You know better than anyone what uses would be detrimental to your business. Don t be afraid to mention them in the non-disclosure agreement. Disclosures to Third Parties Virtually every non-disclosure agreement prohibits the recipient from disclosing confidential information to an unrelated third party except with the discloser s prior written consent. The discloser may condition his consent upon such third party entering into confidentiality undertakings similar to those contained in the non-disclosure agreement with the recipient. This raises an interesting issue.
Individuals are capable of receiving confidential information.
These individuals may work for the corporation. They may be independent advisers or consultants. Inevitably, warm-blooded human beings will be receiving, evaluating and assessing your confidential information. There are several ways that you can bind these individuals to confidentiality. The most obvious way is to get each of them to sign an agreement accepting the terms and conditions of your non-disclosure agreement with the recipient and agreeing to be bound thereby.