While it may seem obvious, it is surprising how many businesses are not savvy when it comes to the key information of their business.
There is only so much innovation to go around, so it is important that you keep the key information of your business away from prying and copying eyes.
The protection of confidential information can arise automatically however, it is important that you do not rely on this as it can be costly.
From the outset, you need to ascertain which parts of your business are your trade secrets and those you do not want falling into the hands of your competitors.
While it is important that the action you take in protecting your confidential information is done with the assistance of the legal experts, there are steps you can take yourself.
Firstly, it is important that any documents containing information you wish to keep confidential is marked as being so. In order for an automatic obligation of confidentiality to arise, those who have used the confidential information must have known the information should have remained confidential. Therefore, by marking the documents, from the outset you have put the person on notice that they have an obligation to not disclose the information.
Secondly, you need to be selective with who has access to the information. By choosing the recipients carefully, you can keep a close eye on where any leaks sprout from. It also allows you to ensure that only trustworthy people have access to the core of your business.
While these steps can help you contain confidential information in house, if as part of your business you are required to disclose your confidential information to another business.
At this stage a NDA is essential.
A non-disclosure agreement (NDA) is a binding contract that enables two or more parties to exchange sensitive commercial information.
This is a way of ensuring that your businessÂs information is secure and if there is a situation you have solid grounds to argue breach of contract.
Especially when your business is starting out, it is a crucial time to secure your business.
We recommend a combined approach, where you take the in-house steps to ensure that the information is restricted within your business and consider an NDA if you need to extend the reach of the information.
If you wish to discuss the protection of confidential information, contact Lawdit Solicitors today.