Are confidentiality agreements different from covenants not to compete?

Confidentiality agreements can either protect both parties and so both parties are agreeing not to disclose or use each other's confidential information. In contrast, non-compete agreements are almost always one-sided agreements. Usually, one party (the employer) requires the other party not to compete.

Can a NDA include a non-compete?

If you're asked to sign an NDA that includes a non-compete clause, you can: Sign it, and live with the consequences. You'd be gambling that the issue wouldn't come up, or that a court wouldn't enforce the non-compete. Refuse to sign it, and not get access to the confidential information.

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Santa Clara California Confidentiality Agreement with Employee Regarding Research, Development, Production, Marketing, and Management; and Covenant not to Compete

Name: Santa Clara California Confidentiality Agreement with Employee Regarding Research, Development, Production, Marketing, and Management; and Covenant not to Compete
Brand: US Legal Forms
Rating: 4.82 (456 reviews)

Category:

Confidentiality and Nondisclosure - Employment

State:

Multi-State

County:

Santa Clara

Control #:

US-13023BG

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Instant download

Description

A confidentiality agreement is an agreement between at least two persons that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes.

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FAQ

A covenant not to compete, also called a "nompete agreement" or "non compete clause," is an agreement where one party promises not to compete with the other party in a specified area for a certain period of time. A covenant not to compete can be found in an employment contract or a sale of business contract.

Employment confidentiality agreements are usually signed before employment commences. This ensures that the employee knows what he or she is getting into and understands that the job is being given on condition of signing the agreement.

Employee Confidentiality Agreements Must Be Specific Overbroad confidentiality agreements may not be enforceable at all, so being specific and detailed is the best way to protect your brand and ensure that you can enforce the agreement if you must.

"There are several key pieces of information that should be included in NDAs, or non-disclosure agreements. The most important items include customer lists, financial and profit margin information, product breakdowns, bestselling segments and sales scripting and messaging."

Confidentiality/non-disclosure agreements are contracts in which the employee promises not to disclose certain proprietary information, such as trade secrets. Non-compete agreements are contracts in which the employee agrees not to unfairly compete against his/her (former) employer.

According to the California Business and Professions Code Section 16600, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void. In other words, non-compete agreements are not enforceable in California.

A confidentiality agreement is a legally binding contract that states two parties will not share or profit from confidential information. A business usually gives a confidentiality agreement to an employee or contractor to make sure its trade secrets or proprietary information remains private.

Confidentiality agreements can either protect both parties and so both parties are agreeing not to disclose or use each other's confidential information. In contrast, non-compete agreements are almost always one-sided agreements. Usually, one party (the employer) requires the other party not to compete.

Generally, confidentiality agreements are enforceable when they meet the general requirements of a contract.

If you're asked to sign an NDA that includes a non-compete clause, you can: Sign it, and live with the consequences. You'd be gambling that the issue wouldn't come up, or that a court wouldn't enforce the non-compete. Refuse to sign it, and not get access to the confidential information.

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The Company is currently headquartered in Santa Clara, California. Management expects to complete this during the fourth quarter of the 2010 fiscal year.Such adjustments are not expected to be material. Financial tests previously set forth in the Indenture. Research and Development; Manufacturing Technology.

Santa Clara California Confidentiality Agreement with Employee Regarding Research, Development, Production, Marketing, and Management; and Covenant not to Compete

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What is a Santa Clara Confidentiality Agreement?

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Why do employers include a Covenant not to Compete in the Confidentiality Agreement?

What information is protected under a Santa Clara Confidentiality Agreement?

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