If you`re running a business or you`re about to start one, you know there are many cases where you share confidential information with another party. And this fear that your data or information will be misused. But hey, there`s a solution right so you can let go of all your worries and focus on your stuff. These are these three great letters: NDA or confidentiality agreement! Keep reading this article to master the term and create a safe ecosystem for your business. Embezzlement – The theft or illegal disclosure of trade secrets. In some cases, a company facing your confidentiality agreement may request the right to exclude information that has been independently developed after disclosure. In other words, the company may wish to amend subsection (b) in “(b) discovered or, regardless of the receiving party, established before or after disclosure by the disclosed party”. In DB Riley, Inc. v. AB Engineering Corp.
at the US District Court for the District of Massachusetts (Case No. 977 F. Supp. 84 (D. Mass. 1997)) decided on 18 September 1997 that the case concerned the applicant`s allegation that the defendant had unfairly acquired the applicant`s business information and in spite of contractual agreements; By prohibiting disclosure by any means that had existed between them prior to the prosecution, the defendant used trade secrets to gain a “competitive advantage”. Despite this finding, the Tribunal ruled in favour of the defendant and stated that the complainant`s fault was that he was unable to take appropriate measures to preserve confidentiality. Since the applicant`s confidentiality agreement was valid only for a limited period (in this case for a period of only 10 years), the applicant could not claim “eternal vigilance” over the company`s business secrets.
Thus, because of the forfeiture clause contained in the confidentiality agreement, the General Court did not refer an action for interim measures to the applicant for lack of merit in his action. This case clearly describes how certain business practices (after time) can affect the business practices of NDAs and highlights the importance of companies exercising their power to enter into eternal/indeterminate agreements.. . . .