Are there points to be careful about when drafting a non-disclosure agreement?

When drafting a non-disclosure agreement,

▶ Purpose of confidentiality

▶ Name and scope of the secret

▶ Provisions on confidentiality obligations

▶ Provisions on damages

▶ Scope of materials subject to confidentiality

must be essentially included.

Then, when a contract clearly stating these is drafted and signed by both parties, it takes legal effect.

Here, 'secret' is not limited to specific technology only and may also include information useful to business activities.

Legally, 'secret' refers to production methods, sales methods, etc., that are not publicly known, have independent economic value, and have been kept secret through considerable effort.

Other technical or managerial information useful to business activities can all be considered secrets.

If you have entered into a contract with confidentiality clauses regarding such trade secrets, you must not disclose or use them thereafter.

If violated, you may face criminal punishment under the Unfair Competition Prevention Act.

In addition, if it is recognized that business interests have been infringed under the contents of the non-disclosure agreement, damages must be paid

Therefore, if you need a thorough legal review of the non-disclosure agreement, we recommend seeking advice from a specialist attorney.