Trade secrets in Brazil
A Portuguese entrepreneur started to negotiate with a Brazilian company with a view of joining efforts in an innovation-related project. The parties signed a Memorandum of Understanding where they included the tasks each party was committed to develop, the background each part will contribute to the project and a preliminary distribution of the budget if the funding was finally granted.
In order to ensure his clients portfolio and know-how were not unduly revealed or stolen by the Brazilian company, the Portuguese entrepreneur decided to ask his lawyers to draft a contract including non disclosure agreement clauses and penalty clauses.
Negotiations went well; however, a few months later, the entrepreneur discovered that his future ‘partner’ had decided to go on with some of the ideas and used the information disclosed during negotiations.