Recognition of irreparable damage. Compensation for breach of confidentiality under the breach of contract theory is generally difficult to quantify and the loss cannot be fully measured in monetary damages. Thus, the damage is irreparable. For these reasons, it is useful for the receiving party to acknowledge that a breach of the Agreement would result in irreparable harm to the disclosing party. When you invent a product, you may want to offer it to potential manufacturers or distributors. While this increases your chances of getting a commercially successful product, it also increases the risk of someone stealing your invention. While the best way to protect your invention is through a patent, sometimes you may not get a patent or want to discuss business agreements before going through the patent process. If you do not have patent protection and are unable to get a manufacturer or distributor to sign a non-disclosure agreement, you may want to establish an implied confidential relationship to protect your rights to your invention. Ken joined LegalMatch in January 2002.

Since his arrival, Ken has worked with a variety of talented lawyers, paralegals and law students to make LegalMatch`s Law Library a comprehensive source of legal information written to be accessible to all. Prior to joining LegalMatch, Ken practiced law in San Francisco, California for four years, handling a wide range of cases in areas as diverse as family law (divorce, custody and child support, injunctions, paternity), real estate (real estate, landlord/tenant litigation for residential and commercial real estate), criminal law (misdemeanors, crimes, minors, traffic violations), bodily injury (car accidents, medical malpractice, slip and fall), entertainment (admission agreements, copyright and trademark registration, license agreements), labor law (wage claims, discrimination, sexual harassment), commercial law and contracts (breach of contract, drafting of contracts) and bankruptcy of San Francisco (Chapter 7 Personal Bankruptcies). Ken holds a J.D. from Golden Gate University School of Law and a B.S. in Business Administration at Pepperdine University. He is admitted to the California Bar and the U.S. District Court for the Northern District of California. Ken is an active member of the American Bar Association, the San Francisco Bar Association and the California Lawyers for the Arts. For example, a company cannot use a confidentiality agreement to hide information that it is polluting a local waterway and endangering the health of residents. Third, confidentiality agreements define exactly what information can and cannot be disclosed.

This is usually achieved by explicitly classifying unavailable information as confidential or proprietary. The definition of this term is, of course, the subject of negotiation. As you can imagine, the company or person disclosing the confidential information (the “discloser”) wants the definition to be as complete as possible; on the other hand, the company that receives the confidential information (the “Recipient”) wants to see the narrowest possible definition. Cessation and abstention clause. This gives the disclosing party the right to prevent the other party from violating the confidentiality agreement before a breach occurs through a court order or injunction. A thorough understanding of confidentiality agreements and their legality will help you, whether you issue confidentiality agreements to others or are encouraged to abide by them. In the context of employment, confidentiality agreements are advantageous for an employer because they allow the free flow of confidential information within an organization in order to maximize business efforts, but at the same time prohibit employees from using or disclosing confidential information such as customer lists, strategic plans, know-how, technologies, marketing strategies and exclusive relationships outside their remit. They also work the same way in other contexts – so information can be shared with authorized parties without fear of it being brought into the public eye. .