proprietary information
Definition
Proprietary information is any private business knowledge that gives your company a competitive advantage and that you want to keep secret from competitors. This can include things like your customer lists, pricing strategies, manufacturing processes, recipes, software code, or any other internal knowledge your business has developed. You own this information, and sharing it without proper protection can seriously hurt your business.
Example
If your bakery has a secret croissant recipe that customers drive across town for, that recipe is proprietary information that belongs to your business and should be protected with employee agreements.
Watch Out
If you do not take active steps to keep proprietary information confidential through contracts and security measures, a court may decide it no longer qualifies as protected information.
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.