Confidentiality And Proprietary Information Agreement for the United States

Confidentiality And Proprietary Information Agreement Template for United States

A legally binding agreement under U.S. law that establishes obligations for protecting confidential and proprietary information shared between parties. This agreement defines what constitutes confidential information, sets forth the duties of the receiving party, establishes the duration of confidentiality obligations, and provides remedies for breach. It incorporates federal and state trade secret protections and can be customized for specific industry requirements.

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What is a Confidentiality And Proprietary Information Agreement?

The Confidentiality and Proprietary Information Agreement is essential when parties need to share sensitive business, technical, or commercial information while maintaining its confidentiality. This document, governed by U.S. federal and state laws, is commonly used during business negotiations, employment relationships, or potential partnerships. It provides legal protection for trade secrets, intellectual property, and other proprietary information, while establishing clear guidelines for information handling and consequences for unauthorized disclosure.

What sections should be included in a Confidentiality And Proprietary Information Agreement?

1. Parties: Identification of the disclosing and receiving parties, including full legal names and addresses

2. Background: Context and purpose of the agreement, including the nature of the business relationship

3. Definitions: Definition of key terms including Confidential Information, Trade Secrets, Proprietary Information, and any other relevant terms

4. Scope of Confidentiality: Detailed description of what information is covered and the required level of protection

5. Permitted Uses: Specific authorized uses of confidential information and any restrictions on use

6. Protection Measures: Required security measures and standards for protecting confidential information

7. Term and Termination: Duration of confidentiality obligations and conditions for termination

8. Return of Information: Requirements and procedures for returning or destroying confidential information

9. Remedies: Legal remedies available in case of breach, including injunctive relief

10. General Provisions: Standard contract clauses including governing law, jurisdiction, and entire agreement

What sections are optional to include in a Confidentiality And Proprietary Information Agreement?

1. Non-Solicitation: Provisions preventing solicitation of employees or customers, used when protecting business relationships is crucial

2. Non-Competition: Restrictions on competitive activities, included when sharing highly sensitive business information

3. Industry Compliance: Specific regulatory compliance requirements (e.g., HIPAA, GDPR), used when dealing with regulated industries

4. Whistleblower Protection: Provisions protecting rights to report violations to government agencies, required by federal law

5. Assignment Rights: Rights and restrictions regarding assignment of the agreement, used in corporate transactions

What schedules should be included in a Confidentiality And Proprietary Information Agreement?

1. Schedule A - Description of Confidential Information: Detailed categorization and description of specific confidential information covered by the agreement

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

3. Schedule C - Security Protocols: Specific security measures and protocols required for protecting the confidential information

4. Schedule D - Excluded Information: List of specific information explicitly excluded from confidentiality obligations

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

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Industries

Federal Trade Secrets Laws: Key federal legislation including the Defend Trade Secrets Act (DTSA) of 2016 and Economic Espionage Act of 1996, which provide federal protection for trade secrets and remedies for misappropriation

State Trade Secret Laws: State-level protections including the Uniform Trade Secrets Act (UTSA) and state-specific variations that govern trade secret protection at the state level

Employment Laws: National Labor Relations Act (NLRA) and state-specific employment laws, including whistleblower protection provisions that may impact confidentiality agreements

Intellectual Property Laws: Federal Copyright Act, Patent Act, and trademark laws that may intersect with confidential information protection

Contract Law Principles: State contract laws governing consideration, formation, enforceability, duration, and remedies that affect the validity and enforcement of confidentiality agreements

Industry-Specific Regulations: Sector-specific laws like HIPAA (healthcare), Gramm-Leach-Bliley Act (financial), and Federal Acquisition Regulations (government contracts) that impose additional confidentiality requirements

Relevant Case Law: Recent court decisions regarding scope of confidentiality provisions, reasonable restrictions, and enforcement of NDAs that establish precedents

Public Policy Restrictions: Limitations on confidentiality provisions regarding illegal activities, sexual harassment, discrimination, and public safety issues that may void certain confidentiality obligations

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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