Legitimate business interests clause: Copy, customize, and use instantly
Introduction
A legitimate business interests clause protects the interests of a business by defining the key assets, information, or practices that are vital to its success. It ensures that parties acknowledge and agree not to harm or infringe upon these interests during and after their business relationship. This clause is important in non-compete, non-disclosure, and confidentiality agreements.
Below are templates for legitimate business interests clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Standard legitimate business interests clause
This version defines general legitimate business interests.
The Parties acknowledge that the Company's legitimate business interests include, but are not limited to, its customer relationships, trade secrets, proprietary information, and business goodwill. The Parties agree not to use or disclose any such interests without prior written consent from the Company.
Legitimate business interests clause with customer relationships focus
This clause emphasizes the protection of customer relationships.
The Parties agree that the Company’s legitimate business interests include maintaining its relationships with customers, suppliers, and other business partners. Both Parties shall refrain from directly or indirectly soliciting or diverting any customer or supplier relationship during the term of this Agreement and for a period of [X] years thereafter.
Legitimate business interests clause with trade secrets and intellectual property protection
This version focuses on intellectual property and trade secrets.
The Parties recognize that the Company's legitimate business interests include the protection of its trade secrets, intellectual property, proprietary software, and confidential business methods. The Parties agree not to disclose or use such trade secrets or intellectual property for any purpose outside the scope of this Agreement.
Legitimate business interests clause with competitive advantage focus
This clause focuses on maintaining a competitive advantage.
The Parties acknowledge that the Company's legitimate business interests include its competitive position within the industry, its marketing strategies, pricing models, and operational efficiency. The Parties agree not to engage in any activity that could undermine the Company's competitive advantage or business operations.
Legitimate business interests clause with protection of workforce
This version protects the company's workforce from poaching.
The Parties agree that the Company's legitimate business interests include its workforce, including employees, contractors, and consultants. Both Parties shall refrain from soliciting or attempting to hire the Company’s employees during the term of this Agreement and for [X] years following termination.
Legitimate business interests clause with non-compete emphasis
This version includes a non-compete provision for sensitive business activities.
The Parties acknowledge that the Company’s legitimate business interests include its confidential business practices, products, services, and trade secrets. The Parties agree not to engage in activities that directly compete with the Company’s business within [X] miles for [X] years after the termination of this Agreement.
Legitimate business interests clause with confidentiality of proprietary information
This version emphasizes the confidentiality of proprietary information.
The Parties agree that the Company’s legitimate business interests include its proprietary business information, strategies, pricing models, and client lists. The Parties shall not use or disclose such proprietary information to any third party without written consent from the Company.
Legitimate business interests clause with protection of marketing strategies
This version focuses on the protection of marketing strategies.
The Parties agree that the Company’s legitimate business interests include its marketing strategies, advertising methods, and customer acquisition techniques. Both Parties shall take necessary steps to ensure that these strategies are kept confidential and are not disclosed or used by others during or after the term of this Agreement.
Legitimate business interests clause with trade secrets safeguarding
This clause focuses specifically on protecting trade secrets.
The Parties recognize that the Company’s legitimate business interests include its trade secrets, including formulas, processes, methods, and other proprietary knowledge. The Parties agree not to disclose or use any trade secrets outside the scope of this Agreement.
Legitimate business interests clause with customer goodwill
This version protects the company's customer goodwill.
The Parties agree that the Company’s legitimate business interests include its customer goodwill, brand reputation, and long-term relationships with clients. The Parties shall not directly or indirectly harm the goodwill or reputation of the Company during the term of this Agreement and for [X] years thereafter.
Legitimate business interests clause with restricted use of business contacts
This clause restricts the use of the company’s business contacts.
The Parties agree that the Company’s legitimate business interests include its relationships with business contacts, including clients, suppliers, and partners. The Parties shall not use or solicit these business contacts for any competing ventures during or after the term of this Agreement.
Legitimate business interests clause with non-solicitation of suppliers
This version extends protection to suppliers.
The Parties agree that the Company’s legitimate business interests include maintaining its relationships with suppliers. The Parties shall refrain from soliciting or attempting to divert the Company’s suppliers for [X] years following the termination of this Agreement.
