This form is a "Residuals" Clause for Basic Nondisclosure Agreement usable in agreements regarding nondisclosure of licensing, patents, or commercial trade secrets. The residuals clause allows some disclosures of confidential information under certain limited circumstances.
The New Hampshire Residuals Clause for Basic Nondisclosure Agreement is a crucial component that ensures the protection of sensitive information shared between parties involved in a business transaction or partnership. This clause helps prevent the unauthorized use, disclosure, or dissemination of proprietary information. The Residuals Clause is specifically designed to address the issue of residual knowledge or "know-how" gained by the recipient of confidential information, even after the agreement has ended. It emphasizes that the receiving party must not utilize any residual knowledge acquired during the agreement for their benefit or in a manner that could harm the disclosing party. Here are different types or variations of the New Hampshire Residuals Clause for Basic Nondisclosure Agreement: 1. Comprehensive Residuals Clause: This type of clause ensures that any residual information, including ideas, concepts, techniques, and processes, obtained by the receiving party during the agreement's term, remains confidential. It prohibits the use of such knowledge for any purpose other than fulfilling the specified business relationship. 2. Limited Residuals Clause: This clause restricts the use or disclosure of residual knowledge only to the extent necessary to comply with legal obligations or enforce rights under the agreement. It grants the receiving party limited rights to apply residual information for their own benefit, but only in a manner that does not violate the nondisclosure agreement and subsequently harm the disclosing party. 3. Time-Limited Residuals Clause: In this variation, the clause specifies a predetermined period during which the receiving party can benefit from residual knowledge. After the agreed-upon term expires, the party must cease using such information, ensuring protection for the disclosing party's proprietary data. 4. Strict Non-Utilization Residuals Clause: This clause completely prohibits the utilization of any residual knowledge by the receiving party. It disallows any form of application, exploitation, or disclosure of the residual information, thereby offering maximum protection to the proprietary data. In conclusion, the New Hampshire Residuals Clause for Basic Nondisclosure Agreement plays a crucial role in safeguarding confidential information shared between parties. Its variations include the comprehensive, limited, time-limited, and strict non-utilization clauses, providing options to customize the level of protection based on the unique requirements of the business relationship at hand.
