For example Bob makes an invention. Joe comes along and argues that Bob's invention infringes on some of his intellectual property. They agree to a settlement where confidentiality is required. What would happen if Bob wanted to sell his invention? Would it make a difference if it was a company instead of an individual?
Wouldn't a buyer need to know the details of the settlement so they could comply with it? I am guessing such settlements normally would contain terms like "You will not infringe any further than what you have already (and you will pay us $XYZ for us not to take you to court)."
For example if someone buy's the company from Bob, then Joe comes back and tries to sue for the same thing again, if the settlement agreement was made confidential and couldn't be transferred to the new owner, how could they defend themselves from being sued again for what the previous owner had reached a settlement for?