Confidentiality agreements can protect sensitive information

Maryland businesses who have important and sensitive information as part of their business process may be reluctant to engage in ventures with other companies. They may be afraid that their proprietary technology or information could be compromised. However, they may also need share that information with other parties. They may need consultation from an outside company or they may need to share that information as part of their sales process to a potential client. One effective way to manage this problem is with a confidentiality agreement.

A confidentiality agreement can help two businesses work together without fear of information being compromised. It can also reduce the risk of future business litigation. An agreement generally specifies who is disclosing the information and who is receiving it. It should also specify exactly which information is confidential and it should define exactly what the term confidential means. In some agreements, confidential could mean that the information has to stay within the company and out of public domain. In other agreements, terms could be more narrow and state that only certain departments or individuals can have access to the information.

Another important point in confidentiality agreements is their duration. It’s important to define the time period in which information could be disclosed and the time period in which it must remain confidential. Each of those periods should be defined with specific start and end dates.

There are often some exceptions to the agreement. One common provision states that there is no breach if the information became public via some method for which the recipient wasn’t responsible. Confidentiality agreements are flexible enough that they can cover virtually anything. Both parties should sufficiently review their own goals and priorities so that they can negotiate an agreement from an informed and confident position.

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