Non Circumvention Agreement In French

Companies would be well advised to formalize the information, to ensure that this information is relevant, to develop internal policies and procedures to protect the confidentiality of that information, to review and, if necessary, to modify the employment contracts of those individuals who must be aware of this information, or partnership contracts or confidentiality agreements made by companies with third parties. Etc. If the acquisition of a stake in a company results in the disclosure of information covered by the definition of trade secrets, it is in the interest of the ceding company and the target company to clearly recognize what falls within the category of trade secrets, the confidentiality agreement, or to enter into a specific agreement regarding those secrets. The potential buyer should also endeavour to limit the risk of abusive proceedings against him, particularly in the event that negotiations fail or if the potential buyer held or could hold a stake in a competing company. Confidentiality agreements should therefore be revised to take into account this new law and the risks and opportunities that arise from this law. With the adoption of this new law, companies, which rely heavily on their know-how, will now have the means to better protect their intangible assets and thus better evaluate them. These companies can only welcome such a change, the European dimension of which will contribute to their effectiveness. However, the risk of this new legal system being misused in some cases should not be ignored. The new law provides for the payment of a fine in case of abusive procedure or procedure.

The amount of the fine can be as high as 20% of the alleged damage. It is questionable, however, whether such a fine is in accordance with the Constitution. The French Constitutional Council had censored the fine provided by the law on the duty of vigilance of parent companies as well as the penalty imposed by the so-called “Florange” law in case of non-compliance with the obligation to seek a buyer in certain circumstances. It is therefore necessary to closely monitor what the Constitutional Council will decide on this matter. The new law is in addition to other French laws also dealing with the collection or processing of information (data protection, anti-corruption policy, duty of care on the part of parent companies, etc.). All of these laws can, to some extent, affect the operations of the M-D. Information management, whether for operational or regulatory reasons, is therefore more than ever at the heart of the company`s life. This information is only used for guidance purposes and should not be considered a substitute for legal assistance. Please see the full terms and conditions of our website. The new law will allow the legitimate holder of trade secrecy to defend their rights more effectively. To this end, the law also provides for a series of measures to protect the secrecy of relevant information from civil or commercial courts.

In the absence of such measures, it would be possible for the holder of the trade secret to forego legal action to prevent the relevant information from losing its confidentiality for good. The trade secrets regime is therefore a hybrid scheme combining elements of the law applicable to intellectual property assets and elements of the liability regime that result from misconduct (as in cases of unfair competition) when it comes to the unlawful acquisition of information or breach of a confidentiality obligation.

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