What Is A Non Disclosure Agreement, Assignment of Inventions Agreement And A Non-Compete Agreement?

Another document thatโ€™s often requested that we draft for companies is a non-disclosure agreement, assignment of inventions, agreement and a non-compete. Letโ€™s start with a non-disclosure agreement and the assignment of inventions agreement.

So youโ€™re going to employ somebody or multiple people and youโ€™re going to have them do a bunch of things for you that youโ€™re going to pay them to do. And you want to make sure that on the assignment invention side, whatever they do while theyโ€™re working for you becomes the companyโ€™s property, that itโ€™s not theirs. Whether itโ€™s a patent, trademark, copyright doesnโ€™t matter.

Youโ€™re paying them in exchange for their services and the company owns the product or service or whatever the intellectual property is. A non-disclosure agreement is also saying youโ€™re going to learn a bunch of things. Youโ€™re going to see a bunch of things while youโ€™re here, whether itโ€™s proprietary to the company, confidential to the company, or when youโ€™re serving a law firm or a medical doctorโ€™s office, other confidential information of clients, patients, etc. And you want to make sure that your employees understand that those items are confidential and that theyโ€™re agreeing to the confidentiality in a document upfront.

A non compete agreement is sometimes also requested, depending on a particular industry, and itโ€™s very important to pay particular attention to what are you asking your potential employee to not compete with you against or not solicit? Meaning theyโ€™re not going to take clients or take other employees if they leave. And that should be narrowly tailored, properly drafted, consistent with appropriate state law.

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