A Startup Confidentiality Agreement is essential when sharing sensitive business information with potential investors, employees, or partners in the United States. This agreement, governed by federal and state trade secret laws, helps protect intellectual property, business strategies, and proprietary information during business negotiations, due diligence processes, or employment discussions. It defines what constitutes confidential information, establishes handling procedures, and outlines remedies for unauthorized disclosure.
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1. Parties: Identification of the disclosing and receiving parties
2. Background: Context of the agreement and purpose of sharing confidential information
3. Definitions: Define key terms including 'Confidential Information', 'Trade Secrets', 'Representatives'
4. Confidentiality Obligations: Core obligations regarding protection and non-disclosure of confidential information
5. Permitted Disclosures: Circumstances under which confidential information may be disclosed
6. Term and Termination: Duration of the agreement and termination provisions
7. Return of Confidential Information: Obligations regarding return or destruction of confidential materials
1. Non-Solicitation: Restrictions on soliciting employees or customers (used when protecting business relationships is crucial)
2. Non-Competition: Restrictions on competing activities (used when sharing highly sensitive business information, subject to state law restrictions)
3. Intellectual Property Rights: Clarification of IP ownership (used when shared information might lead to new IP creation)
1. Schedule of Confidential Information: Detailed list of specific confidential information covered
2. Authorized Representatives: List of individuals authorized to receive confidential information
3. Security Protocols: Specific security measures required for handling confidential information
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