| In today's business world, confidentiality and | | | | lawyer or by using a legal document template to |
| non-disclosure agreements are becoming | | | | draw up the agreement. |
| increasingly important for businesses looking to | | | | Some of the things that need to be included or |
| protect themselves from damaging leaks. Most | | | | defined in the agreement are: |
| employee contracts will contain some kind of | | | | The owner of the information (typically the |
| confidentiality agreement as standard, but these | | | | company or owner of the company) and the |
| kinds of agreements are very important if you | | | | receiver of the information (the contractor or |
| share information with another company for any | | | | outside company that will be working with you) |
| reason, or if you hire outside contractors to work | | | | Definitions of the terms used in the |
| for your business. You may soon discover that a | | | | agreement (for example, "information", |
| reliable confidentiality agreement could be one of | | | | "disclosure", "public access", "intellectual property" |
| the most valuable business documents that you | | | | and so on) |
| have! | | | | Reasons why the non-disclosure agreement is |
| Many firms underestimate the damage that can | | | | necessary |
| be done by unauthorized disclosures of | | | | Definition of what sort of information is |
| information, and it can take just one unscrupulous | | | | covered by the agreement |
| or careless individual to do thousands of pounds | | | | Definition of permissible use of the |
| worth of damage to your company. | | | | information |
| Why do I need a non-disclosure agreement? | | | | Any exceptions to the agreement |
| Potentially damaging information that can be | | | | Any penalties to be imposed if the |
| leaked from a company includes: | | | | agreement is breached |
| Business documents, plans and strategies | | | | What happens if someone breaks one? |
| Passwords and other access information | | | | Anyone who breaks a non-disclosure agreement |
| Technical diagrams, company software | | | | leaves themselves vulnerable to legal action, and |
| programs, and so on | | | | they may face an injunction, damages and orders |
| Research results | | | | to account for profits. If a compensation amount |
| Financial information | | | | was specified in the agreement this can be |
| Legal documents | | | | requested, but note that different countries have |
| Confidential correspondence | | | | different regulations about how much you are |
| Personal information of employees | | | | allowed to claim, and a judge is likely to overrule |
| Depending on the nature of the leak, improper | | | | any excessive compensation demands. Essentially, |
| disclosure of one of the above could cause you a | | | | a non-disclosure agreement acts as an effective |
| minor PR problem, sabotage an entire project or | | | | deterrent against a breach of confidentiality, and |
| even irreparably damage your business. If you | | | | puts you in a strong legal position if a breach does |
| haven't done so already, you need to sit down | | | | occur. |
| and consider how your internal company | | | | What exceptions are there? |
| information could be used against you, and what | | | | Non-disclosure agreements may protect you from |
| data needs to be covered by your company's | | | | careless or unscrupulous companies and |
| non-disclosure agreement. | | | | contractors, but they won't protect you from the |
| How do I implement an agreement? | | | | law - they can be overruled legally if there is a |
| A non-disclosure agreement can be implemented | | | | legitimate reason to do so, for example as part |
| as a separate document or as part of an | | | | of a court case. They can also be rendered invalid |
| employee contract. In either case, it is worth | | | | if they are incorrectly worded, so make sure that |
| making sure that the agreement is correctly | | | | you get proper legal documents that clearly define |
| worded and legally binding, either by consulting a | | | | the terms and conditions of the agreement. |