The Proprietary Information Exchange Agreement serves as a critical legal instrument for businesses and organizations operating in India who need to share sensitive information while maintaining its confidentiality. This document is essential when parties are exploring business opportunities, conducting due diligence, engaging in joint ventures, or pursuing any collaboration requiring the exchange of proprietary information. The agreement is structured to comply with Indian legal requirements, including the Indian Contract Act, 1872, and the Information Technology Act, 2000, while providing comprehensive protection for trade secrets, technical know-how, business strategies, and other confidential information. It is commonly used before detailed business discussions begin and can be either mutual (bidirectional) or unilateral (one-way) depending on the nature of the information exchange.
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1. Parties: Identifies and provides full details of all parties entering into the agreement
2. Background: Explains the context and purpose of the agreement, including the nature of the business relationship
3. Definitions: Defines key terms used in the agreement, particularly 'Confidential Information', 'Permitted Purpose', and other relevant terms
4. Scope of Confidential Information: Detailed description of what constitutes confidential information under the agreement
5. Obligations of Confidentiality: Core confidentiality obligations, including handling, storage, and protection of confidential information
6. Permitted Use and Disclosure: Specifies allowed uses of the confidential information and circumstances under which disclosure is permitted
7. Term and Survival: Duration of the agreement and which obligations survive termination
8. Return or Destruction of Confidential Information: Requirements for handling confidential information after the agreement ends
9. Breach and Remedies: Consequences of breach and available remedies including injunctive relief
10. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, entire agreement, and amendments
1. Third Party Disclosure: Include when either party may need to share information with affiliates, advisors, or other third parties
2. Data Privacy Compliance: Include when confidential information includes personal data requiring compliance with privacy laws
3. Export Control: Include when information exchange may be subject to international trade restrictions
4. Reverse Engineering Prohibition: Include when dealing with technical information or software
5. Residual Knowledge: Include when parties want to address use of general knowledge retained by individuals
6. Non-Solicitation: Include when parties want to prevent hiring of each other's employees
7. Securities Law Compliance: Include when information could constitute material non-public information
8. Force Majeure: Include when parties want to address circumstances beyond their control affecting compliance
1. Schedule A - Description of Permitted Purpose: Detailed description of the business purpose for which confidential information may be used
2. Schedule B - Authorized Representatives: List of individuals authorized to receive and handle confidential information
3. Schedule C - Security Protocols: Specific security measures and protocols for handling confidential information
4. Schedule D - Types of Confidential Information: Detailed categorization of different types of confidential information covered
5. Appendix 1 - Information Handling Procedures: Step-by-step procedures for handling, storing, and destroying confidential information
6. Appendix 2 - Breach Notification Procedures: Procedures to be followed in case of suspected or actual breach
Authors
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Manufacturing
Healthcare
Financial Services
Biotechnology
Pharmaceutical
Automotive
Aerospace
Research & Development
Education
Professional Services
Telecommunications
Energy
Real Estate
Media & Entertainment
Relevant Teams
Legal
Business Development
Research and Development
Executive Leadership
Human Resources
Information Technology
Finance
Operations
Procurement
Compliance
Corporate Strategy
Innovation
Product Development
Investment
Relevant Roles
Chief Executive Officer
Chief Legal Officer
Legal Counsel
Business Development Manager
Project Manager
Research Director
Chief Technology Officer
Innovation Manager
Human Resources Director
Procurement Manager
Chief Financial Officer
Operations Manager
Investment Manager
Compliance Officer
Technical Director
Strategic Partnership Manager
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