Confidentiality Agreement – Trade Secret
The best way to protect an idea is not to reveal it to anyone, but this is also the best way to make it completely worthless. Additionally, just because you keep your idea to yourself doesn’t mean the same idea can’t pop up simultaneously in someone else’s mind, and then even its non-disclosure becomes completely worthless. Every idea has potential value, and to exhaust this potential, you’ll need to share it with others. In fact, a successful idea is one that as many people as possible know about, and that’s what you should strive for. At the same time, along the way, you also want to protect it, and you can do this through a series of trade secret protections.
What is a Trade Secret?
Well, the term trade secret can be defined at the conceptual level and at the legal level. At the conceptual level, it’s business information that isn’t public knowledge and isn’t easily discoverable in light of measures taken by the information owner. At the legal level, trade secret is defined within the Commercial Torts Law 1999, which also defines several conditions the information must meet to be defined as a trade secret – proof of ownership, proof of economic value, and so on. At the practical level, if you have any idea regarding a product, process, mechanics, or any other idea, or even if you have mathematical, statistical, or any other type of information that could have economic value – in all these cases, you have a trade secret you want to protect at all costs, or submit it as a patent registration application. It’s important to consult on this point with a professional for each case specifically, as these are nuances that sometimes change everything.
How Do You Protect the Secret?
The best way to protect a secret is simply not to reveal it to anyone, but this is also the best way to make the secret worthless. To realize your secret’s economic potential, you’ll need to translate it into a valuable product or service, something present in the real world that can be used. In the aspect of trade secrets, this means you’ll need to expose the secret to a long line of professional entities who know how to translate your secret into money – investors, managers, employees, consultants, research and development people, designers, manufacturers, marketers, distributors, regulators, and finally also customers. The meaning is that you must expose your secret, but you need to do it correctly. This correct way is called a trade secret confidentiality agreement.
What is a Trade Secret Confidentiality Agreement?
A confidentiality agreement (Non-Disclosure Agreement – NDA) is an agreement you have any party sign before exposing the trade secret to them. The agreement specifies and emphasizes that party’s obligation to keep the secret and not reveal it, as well as not make any use of it of any kind. The agreement can also define measures that party must use to ensure the trade secret’s confidentiality level, as well as detail binding processes that will ensure secret preservation. There are standard formulas for trade secret confidentiality agreements, although these formulas are very basic and can make things very difficult for you if and when the case reaches legal proceedings. You want to draft your confidentiality agreement with professional legal support and also learn exactly how to implement and enforce it efficiently.
Av Tipus company is one of the leading patent companies in Israel and has extensive knowledge and experience in the field of patents, ideas, and trademarks. At Av Tipus company, you can find a team of consulting patent attorneys who will help you define your trade secret according to the Commercial Torts Law, formulate a trade secret confidentiality agreement, and accompany you along the way to ensure your secret is well preserved and with it also your rights to it. Want to hear more? Contact us today at 03-9711011 and we’ll be happy to help.