IP contracts

It is a contract which provides that information exchanged in the context of the negotiation or execution of the contract must not be transmitted to third parties by one party without the agreement of the other party.

It is sometimes necessary to communicate one’s invention or confidential information to potential partners or investors before filing a patent application. In such cases it is possible to prevent the disclosure of the secret by having the recipients of the information sign a confidentiality agreement. Thus, this type of agreement is essential in the initial stages of the genesis of an invention, before a patent is filed, or for secrets intended to remain confidential at all times, for example an internal manufacturing process.

Unlike a patent, a confidentiality agreement does not confer a monopoly, but makes it possible to sue the receiver of the confidential information in the event of improper disclosure, and to claim compensation for the losses incurred. The amount of damages, fixed by the judge, may be difficult to prove in case of breach of the agreement. Therefore, it is advisable to insert a penalty clause in the contract, which will allow for an automatic amount to be received in case of breach of the agreement.