Legitimate business interests clause with proprietary data protection
This version protects proprietary data.
The Parties acknowledge that the Company’s legitimate business interests include proprietary data, including customer lists, sales figures, and business analytics. Both Parties shall protect such data from unauthorized use or disclosure during and after the term of this Agreement.
Legitimate business interests clause with business systems safeguarding
This clause protects the company’s operational systems.
The Parties recognize that the Company’s legitimate business interests include its business systems, software, and proprietary tools used in its operations. Both Parties agree not to use, replicate, or disclose the Company’s systems and tools for any purpose other than those agreed upon in this Agreement.
Legitimate business interests clause with limitation on non-disclosure
This clause limits the disclosure of certain information.
The Parties agree that the Company’s legitimate business interests include its confidential information, including financial data, strategies, and product details. Both Parties shall take all reasonable precautions to prevent the unauthorized disclosure of such information to third parties.
Legitimate business interests clause with intellectual property protection
This version safeguards intellectual property rights.
The Parties agree that the Company’s legitimate business interests include its intellectual property, including patents, trademarks, copyrights, and other intangible assets. The Parties shall not use, disclose, or infringe upon the Company’s intellectual property without written consent.
Legitimate business interests clause with protection of technological developments
This version focuses on technological advancements.
The Parties agree that the Company’s legitimate business interests include its technological developments and innovations. Both Parties shall ensure that any new technology or development shared in connection with this Agreement remains confidential and is not used or disclosed outside of the agreed scope.
Legitimate business interests clause with non-compete for specific regions
This version includes a geographical non-compete restriction.
The Parties agree that the Company’s legitimate business interests include its market position within [geographic area]. The Parties shall not engage in similar business activities within [X] miles of the Company’s operations during the term of this Agreement and for [X] years after.
Legitimate business interests clause with confidential project data
This clause covers specific project information.
The Parties recognize that the Company’s legitimate business interests include data related to confidential projects, including project designs, bids, and financial projections. The Parties shall not disclose or use such data outside the scope of this Agreement.
Legitimate business interests clause with protection of customer contracts
This version includes customer contract protection.
The Parties agree that the Company’s legitimate business interests include customer contracts and agreements. The Parties shall not use or disclose any customer contracts or attempt to entice customers to terminate their relationship with the Company.
Legitimate business interests clause with prohibition on reverse engineering
This clause prohibits reverse engineering of products or services.
The Parties agree that the Company’s legitimate business interests include its proprietary products and services. Both Parties shall not reverse engineer, decompile, or otherwise attempt to recreate or replicate any of the Company’s products or services during or after the term of this Agreement.
Legitimate business interests clause with protection against unfair competition
This clause focuses on preventing unfair competition.
The Parties agree that the Company’s legitimate business interests include preventing any unfair competition that could harm its market position. The Parties shall not use information obtained during this Agreement to undermine or compete unfairly with the Company’s interests.
Legitimate business interests clause with non-circumvention provision
This clause prevents circumvention of the business arrangement.
The Parties agree that the Company’s legitimate business interests include its existing and potential business relationships. Neither Party shall circumvent the Company’s relationships or attempt to negotiate directly with any of the Company’s clients, suppliers, or partners.
Legitimate business interests clause with protection of marketing materials
This version protects marketing assets.
The Parties agree that the Company’s legitimate business interests include its marketing materials, branding, and advertising strategies. Both Parties shall not use, replicate, or disclose these marketing assets without written consent from the Company.
Legitimate business interests clause with non-disclosure of customer lists
This clause specifically safeguards customer lists.
The Parties agree that the Company’s legitimate business interests include its customer lists, which are proprietary to the Company. Neither Party shall disclose, share, or use the customer list for any purpose outside the scope of this Agreement.
Legitimate business interests clause with protection of business processes
This version protects key business processes.
The Parties acknowledge that the Company’s legitimate business interests include its business processes, operating procedures, and methods of doing business. Both Parties shall ensure that these processes are not disclosed or used in competition with the Company.
Legitimate business interests clause with prohibition on misappropriation of intellectual property
This clause prohibits the misappropriation of intellectual property.
The Parties agree that the Company’s legitimate business interests include its intellectual property, including patents, trademarks, and copyrights. Neither Party shall misappropriate or use the Company’s intellectual property without written consent.
