The axiom that one should not be “penny wise and pound foolish” is particularly apt with respect to confidentiality and nondisclosure agreements (“NDAs”).

Many companies draft their own confidentiality agreements without legal help. Then, when it is time to enforce an agreement against a former employee, the employer may be told that it is unenforceable.

Unlike noncompete and nonsolicitation agreements — which, unless reasonable in scope, constitute unlawful restraints on trade — NDAs are legitimate ways of protecting an employer’s confidential and trade secret information.

Of course, whether the information to be protected is truly “confidential” is often in dispute. As often happens in lawsuits involving business agreements, a court in a lawsuit involving an alleged breach of an NDA can grant injunctive relief to prohibit unlawful use and disclosure of confidential and trade secret information.

Furthermore, a defendant found to have improperly used or disclosed his or her employer’s confidential or trade secret information may be liable for damages.

We have reviewed, revised and drafted hundreds of confidentiality agreements and NDAs, and we can help any employer draft agreements likely to hold up in court. We have also represented both employers and employees in lawsuits involving alleged breaches of NDAs. Contact us today to determine your best course of action.