What is a Non-Disclosure Agreement?

Using Non-Disclosure Agreements

NDAs can be used in a variety of situations when one or more parties need to share confidential information with others. These agreements were designed to protect confidential information, such as product development, employment agreements, business negotiations, etc. Some events that can trigger the need for an NDA are presentation of new business ideas, employee onboarding, use of contractors or freelancers, third party access into sensitive data, etc.

Basic Terms of an NDA

Non-disclosure agreements come in different types, including unilateral, bilateral, and multilateral, which involve three or more parties. An NDA can be simple as long as it covers key elements for enforceability. These include the scope of confidentiality, legal names and clear identification of the parties, term of the confidentiality requirement, a clear definition of the "Confidential Information," exclusions, and breach terms.

A well-drafted NDA should provide legal protection for all parties involved and outline the actions that should be taken in particular situations, such as one of the parties merging, filing for bankruptcy, or becoming the subsidiary of a competitor. This helps to ensure that the confidential information remains protected even in the event of unforeseen circumstances.

Technology and Data

As the technology industry continues to expand, it is crucial for developers to take steps to protect their rights to their innovations. However, with growth and licensing of products and services, confidential disclosures are inevitable in the tech field. This is where NDAs become essential for developers to safeguard their intellectual property.

Moreover, with cloud storage and the use of various service providers to transmit, backup, and store data, data security becomes a priority. Vendors who handle sensitive third-party information must include special data security provisions in their contracts to prevent unauthorized disclosure.

We offer legal services to review, negotiate, and draft NDAs and contracts that provide comprehensive legal protection and limitation of liabilities in technology and data transactions.