Contract

01 May 2008

I am thinking about engaging a contractor to prepare some manufacturing designs to enable me to seek pricing for manufacturing a new product line. What protection should I seek to prevent that contractor disclosing my ideas to other clients or using it for other projects?

When you are releasing commercially sensitive information to a person outside of your business, you need to ensure that person is bound by an obligation to not use that information for any reason other than the particular purpose for which you provided that information to them. So, if you are providing product specifications to a designer to provide you with manufacturing drawings, you should ensure that all information provided is clearly marked as confidential to your business, and that the person enters into an appropriate confidentiality arrangement with your business under which they are required to not use that information except for the purpose for which it is provided (ie producing the drawings for you) and to return the information to you (or destroy it) when the job has been completed.

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Karen Ngan

Partner - Corporate & Commercial

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