A Trade Secret Confidentiality Agreement is essential when businesses need to share valuable proprietary information while maintaining its secrecy. This document, governed by U.S. federal and state laws, establishes legally binding obligations for protecting trade secrets, defining permitted uses, and setting consequences for unauthorized disclosure. It's particularly crucial for business relationships involving intellectual property, strategic partnerships, employee relationships, and vendor contracts. The agreement should comply with both the federal Defend Trade Secrets Act and applicable state laws.
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1. Parties: Identification of the disclosing and receiving parties
2. Background: Context of the agreement and purpose for sharing trade secrets
3. Definitions: Key terms including 'Trade Secrets', 'Confidential Information', 'Permitted Purpose'
4. Confidentiality Obligations: Core obligations regarding protection and non-disclosure of trade secrets
5. Permitted Use: Scope of authorized use of trade secrets
6. Term and Termination: Duration of agreement and termination provisions
7. Return of Information: Requirements for returning or destroying confidential information
1. Non-Competition: Restrictions on competitive activities (when additional protection against competition is required and permissible under state law)
2. Non-Solicitation: Restrictions on soliciting employees or customers (when protecting against poaching is relevant)
3. Whistleblower Provisions: DTSA-required immunity notice (mandatory when agreement involves employees or contractors)
1. Schedule of Trade Secrets: Detailed list of specific trade secrets covered by the agreement
2. Security Protocols: Specific procedures for handling and protecting trade secrets
3. Authorized Personnel: List of individuals authorized to access trade secrets
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