Small Business Confidentiality Agreement for the United States

Small Business Confidentiality Agreement Template for United States

A legally binding agreement designed for small businesses in the United States to protect their confidential information when shared with third parties. This agreement outlines the obligations of receiving parties to maintain secrecy, establishes handling procedures for confidential information, and provides remedies for unauthorized disclosure. It incorporates provisions from both federal and state trade secret laws, including the Defend Trade Secrets Act.

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Small Business Confidentiality Agreement

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What is a Small Business Confidentiality Agreement?

The Small Business Confidentiality Agreement serves as a critical tool for protecting proprietary information in business relationships. This document is essential when small businesses need to share sensitive information with contractors, vendors, potential partners, or employees. It ensures compliance with US federal and state trade secret laws while providing clear guidelines for handling confidential information. The agreement is particularly important for small businesses that may lack extensive legal resources but need robust protection for their intellectual property and trade secrets.

What sections should be included in a Small Business Confidentiality Agreement?

1. Parties: Identification of the disclosing and receiving parties

2. Background: Context and purpose of the agreement

3. Definitions: Definition of confidential information and other key terms

4. Confidentiality Obligations: Core obligations regarding protection and non-disclosure of confidential information

5. Permitted Disclosures: Circumstances under which confidential information may be disclosed

6. Term and Termination: Duration of agreement and conditions for termination

7. Return of Information: Requirements for returning or destroying confidential information

8. Remedies: Legal remedies available in case of breach

9. General Provisions: Standard legal provisions including governing law, jurisdiction, and entire agreement

What sections are optional to include in a Small Business Confidentiality Agreement?

1. Non-Compete Provisions: Optional restrictions on competition, used when protecting against competitive use of information

2. Non-Solicitation: Optional restrictions on soliciting employees or customers, used when protecting business relationships

3. Whistleblower Provisions: Immunity notices for reporting violations, required when agreement involves employees

4. Representatives and Affiliates: Provisions governing disclosure to and obligations of representatives and affiliated entities

What schedules should be included in a Small Business Confidentiality Agreement?

1. Schedule A - Confidential Information: Detailed list 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 Procedures: Specific procedures and protocols 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

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Industries

Defend Trade Secrets Act (DTSA) 2016: Federal law providing nationwide protection for trade secrets and requiring specific notice of whistleblower immunity provisions in confidentiality agreements

Economic Espionage Act 1996: Federal criminal law establishing penalties for the theft or misappropriation of trade secrets

FTC Regulations: Federal Trade Commission guidelines governing unfair competition practices and protection of confidential information

Uniform Trade Secrets Act (UTSA): State-level uniform law (adopted with variations by most states) defining trade secrets and establishing civil remedies for misappropriation

State Contract Laws: State-specific requirements for contract formation, consideration, and enforcement of confidentiality agreements

State Non-Compete Laws: State-specific regulations governing the scope and enforceability of non-compete provisions in confidentiality agreements

Employee Rights Protection: Federal and state laws protecting employee rights in the context of confidentiality agreements, including whistleblower protections

Industry Regulations: Sector-specific regulations that may impact confidentiality requirements (e.g., healthcare HIPAA, financial services regulations)

Statute of Limitations: Time limits for bringing legal actions related to breach of confidentiality, varying by state and type of claim

Reasonable Protection Measures: Legal requirement to implement reasonable measures to protect confidential information in order to maintain trade secret protection

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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