Non-disclosure Agreements And Confidentiality Clauses

Published date03 August 2020
Subject MatterCorporate/Commercial Law, Corporate and Company Law
Law FirmGiambrone & Partners
AuthorGiambrone Law ILP

Non-disclosure agreements (NDA) are used to seal the lips across a range of situations in nearly all industry sectors. Organisations, particularly the many industry sectors that depend on constant innovation and new developments, need to ensure that their research, discoveries and breakthroughs are protected. Also, important business transactions could be completely derailed if rivals learned about the deal before it was completed.

When NDAs are used to prevent an individual from revealing abusive behaviour the validity of using such an agreement such is now being called into question. The revelation that Harvey Weinstein wielded robust NDAs to prevent his victims speaking out has posed an ethical dilemma as to whether criminal behaviour should be able to be shielded by an NDA. His victims have now been released from the confines of the agreements they signed.

NDAs are frequently used in marriage or relationship break-ups when one party has a high media profile to prevent "tell-all" books in the future causing reputational damage. In an unusual about-face the former wife of Sir Elton John, Renate Blauel, is suing Sir Elton for his alleged breach of the NDA signed on their divorce. It would be reasonable to assume that the NDA was principally drafted to protect the name of Sir Elton and any off-set any potential reputational damage that may stem from any private revelations that his former wife may expose. Nick McEwen, an associate in Giambrone's corporate and commercial team, commented "an artist such as Sir Elton John like many others depend on the goodwill of their many fans. If highly adverse information is leaked it can swiftly result in significant loss of revenue and good name that cannot easily be restored" he further pointed out "commercial organisations rarely give the benefit of the doubt to performers whose reputations have been tarnished as...

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