The Proprietary Information Agreement is essential for businesses operating in Saudi Arabia who need to protect confidential information during business discussions, partnerships, or service arrangements. This document is specifically designed to comply with Saudi Arabian law, including recent data protection regulations and Sharia principles. It is commonly used before entering into detailed business discussions, during due diligence processes, or when engaging with contractors, consultants, or potential business partners. The agreement covers various types of confidential information including trade secrets, technical know-how, customer data, and business strategies, while incorporating specific provisions required under Saudi jurisdiction for enforceability and remedies. It serves as a crucial risk management tool, particularly important in sectors where intellectual property and confidential information are key business assets.
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1. Parties: Identification of the disclosing and receiving parties, including full legal names, addresses, and registration details as per Saudi commercial registration requirements
2. Background: Context of the agreement, purpose of sharing confidential information, and brief description of the business relationship
3. Definitions: Detailed definitions including 'Confidential Information', 'Authorized Purpose', 'Authorized Representatives', and other key terms
4. Scope of Confidential Information: Detailed description of what constitutes confidential information under the agreement
5. Obligations of Confidentiality: Core confidentiality obligations, including handling, protection, and non-disclosure requirements
6. Permitted Disclosures: Circumstances under which confidential information may be disclosed, including to employees, advisors, or as required by law
7. Security Measures: Specific security measures required to protect confidential information, including compliance with Saudi data protection requirements
8. Return or Destruction of Confidential Information: Obligations regarding the return or destruction of confidential information upon termination or request
9. Term and Termination: Duration of the agreement and circumstances for termination
10. Remedies: Legal remedies available in case of breach, including injunctive relief and damages
11. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction of Saudi courts
1. Data Protection Compliance: Additional provisions for compliance with Saudi data protection laws when confidential information includes personal data
2. Export Control: Provisions regarding compliance with Saudi export control regulations when applicable
3. Electronic Information Security: Specific provisions for protecting electronic data and compliance with Saudi cybersecurity regulations
4. Third Party Rights: Provisions addressing rights of third parties whose confidential information may be involved
5. Non-Solicitation: Restrictions on soliciting employees or customers, if relevant to the business relationship
6. Shariah Compliance Declaration: Explicit statement of Shariah compliance, particularly important for financial institutions or when required by parties
7. Force Majeure: Provisions for unforeseen circumstances preventing performance, adapted to Saudi law requirements
1. Schedule 1 - Description of Confidential Information: Detailed list or categories of confidential information covered by the agreement
2. Schedule 2 - Authorized Representatives: List of authorized representatives from each party who may access confidential information
3. Schedule 3 - Security Protocols: Specific security measures and protocols required for protecting confidential information
4. Schedule 4 - Approved Third Party Recipients: Pre-approved third parties who may receive confidential information, if any
5. Appendix A - Form of Confidentiality Undertaking: Template confidentiality undertaking for employees or third parties
6. Appendix B - Data Processing Requirements: Specific requirements for processing personal data under Saudi law, if applicable
Relevant legal definitions
Clauses
Relevant Industries
Technology and Software
Manufacturing and Industrial
Professional Services
Healthcare and Pharmaceuticals
Financial Services
Energy and Utilities
Telecommunications
Research and Development
Defense and Aerospace
Education and Training
Construction and Engineering
Consumer Goods and Retail
Relevant Teams
Legal
Compliance
Business Development
Research and Development
Human Resources
Information Technology
Operations
Finance
Risk Management
Information Security
Procurement
Corporate Strategy
Intellectual Property
Relevant Roles
Chief Executive Officer
Chief Legal Officer
Legal Counsel
Compliance Officer
Business Development Manager
Project Manager
Research and Development Director
Chief Technology Officer
Human Resources Director
Procurement Manager
Operations Manager
Chief Financial Officer
Investment Manager
Intellectual Property Manager
Risk Management Officer
Information Security Officer
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