Protecting one’s business requires a multifaceted approach. Nondisclosure agreements can be an important part of this approach, and are exceptionally useful for protecting intellectual property. Georgia business owners may want to consider some of the following benefits of using a nondisclosure agreement, as well as what information must be included.
Protecting trade secrets
Trade secrets are not part of the public domain and therefore cannot be protected by patents. The only way to truly protect a trade secret is to keep it just that — secret. Business owners must also take steps to ensure that trade secrets are kept private; otherwise, they will not be afforded any protection. Creating a nondisclosure agreement that prevents employees from disclosing this information is generally an excellent choice.
The elements of a nondisclosure agreement
Georgia business owners should pay careful attention when creating their nondisclosure agreements. To be enforceable, an agreement should typically include five elements. These basic elements are:
- The definition of any confidential information
- Exclusions to confidential information
- Duties and obligations of the party trusted with the confidential information
- How long the agreement is enforceable
- Miscellaneous provisions
Enforcing a nondisclosure agreement could be tricky if it is lacking any of these elements. It might also be difficult to enforce an agreement if the wording is not clear or if there is any room for ambiguity. This means that if trade secrets are at the root of a business’ success, the owner should pay particular care and attention to the process of creating concise and enforceable nondisclosure agreements.