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China Trade Secret Protection and Non-Disclosure Agreement

This is a sample Heading 1. Lorem ipsum. You absolutely need your Chinese supplier to sign a NDA or CDA before you disclose your trade secret to them. Are you wondering what a trade secret is? Do you have an idea or information that you believe is valuable to your business and would you like to ensure that nobody knows it? Have you received a letter stating that you have "misappropriated a trade secret"? If the answer is "yes" to any of these questions, then keep reading for more information about trade secrets!

What is a trade secret?

A legal trade secret is information (i.e., a formula, pattern, physical device, or process) that has two characteristics: (1) the information must be a "secret" (i.e., not generally known or readily ascertainable) that provides your business with a competitive advantage; and (2) the creator of the information must take steps to keep the information secret or confidential.

How do you know if you have a trade secret or violated trade secret laws? Please visit our Trade Secret and the links below for more information.

Definition of 'Non-Disclosure Agreement - NDA'

To protect your trade secret, you need the recepient of your trade secret disclosure to sign a non-disclosure agreemnt. A legal contract between two or more parties that signifies a confidential relationship exists between the parties involved. The confidential relationship often will refer to information that is to be shared between the parties but should not be made available to the general public.

Also referred to as a 'confidentiality agreement'.  Although non-disclosure agreements are generally in the form of written contracts, they may also be implied if the context of a business relationship suggests that the parties intended to make such an agreement. A non-disclosure agreement is also known as a confidentiality agreement, confidential disclosure agreement, proprietary information agreement, or secrecy agreement.

China IP lawyer explains 'Non-Disclosure Agreement - NDA'

NDAs arise when two companies are about to do business together. The parties are often restricted from releasing information regarding any business processes of the counter-party that are integral to the company's operations. NDAs also may arise between an employer and employee. If the employee will have access to sensitive information about the company they may be asked to sign a NDA when they are hired. This will provide an incentive to the employee not to release this sensitive information and avoid a costly legal headache.

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I am a licensed China lawyer. Most clients are foreign nationals and companies. China Lawyer Blog have associates in Beijing, Shanghai, Tianjin, Guangzhou, Suzhou, Nanjing, Qingdao, Fuzhou, Hainan, Hefei, Wuhan, Xian, Changsha, Xiamen and Hangzhou. Learn More

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China Lawyer BLog AuthorPeter Zhu, an experienced China attorney licensed to practice law for more than ten years, the author of this China Lawyer blog, welcomes any enquiry or consultation related to Chinese law.