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The Corporate CounselorLJN NewslettersNewsSections

Company Confidential

By David J. Walton

What is confidential information? Just about every employer has information it claims is “confidential” ' typically something unique to the business. But many employers mistakenly believe all of their information is “confidential” under the law. In fact, many standard confidentiality clauses classify everything, including the proverbial kitchen sink, as confidential.

These overbroad notions actually do a disservice to companies ' making it increasingly difficult for courts to determine what is truly confidential and deserves legal protection. Because their analysis is very fact-intensive, courts have actually reached conflicting and sometimes contradictory decisions. As a result, it can be challenging for companies to predict exactly what information will be deemed confidential.

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