More information about the Employee Non-Disclosure Agreement

What is a non-disclosure agreement?

It is an agreement with an employee that restricts the employee from revealing trade secrets to any third party.

What is a trade secret?

A Trade secret is defined as confidential business information including all types and forms of financial, technical or engineering information.  It refers to almost any type of proprietary data and information such as methods, plans, software, codes, techniques, formula, any devices, customer lists, or price information intended to be kept confidential.  Generally trade secrets are key elements to get a competitive edge over the rival business.

What is the difference between a trade secret and a patent?

A trade secret is confidential information that gives a company a competitive advantage over its rivals and that provides economic value to the company, as it is not known to the public.  A patent is a grant of property rights to a person who invents any process, machine, manufacture, composition of matter, or any improvement thereof.  It is issued by the Patent and Trademark Office.  Unlike trade secrets, the details of patents are disclosed to the public.