Successful Risk Prevention for a Client Through Advisory on Confidentiality and Non-Competition Agreements

1. The Client's Situation

Company A, a specialized digital marketing firm, requested advice on establishing effective confidentiality and non-competition clauses out of concern that executives and employees who were about to leave might use the company's core customer and strategic information to move to a competitor or start their own business. In particular, measures to protect trade secrets and block the solicitation of customers were needed.

After closely analyzing the client's internal materials and the characteristics of its business, Your Legal Team fully revised the confidentiality and non-competition agreement so that it would comply with relevant laws and precedents while remaining effective in the event of an actual dispute. We comprehensively defined the scope of core confidential information, set the period and scope of non-competition at a reasonable level, and subdivided the sanction clauses (breach penalties and liquidated damages) for violations, thereby building a multi-layered defense mechanism.

By implementing the agreement derived from the advice through re-signing with all executives and employees, the client dramatically strengthened its legal defenses against the possibility of information leakage and customer transfer. In particular, the high liquidated damages clauses in the event of a breach functioned as a deterrent, achieving a substantial risk prevention effect.