Companies may hire the worker because of his talent, but not because of his specific knowledge of his former company. Unlike competition bans, confidentiality agreements are highly enforceable and can result in heavy penalties for individuals or companies that violate the terms of the agreement. In DB Riley, Inc. against AB Engineering Corp. at the US District Court for the District of Massachusetts [file number 977 F. Supp. 84 [D. Mass. 1997], decided on 18 September 1997 that the case concerned the applicant`s allegation that the defendant had unfairly acquired the applicant`s business secrets and, despite contractual agreements that in no way allowed disclosure, which had existed between them prior to the complaint, the defendant used trade secrets to gain a “competitive advantage”.
In today`s business climate, a slight advantage over the competition can make the difference in the success or failure of the business, and preventing the leakage of important information is critical to these efforts. In addition to the time and duration of the agreement, certain additional provisions should be included in the NDAs to help companies better protect themselves. Some of them are: The non-competition clause is used to prevent an employee from leaving a company and forming his own competing company in the immediate vicinity and in direct competition with his former company.. . . .