How should you share confidential information?
You can use the agreement when talking to 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 a 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 also helps you keep track of who has received which information about the project.
Do not disclose more than necessary
You should use a confidentiality agreement carefully and thoughtfully. Even when you use 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? You should also 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 meeting minutes and have all participants confirm them, so you have a record of what was agreed.
Our employees have 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. In a unilateral agreement, one party does not have 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 and newly established businesses working with larger organisations.
If you plan to work with others to develop a product, you should enter into a written collaboration 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 agree on this early so that all parties share a common understanding of what they want from the collaboration, what they will contribute to the project, how any value created will be distributed, which key milestones must be reached and what the consequences will be if they are not.
It is also important to agree early on who will own what is created along the way, including any next-generation solutions and further developments.
It is also important to agree clearly on what happens if anyone wants to end the partnership.
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.