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If an NDA lists extreme punishments for breaking the confidentiality agreement, you shouldn't sign it. A common consequence for breach of contract under an NDA is termination of employment. Be aware of what is considered a breach of contract.

If the information is a trade secret as defined by applicable state law, it is likely that the information can be protected indefinitely, or as long as the information would qualify as a trade secret. However, if the information is merely confidential or proprietary information, such as client lists or pricing

Some confidential information may not need secrecy to extend beyond the end of the business relationship but others will require secrecy to continue to apply even after the termination of the business relationship. There's no one standard term but common confidentiality terms can range between 2, 3 and 5 years.

Employers must be prepared to terminate any employee who refuses to sign the agreement. If an employer allows even one employee to refuse and remain employed, the agreements signed by the other employees will not be legally binding.

While an employer has the right to demand its employees sign a NDA when those employees have access to valuable company data (e.g. product formulas, private customer lists, financial reports, etc.), the employer should not ask an employee to sign a confidentiality agreement if the purpose is to protect information that

Confidentiality agreements usually allow the recipient to disclose confidential information if required to do so by court order or other legal process.

If a perpetual confidentiality agreement is used in these states and both trade secret and non-trade secret confidential information is disclosed, then a company runs the risk that a court may find the agreement unenforceable, which would thereby extinguish trade secret protection for any disclosed information.

And while every non-disclosure agreement is as unique as the parties and the agreement involved, terms of 1 10 years are standard, with the duration of confidentiality lasting indefinitely on trade secrets and as long as possible (or as is necessary) for other forms of IP.

The cold hard truth is that most NDAs do not hold up in court. Non-Disclosure Agreements are most effective in establishing a paper trail of confidential information as it relates to partnerships, and discouraging partners from misappropriating proprietary information.

Utah Noninterference and Confidentiality Agreement

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What happens if you don't sign a confidentiality agreement?

Can confidentiality agreement be indefinite?

How long does confidential information remain confidential?

Can I refuse to sign a confidentiality agreement?

Can an employer make you sign a confidentiality agreement?

Are confidentiality agreements confidential?

Are perpetual confidentiality agreements enforceable?

How long are confidentiality agreements valid?

Do confidentiality agreements hold up in court?

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