Technical information: Overview, definition, and example
What is technical information?
Technical information refers to detailed data, know-how, or specifications related to a product, process, or service. It can include designs, formulas, software code, manufacturing processes, engineering drawings, or operational procedures. In contracts, technical information is often shared between parties under strict confidentiality to protect proprietary knowledge.
For example, if a company hires a manufacturer to produce a custom device, the company may provide detailed blueprints and specifications—this is technical information that ensures the product is made correctly.
Why is technical information important?
Technical information is critical in contracts because it defines how a product or service should function. It ensures that businesses can collaborate while protecting valuable know-how. Without clear terms around technical information, companies risk misunderstandings, quality issues, or even the loss of proprietary data.
For businesses, technical information clauses help prevent unauthorized use or disclosure of sensitive details. They also set clear expectations on how information is shared, stored, and protected.
Understanding technical information through an example
Imagine a software company partners with a third-party developer to build a custom app. The contract specifies that the company will provide proprietary source code and technical documentation to guide the development. This source code and documentation are technical information, and the contract might include a clause preventing the developer from using or sharing it outside the project.
In another example, a food company works with a manufacturer to produce a new snack. The company provides its secret recipe and specific production instructions—this is technical information. The contract might state that the manufacturer cannot use this information for any other products or disclose it to competitors.
An example of a technical information clause
Here’s how a technical information clause might look in a contract:
"The Parties agree that any technical information, including but not limited to specifications, formulas, and proprietary data, shared under this Agreement shall remain confidential and shall not be used for any purpose other than fulfilling the obligations of this Agreement."
Conclusion
Technical information is essential for businesses working with partners, manufacturers, or developers. It ensures that products and services meet specific requirements while protecting valuable know-how. A well-drafted contract should clearly define how technical information is shared, used, and safeguarded to prevent misuse or disputes.
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.