' rights to discuss working conditions and ensures NDAs don't infringe on protected labor activities

Whistleblower Protection Laws: Federal and state laws that protect individuals who report violations of law to government agencies, requiring specific carve-outs in NDAs

State Contract Laws: Laws governing contract formation, enforcement, and interpretation specific to each state, including consideration requirements and duration provisions

HIPAA: Healthcare privacy law that may affect confidentiality agreements involving protected health information

Gramm-Leach-Bliley Act: Federal law governing confidentiality of financial information that must be considered in NDAs involving financial services

GDPR Compliance Requirements: European Union data protection regulations that may affect NDAs involving EU resident data or cross-border data transfers

First Amendment Considerations: Constitutional protections for free speech that may limit the scope and enforceability of confidentiality agreements

Public Policy Exceptions: Legal doctrine that may void NDAs that excessively restrict disclosure of information in the public interest

Statute of Limitations: Time limits set by state law for bringing legal actions related to breach of confidentiality agreements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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