confidential information
Definition
Confidential information is any private business data that you want to keep secret from competitors and the general public, such as your customer lists, pricing strategies, trade secrets, or financial details. When you share this information with employees, partners, or vendors, the law can protect it as long as you take reasonable steps to treat it as secret and often have people sign agreements promising to keep it private.
Example
If you share your secret sauce recipe and supplier contacts with a new business partner, that information counts as confidential, and your partner cannot legally turn around and share it with your competitors.
Watch Out
Many business owners assume information stays protected automatically, but courts often expect you to actively label sensitive materials as confidential and have the right agreements in place before sharing them.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.