Costello Law Corporation
We Can Help You, Call Us Today
916-520-3360
This Attorney is Lead Counsel Rated. Click here for more Information.

Nondisclosure agreements: 5 common uses

Employees are often asked to sign nondisclosure agreements when they're hired. In essence, the owners of the company understand that employees need access to certain sensitive information in order to be effective, but they also know that employees come and go. They don't want them to take valuable information that the company holds with them when they leave.

Five common things that nondisclosure agreements protect include:

  • Personal health information for patients, if used in a medical or laboratory setting.
  • Information that may be embarrassing to members of the company, even if it is not illegal -- such as a consensual and yet extramarital affair.
  • Important trade secrets that give the company an edge and perhaps give it the lion's share of its overall value. Examples could be everything from sales leads to recipes in food production.
  • Any information about new developments, from potential investors to new inventions.
  • Sensitive intellectual property that the company has to share with contractors, employees, business partners and others.

For instance, an employee may need to know the exact process that is used to make the company's main product. However, the best way to stop competition is to not let the knowledge of that specific process leave the company. The nondisclosure agreement can help to ensure that the employee does not sell that information to a third party or leave the company and start a competing business using what they learned on the job.

When employees sign nondisclosure agreements, they then have a legal obligation to uphold them. If they breach them in the future, it's important for those who suffer financial harm to know what options they have.

No Comments

Leave a comment
Comment Information

Contact Us Today

To protect your valuable idea, contact our lawyers at Costello Law Corporation to set up an initial consultation. We are ready to assist you in any intellectual property issue.

Get Started

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Map & Directions

Costello Law Corporation

Costello Law Corporation
2267 Lava Ridge Court
Suite 210
Roseville, CA 95661

Phone: 916-520-3360
Fax: 916-441-4254
Map & Directions

Email Us