Legitimate business interests clause with protection against employee poaching
This version prevents the poaching of employees.
The Parties agree that the Company’s legitimate business interests include its employees and contractors. Both Parties shall refrain from directly or indirectly attempting to hire or solicit any employee or contractor of the Company during the term of this Agreement and for [X] years thereafter.
Legitimate business interests clause with protection of pricing information
This version focuses on safeguarding pricing data.
The Parties agree that the Company’s legitimate business interests include its pricing strategies, models, and customer contracts. Neither Party shall disclose or use any pricing information for purposes other than those explicitly outlined in this Agreement.
Legitimate business interests clause with no diversion of business opportunities
This clause ensures no diversion of business opportunities.
The Parties agree that the Company’s legitimate business interests include its business opportunities, proposals, and leads. Neither Party shall divert or pursue any business opportunity intended for the Company during or after the term of this Agreement.
Legitimate business interests clause with protection of product development data
This version focuses on product development information.
The Parties agree that the Company’s legitimate business interests include its product development data, designs, and innovations. Neither Party shall use or disclose any product development information to third parties without prior written consent from the Company.
Legitimate business interests clause with no unauthorized use of proprietary software
This clause addresses the use of proprietary software.
The Parties agree that the Company’s legitimate business interests include its proprietary software, applications, and systems. Neither Party shall use the Company’s software outside the scope of this Agreement or in a manner that competes with the Company.
Legitimate business interests clause with non-solicitation of investors
This clause protects relationships with investors.
The Parties agree that the Company’s legitimate business interests include its relationships with current and potential investors. Neither Party shall solicit or encourage any investor to withdraw their investment or invest in any competing entity during the term of this Agreement.
Legitimate business interests clause with confidentiality of business strategies
This version protects business strategies.
The Parties acknowledge that the Company’s legitimate business interests include its business strategies, plans, and forecasts. Neither Party shall disclose or use these strategies outside of the scope of this Agreement.
Legitimate business interests clause with restrictions on use of competitive knowledge
This clause limits the use of competitive information.
The Parties agree that the Company’s legitimate business interests include its knowledge of competitors and market positioning. Neither Party shall use or disclose any information that could be used to the competitive disadvantage of the Company.
Legitimate business interests clause with protection of customer relationships
This version specifically protects customer relationships.
The Parties acknowledge that the Company’s legitimate business interests include its relationships with customers. Neither Party shall engage in activities that could harm the customer relationships of the Company during or after the term of this Agreement.
Legitimate business interests clause with protection of proprietary research
This clause protects proprietary research.
The Parties agree that the Company’s legitimate business interests include its proprietary research, findings, and reports. Neither Party shall use, publish, or share the Company’s research without written consent.
Legitimate business interests clause with restriction on competing products
This version limits the creation of competing products.
The Parties agree that the Company’s legitimate business interests include its unique products and services. Neither Party shall create, promote, or sell products that directly compete with the Company’s offerings during the term of this Agreement and for [X] years thereafter.
Legitimate business interests clause with protection of trade secrets
This version emphasizes the protection of trade secrets.
The Parties agree that the Company’s legitimate business interests include its trade secrets, including formulas, processes, and business methods. Both Parties shall maintain the confidentiality of these trade secrets and shall not disclose or use them outside the terms of this Agreement.
Legitimate business interests clause with no unauthorized disclosure of confidential communications
This clause ensures confidentiality in communications.
The Parties agree that the Company’s legitimate business interests include its confidential communications, both internal and external. Neither Party shall disclose any confidential communications to third parties without prior consent from the Company.
Legitimate business interests clause with limitation on competitive recruiting
This clause prevents competitive recruiting.
The Parties agree that the Company’s legitimate business interests include its ability to recruit and retain top talent. Neither Party shall directly or indirectly recruit employees or contractors of the Company during the term of this Agreement and for [X] years following its termination.
Legitimate business interests clause with non-compete for specific products or services
This version includes a product-specific non-compete.
The Parties agree that the Company’s legitimate business interests include its proprietary products and services. Neither Party shall engage in any business that directly competes with the Company’s products or services during the term of this Agreement and for [X] years thereafter.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.