Limited Disclosure Agreement

Like the previous case-law, the General Court also held that the information in question would be classified as a commercial secret only if the applicant had taken appropriate measures to ensure his confidentiality, which, according to the Court, should not involve excessively costly measures, but simple measures such as consultation of employees on the importance of commercial secrecy. and limiting access to them through the use of a “need to know” database. Since the duration of the agreement was only two years, the defendant was free to implement the above-mentioned practices after the expiry of that period. Thus, the Tribunal found that the applicant did not have a high probability of success of his claim to embezzlement. Just as confidentiality agreements are intended to avoid financial damage to the disclosing party, non-compete agreements are developed to prevent the receiving party from establishing its own business in competition with the disclosed party`s activities. To learn more about the non-compete rules under EI Labout Law, click here. In addition to the time and duration of the agreement, there are some additional provisions that should be included in the NDAs in order to help companies better protect themselves. . . .