>The necessity of trade secrets protection has always been evident and becomes more apparent when confidential information has innovative nature. Confidentiality agreement as an efficient tool, contrary to the regulations which are sometimes ambiguous and deficient, gives the innovator a good chance in putting the result of intellectual efforts into a protective domain based on mutual agreement. Having regarded the characteristics of IPs, this paper with specific attention to statutes, lawyer's opinions and last jurisprudence's approaches, proceeds to clarify the notion of nondisclosure agreements and analyzes the functions of confidential agreement in IP framework and surveys its role in developing of innovative ideas by procuring cooperation ground based on secured relationships and uncovers its function in commercializing confidential IPs and know-how. In addition this research shows that in despite of the existence of related general laws & statutes, confidentiality agreement has specific character, potentials and functions which have made it as inseparable part of commercial transactions of confidential IPs.KeywordsConfidentiality agreement, Nondisclosure agreement, Trade secrets, Intellectual properties, Innovations, Know-how.

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