Receiving Confidential Information from Third Parties
If you're the receiving party, you're getting confidential information from another party. It may very well be that the relationship comes to an end. It may go sour, or you might just move on to other relationships.
If not handled carefully, the receipt of confidential information from third parties can subject a company to unwanted competitive restrictions or liability. Accordingly, the three practices below should be taken into consideration.
- Company personnel should avoid receipt of the confidential information of third parties unless the receipt is covered by a Non-Disclosure Agreement (NDA), or agreement waiving the disclosing party’s rights, approved in accordance with a company contract management policy.
- Distribution of third party confidential information to employees should be restricted to those who have a legitimate business need to know it. Disclosure of third party confidential information to another third party may be done only in accordance with the terms of the applicable NDA and after consultation the company’s legal team.
- Never use third party confidential information obtained through inappropriate means such as misrepresentation or omission of important facts.