Final answer:
Yes, it is true that organizations use nondisclosure clauses in employment contracts to protect against the loss of trade secrets when key employees leave. Trade secrets, like Coca-Cola's formula, are essential proprietary information safeguarded through such legal means, particularly in high-tech industries.
Step-by-step explanation:
It is true that organizations can risk losing trade secrets when key employees leave, which is why nondisclosure clauses are often added to employment contracts. Such clauses are a vital part of protecting a company's proprietary information, which includes formulas, strategies, and processes that may not be eligible for patent or copyright protection but are nonetheless crucial to a company's competitive advantage. The famous formula for Coca-Cola is an example of a trade secret that is not protected by other Intellectual Property laws but is instead kept confidential within the company.
Moreover, nondisclosure agreements serve to prevent the outflow of sensitive information that could harm a company's interests if leaked to competitors or the public. This is especially important in high-tech industries, where the development of new software may fall into a gray area in terms of patent and copyright laws, making the protection of such information through contracts even more critical.