The Power of EMPLOYEE PROPRIETARY INFORMATION AGREEMENTs

Employee proprietary information agreements are an essential tool for protecting a company`s confidential and proprietary information. These agreements, also known as confidentiality agreements or non-disclosure agreements, are a crucial aspect of safeguarding a company`s trade secrets, client lists, business strategies, and other sensitive information.

What is an Employee Proprietary Information Agreement?

An employee proprietary information legal employer employee. It outlines the employee`s responsibilities to protect the company`s confidential information and specifies the consequences of unauthorized disclosure or use of that information. Agreements provisions non-disclosure, non-compete, non-solicitation, return company termination employment.

The Importance of Employee Proprietary Information Agreements

Employee proprietary information businesses sizes industries. Study Ponemon Institute, average cost data breach 2020 $3.86 million. With the increasing threat of data breaches and intellectual property theft, it`s more important than ever for companies to have robust safeguards in place to protect their confidential information.

Statistics Data Breaches	Impact Businesses
Over 4.1 billion exposed data breaches first half 2021.	Data breaches can result in financial losses, damage to reputation, and legal consequences.
60% of small businesses go out of business within six months of a data breach.	Loss of customer trust and confidence can have long-term repercussions on a business.

Case Study: The Importance of Employee Proprietary Information Agreements Action

One notable case underscores The Importance of Employee Proprietary Information Agreements legal battle Uber Waymo. Waymo, subsidiary Alphabet Inc., accused Uber of stealing its self-driving car trade secrets through the actions of a former employee who had signed a confidentiality agreement with Waymo. The case resulted in a settlement valued at $245 million, highlighting the significant financial and reputational risks of failing to protect proprietary information.

Employee proprietary information agreements are a critical tool for protecting a company`s most valuable assets. By requiring employees to sign these agreements, businesses can mitigate the risk of data breaches, intellectual property theft, and unfair competition. It`s essential for companies to regularly review and update their confidentiality agreements to ensure they provide adequate protection in today`s rapidly evolving business landscape.

EMPLOYEE PROPRIETARY INFORMATION AGREEMENT

This Employee Proprietary Information Agreement (the “Agreement”) is entered into as of [Date], by and between [Employer Name] (the “Company”) and [Employee Name] (the “Employee”).

1. Definition Proprietary Information
For purposes of this Agreement, “Proprietary Information” shall mean any and all non-public information, in whatever form or format, relating to the Company`s business, products, services, customers, clients, suppliers, technology, and any other information that is not generally known to the public.

2. Obligations Employee
During the Employee`s employment with the Company and at all times thereafter, the Employee agrees to hold in strict confidence and not to disclose, use, lecture upon or publish any of the Company`s Proprietary Information, except as such disclosure, use, lecture or publication may be required in connection with the Employee`s work for the Company, or unless specifically authorized in writing by the Company.

2. Obligations Employee

During the Employee`s employment with the Company and at all times thereafter, the Employee agrees to hold in strict confidence and not to disclose, use, lecture upon or publish any of the Company`s Proprietary Information, except as such disclosure, use, lecture or publication may be required in connection with the Employee`s work for the Company, or unless specifically authorized in writing by the Company.

3. Return Materials
Upon termination of the Employee`s employment, for any reason, or upon the Company`s earlier request at any time, the Employee shall promptly deliver to the Company all materials, including all copies, whether prepared by the Employee or otherwise, containing or pertaining to any Proprietary Information.

4. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of [State/Country], without giving effect to any choice of law or conflict of law provisions.

5. Entire Agreement
This Agreement constitutes the entire understanding and agreement between the parties concerning the subject matter hereof and supersedes all prior agreements, understandings, discussions, negotiations, and undertakings, whether written or oral, between the parties with respect thereto.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

Frequently Asked Questions About Employee Proprietary Information Agreement

Question	Answer
1. What is an employee proprietary information agreement (EPIA)?	An EPIA is a legal contract between an employer and an employee that outlines the confidentiality of proprietary information and trade secrets belonging to the employer. Sets employee`s obligations protect disclose information employment.
2. Is an EPIA legally binding?	Yes, an EPIA is legally binding if it meets the legal requirements for a valid contract, such as offer, acceptance, consideration, and intent to create a legal relationship. It must also comply with relevant state and federal laws governing employment contracts and trade secrets.
3. What information is considered proprietary under an EPIA?	Proprietary information typically includes trade secrets, confidential business strategies, customer lists, financial data, product designs, and other sensitive information that gives the employer a competitive advantage. It can also cover non-public information disclosed to the employee during their employment.
4. Can an employer enforce an EPIA against a former employee?	Yes, employer enforce EPIA former employee reasonable scope duration. Courts will assess whether the restrictions in the agreement are necessary to protect the employer`s legitimate business interests and are not unduly burdensome on the employee`s ability to find work.
5. What happens if an employee violates an EPIA?	If an employee violates an EPIA by disclosing proprietary information, the employer can pursue legal remedies such as injunctive relief to stop further disclosure, monetary damages for losses incurred, and in some cases, criminal charges for trade secret theft.
6. Can an EPIA restrict an employee`s ability to work for a competitor?	Yes, an EPIA can include non-compete provisions that restrict an employee from working for a competitor for a certain period of time and within a specific geographic area. However, the restrictions must be reasonable in scope and necessary to protect the employer`s legitimate business interests.
7. Are there any exceptions to confidentiality obligations under an EPIA?	Some EPIAs may include exceptions for information that becomes publicly known through no fault of the employee, information the employee lawfully obtains from a third party, or information the employee is required to disclose by law or court order.
8. Can an employer modify an EPIA after an employee has signed it?	An employer modify EPIA employee signed it, parties agree modifications legally binding. Employers should also provide consideration, such as a bonus or promotion, in exchange for the employee`s agreement to the modifications.
9. Do EPIAs have an expiration date?	EPIAs can have an expiration date, but the confidentiality obligations may continue beyond the employee`s termination of employment if the information remains confidential and valuable to the employer. It`s important to clearly specify the duration of the confidentiality obligations in the agreement.
10. Can an employee refuse to sign an EPIA?	An employee can refuse to sign an EPIA, but the employer may choose not to hire or retain the employee if they do not agree to safeguard the employer`s proprietary information. Important employees carefully review terms EPIA seek legal advice concerns.