A Confidentiality Letter is a legally binding document that protects the confidentiality of proprietary information exchanged between two or more parties. The letter defines specific information that will be kept confidential, outlines how such information can be used, and states any non-disclosure restrictions or requirements. By signing a Confidentiality Letter, both parties agree to limit the distribution, use, and disclosure of confidential information and pledge to take proper steps to protect its privacy. Furthermore, it ensures that all relevant parties are aware of their responsibilities and the consequences if they fail to uphold them.