In international business, confidentiality agreements can be essential and strengthen one’s position in potential legal disputes with business partners.
With the increasing internationalization of business relationships, international law is also gaining in importance. The outcome of legal disputes between business partners can be crucially dependent on which national legal system is applied. The law firm MTR Legal Rechtsanwälte advises its national and international clientele on international law.
When establishing new business relationships with national or international partners, a confidentiality agreement should not be missing. It can be essential to protect trade secrets and other confidential information, especially since international legal rules may differ from national ones. Internationally, such a confidentiality agreement is referred to as a Non Disclosure Agreement (NDA).
An NDA provides a lot of flexibility in terms of content; however, some essential points should not be missing in such an agreement. Such an agreement should always be based on reciprocity, obligating all involved business partners to confidentiality. Additionally, the parties must be clearly named contractually.
Adhering to such formalities can be important in a legal dispute. An NDA should detail which information is classified as confidential. This can include documents, contracts, and other files, as well as oral statements. Furthermore, the parties should agree on how to handle confidential information. This can concern both the sharing of information with additional persons and the making of copies. Appropriate care should be taken to protect trade secrets.
Upon expiration of the confidentiality agreement or at the end of the business relationship, the acquired confidential information should be returned or – demonstrably – destroyed. Special attention should also be paid to handling stored data.
It should also be agreed that the party divulging information remains the sole owner and rights holder.
In addition to the term and termination of the agreement, the jurisdiction and thus the applicable law can also be determined. Furthermore, there are a number of other points that can be contractually defined.
MTR Legal Rechtsanwälte advises on the design of a confidentiality agreement and other questions of international law.
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