Standard Length Of Confidentiality Agreement

But if you are the recipient of the confidential information, you will probably want to insist on a certain amount of time when the agreement expires. Finally, after a number of years, most of the information becomes useless anyway and the cost of the policy confidentiality obligation can be costly if it is an « forever » obligation. In conclusion, the two main factors you need to consider when thinking about the length of your non-disclosure are the type of information you want to protect and the jurisdiction you will use for your agreement. Parties in a dilemma often feel unable to advance the issue of unlimited confidentiality and eventually move to a limited time limit. In other words, if you design a usage agreement during project development, your relationship with the developer may end once the project is completed, but you may want the confidentiality of the information you share to remain confidential for a long time – for example. B if the product is actually put on the shelves. The point I hope you come here is that the duration of a confidentiality agreement and the duration of confidentiality in general are two very different things and should be treated with care as part of your agreements. Instead, you can create two separate chords. A confidentiality agreement for your trade secrets and another non-compete agreement. In this way, even if your foreign agreement is cancelled, the confidentiality of your business secrets will not automatically be cancelled. Often, a party (usually the recipient party) wants to limit the duration of confidentiality while negotiating a confidentiality agreement. For the sake of clarity, the « conditions » here refer to the validity of a confidentiality agreement. While it is not for me to discuss good practice in this regard, I will say with such audacity that you should at least never relax your recipient`s unlimited obligation to preserve your trade secrets.

To indicate the duration of a commitment, you have two options. You could incorporate it into the commitment: Acme will keep the information confidential for three years. Alternatively, you can omit any indication of the duration of the commitment and instead indicate the duration (or « duration ») of the entire contract. There is no timetable for the duration of a non-disclosure, and the specific timetable depends entirely on the details of the agreement, the preferences of the parties, the relationship between the parties and a number of other factors. Most of the agreements I see (if they have a duration) have a period of two to five years. But your NDA must also say that even if the term is over, the party that made the legend does not waive any other rights it may have under copyright, patents or other intellectual property laws. As some argue, information such as customer lists, marketing strategies and pricing models can become obsolete after a few years anyway, so there is no reason to argue for a permanent confidentiality agreement if you are dealing with only ordinary confidential information.