Non-Disclosure Agreements

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In the ever changing world today, companies are continuing to innovate so they can maintain a competitive advantage. In order to keep their ideas secret, companies use legal documents called non-disclosure agreements or confidentiality agreements. Thousands of companies sign these contracts with other businesses and their own employees to insure that current projects, innovative ideas, or new products are undisclosed from competitors. NDAs provide a level of protection and comfort when disclosing information to another party. They are a significant part in intellectual property perfection.
A non-disclosure or confidentiality agreements are contracts between two or more parties that outline confidential material, knowledge, or information that …show more content…

Companies do this because, they don’t want you sharing interview questions or recruiting practices. Or, if they’re discussing company issues or problems that they don’t want to become public. When an employee signs this contract they agree not to share intellectual property, client information, or anything related to the work that the employee does for the company. But what happens when the employee chooses to end their employment at one company and move to another? A potential employee may be required to sign a contract called a non-compete clause (NCC). A NCC prevents an employee from competing with their employer if they ever decide to leave the company. This prevents the employee from working for a competitor or starting their own business, and gain an advantage by using confidential information from their former employer. Information like trade secrets, customer/client lists, business practices, future products, marketing plans, etc. would be secure under this clause. Many employees now are bound to this clause and have had an impact on their search to find better work. Signing these types of contracts gives companies the power to dictate where their former employees can work. If the employee violates their agreement by working at another business, he/she could face a lawsuit. And if the new business won’t defend the new employee or if he/she does not have the money to pay for legal bills, they may have to resign and live off unemployment until they find another job. This prevents employees from moving on and finding better opportunities for themselves. States such as, California, Montana, North Dakota, and Oklahoma, have banned the use of non-compete clauses for low-level employees. Nevertheless, these clauses are still popular in the states that have not banned

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