Austin Startup Attorney Drafts Confidentiality Agreements


Austin Startup Attorney Drafts Confidentiality Agreements

Austin Startup Attorney Natalie Lynch can assist your business in drafting confidentiality agreements. Startups often happen when entrepreneurs have/can do something better than their competition and that something must be protected from the competition. In the course of doing business, your startup may need to share information. A properly drafted confidentiality agreement assists you in the process of sharing information with employees, consultants, vendors, and other parties. A confidentiality agreement can protect and cover any number of aspects of doing business, like trade secrets, customer lists, and products, to name just a few. Additionally, when an employee with confidential information leaves, the Lynch Law Firm will walk you through the steps of strengthening the protections covering that information.

Most states look down upon “restraints on trade” and you need the Lynch Law Firm to help you properly balance your right to protect your assets against the court’s dislike for confidentiality agreements.

3 Reasons Your Startup Needs Confidentiality Agreements

1.Protection and Control of Information. The main reason your startup should have confidentiality agreements in place is to protect your business’s assets and proprietary information or processes.

2.Financial. A well-drafted confidentiality agreement can protect your business from future court costs in the event that the information is disclosed to a third party. Ensuring that all parties are aware of their rights and responsibilities can avoid costly litigation.

3.Competition. The confidentiality protects your company’s business interests by preventing trade secrets and other business information from being disclosed to third parties. Your startup must control the flow of information to third parties.

Common Mistakes Made With Confidentiality Agreements

1. Including Information that is Not Confidential. The Lynch Law Firm can assist your startup in avoiding a confidentiality agreement that is overly broad. The agreement should be tailored specifically to your business’s needs, and include detailed examples of what needs to remain confidential. An overly broad agreement may not be enforceable at all. Arguing about the scope of a confidentiality agreement simply serves to bring more light to the information itself. It is far better to have an enforceable document at the outset.

2. Penalties and Remedies. In the event of a breach of the confidentiality agreement, proper penalties need to be delineated in the agreement. There needs to be an incentive drafted into the agreement for the business’s secrets to be maintained and not disclosed to improper parties. The Lynch Law Firm can assist your startup in determining appropriate penalties in the event of disclosure of business and trade secrets.

If your Austin startup needs assistance drafting a confidentiality agreement, please contact the Lynch Law Firm.

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