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Texas business law and nondisclosure issues

On Behalf of | May 25, 2023 | Business Law |

When a Texas business owner or employer wants to protect proprietary information, there are several ways to do so. One way is simply to not share the information with anyone, but it’s typically not a practical solution. Chances are, for the information to be useful to the business, other people will need to have access to it. A far more common means of protecting intellectual property — such as recipes, systems, methods, or other trade secrets — is to have employees sign a nondisclosure agreement.  

Keep in mind that relying on a nondisclosure agreement to protect confidential information does not necessarily mean every new hire must sign one. In fact, it is best to restrict signatures to the specific people who will have access to the information in question. This also makes it easier to identify a breach because if a former employee shares trade secrets with others, and only a handful of people have signed nondisclosures or had access to the information, it helps narrow down the possibilities of who the culprit might be.  

A nondisclosure agreement should not last indefinitely 

If a former employee signed a nondisclosure contract when hired, the agreement should have included terms stating how long the agreement would last. An example of acceptable time frames might be two to five years, but sometimes a much shorter time may be applicable. And employers should avoid asking workers to sign nondisclosure agreements that are indefinite.  

Trade secret theft and other nondisclosure issues 

If someone steals trade secrets and uses them for personal gain, the creator or owner of the information may have grounds for filing a business law claim. Falling victim to a trade secret theft can cause a business to have serious problems, including financial loss. A business law attorney can help find solutions for all nondisclosure-related issues.  


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