How should you share confidential information?
You can use the agreement when speaking with a potential business partner, developer or manufacturer, for example. The confidentiality agreement clearly signals that you do not want the information you share to be distributed and that signing the agreement entails legal responsibility.
A confidentiality agreement makes it safer to share information. Confidentiality is mutual, allowing both parties to communicate more openly with each other. The agreement is also important for keeping track of who has received what information about the project.
Do not disclose more than necessary
You should use a confidentiality agreement with care and consideration. Even when using such agreements, it may be wise not to disclose more details than necessary. Remember that the agreement only applies to information that is not already publicly known.
Be aware of who signs the agreement – does the signatory have the authority to bind the entire company, or only themselves? It is also important to consider how they may share the information with others within the company.
If you share confidential information in a document, you can mark the document 'CONFIDENTIAL'.
Remember to also write minutes of meetings and have them approved by all participants to document what has been agreed.
Our employees are bound by a statutory duty of confidentiality, which provides your idea with the strongest possible protection. We therefore do not sign confidentiality agreements.
Examples of confidentiality agreements
The IP Helpdesk also provides useful examples of unilateral and mutual agreements. Under a unilateral agreement, one party is not required to disclose its own information.
Collaboration and intellectual assets
Collaboration requires each participant to understand and maintain control of the intellectual assets they bring to the project. This is particularly important for smaller businesses and startups working with larger organisations.
If you are collaborating with others to develop a product, you should enter into a written agreement covering the product's development and commercial exploitation.
This may, for example, relate to the use of
- external developers for app development, including a web solution
- industrial designers
- mechanical engineering company for product assembly
- external consultants (technical, R&D and other)
- EU projects and EU consortia
It is important to establish this early on, so that all parties share an understanding of the aims of the collaboration, what each party will contribute to the project, how any value created will be distributed, the key milestones to be achieved and the consequences if they are not met.
It is also important to agree early on who will own what is created during the project, including any next-generation versions and further developments.
It is also important to agree clearly on what happens if someone wants to end the collaboration.
Trade secrets
Trade secrets in the form of sensitive information are governed by separate legislation. See the Trade Secrets Act.
You should take particular care if you are an employee, as the information may belong to your employer.