When running a business, it’s essential to ensure that all confidential information is kept secure to provide your venture with the protection it needs. A Confidentiality Agreement (CA), or Non-Disclosure Agreement (NDA), is an important document that can help you protect your proprietary information from being shared outside of the business. Los Angeles based businesses will need to know how to draft and enforce a CA, and how the needs of your business will shape the document you need. Here’s what you need to know about getting started with Confidentiality Agreements in Los Angeles.

Understanding the Basics of Confidentiality Agreements

A Confidentiality Agreement is a contract that’s entered into in order to establish a legal and binding relationship between two or more parties. The agreement will typically include the definition of “confidential” information and what specifically should be kept secret. The agreement may additionally define the terms and conditions of the CA, and what should be done if the rules of confidentiality are broken.

Confidentiality Agreements can have various purposes depending on the business needs, but the primary provision of the agreement should identify confidential information that should only be shared between the parties involved. For a business, this information may include trade secrets that it wants to protect from emerging competitors. It could also include confidential information that is shared between businesses who are establishing a business relationship. Some Confidentiality Agreements address the sharing of personal information that should stay within the company, such as customer data and employee information.

Confidentiality Agreements are typically included in many types of business contracts including, but not limited to, operating agreements, partnership agreements, settlement agreements, independent consultant agreements, and asset purchases. It’s common for CAs to be part of a business contract so that each party is aware of the obligations and expectations.

The Laws Governing CAs in Los Angeles

When drafting a Confidentiality Agreement for a business in Los Angeles, its important to have a thorough understanding of the local laws that govern CAs. California has its own body of law, known as the Uniform Trade Secrets act, which provides a legal basis for the enforcement of Confidentiality Agreements. It’s important to understand how the law applies to your individual circumstances in order to draft and enforce CAs effectively.

Under the California Uniform Trade Secrets Act, a company must meet specific requirements for a Confidentiality Agreement to be valid, including:

• The agreement must be in writing;

• The agreement must identify which information is confidential and which is not;

• The agreement must include an expiration date;

• The agreement must specify the consequences of any non-compliance;

• The agreement must specify the duration of the agreement.

In addition, the agreements must be signed by any party to whom the confidential information is disclosed.

Tips for Drafting a Confidentiality Agreement

When drafting a Confidentiality Agreement, it’s important to keep a few key tips in mind in order to ensure that the document is both legally enforceable and protective of the company’s confidential information:

• Determine what information should be included: the agreement should identify all confidential information that is protected. Additionally, include information regarding the consequences of any breach of confidentiality.

• Lay out the scope of the agreement: specify the terms and conditions of the Confidentiality Agreement, including the duration and any limitations.

• Utilize clear and concise language: use clear and concise language in the agreement to ensure that it can be easily understood and enforced.

• Safeguard against misuse or unauthorized disclosure: include provisions in the agreement that prevent the misuse or unauthorized disclosure of the confidential information.

Where to Find Legal Assistance with Confidentiality Agreements in Los Angeles

Los Angeles based businesses in need of legal assistance for draft or enforcement of a Confidentiality Agreement should contact the experienced attorneys at UpCounsel. At UpCounsel, our experienced attorneys can provide business owners with the guidance and support they need to understand their legal obligations under the California Uniform Trade Secrets Act and legally protect their company’s confidential information. Our attorneys are readily available to provide one-time consultations or ongoing legal support as part of an entire freelance legal department.

When it comes to getting started with Confidentiality Agreements in Los Angeles, the team at UpCounsel is here to help. Our attorney profiles include client ratings, reviews, and credentials to ensure you’re receiving high-quality legal assistance. Get in touch with us today to learn more.


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