Understanding Confidential Information Obligations

The obligation to keep information confidential isn’t always about contracts; it can arise by operation of law, even if nothing is written down.

Once confidential information is shared, a duty exists not to misuse or disclose it. Breach that duty, and you could be facing:

  • Legal action for breach of contract
  • Court orders to prevent further disclosure (injunctions)
  • A demand to repay profits made from misusing the information

If you suspect someone is about to leak or exploit your confidential information, timing is everything. You could lose the right to protection if the information is no longer considered “confidential.”


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