NDAs are created to ensure your business is legally protecting its best ideas and information.
Whether a business has developed, acquired, or aggregated proprietary information, the competitive advantage gained is important to remaining a step ahead of the competition.
The information gathered–whether it be marketing strategies or ‘secret sauce’ recipes–becomes the foundation of your business’s success and, therefore, is incredibly important to protect.
At times, businesses are placed in situations with partners and freelancers where they must share some of their proprietary information.
While disclosing key intellectual property may seem risky, there’s an answer: Non-Disclosure Agreements.
NDAs can mitigate the risks of creating partnerships and sharing key information. Here are 4 things you need to know:
1. What Is An NDA template
A non-disclosure agreement is a written contract that one or more parties sign to ensure no confidential information will be stolen or used without approval.
A Mutual NDA is signed when all participants will be sharing proprietary information, where a Non-Mutual NDA is used in the case only one party is sharing information.
2. When Is An NDA Appropriate
Agreeing upon an NDA can be used in a number of situations dependent on the participants and industry. The agreement is normally reserved for instances where one party is presenting an invention or business idea, sharing financial and/or marketing information, or allowing access to sensitive information.
3. What is Included in an NDA
A common non-disclosure agreement is composed of the following:
- The parties participating
- A definition of proprietary information––often stated vaguely for the purpose of being all-inclusive
- The disclosure period
- Exclusions from what is considered confidential (i.e. public information)
- Any obligations to keep information confidential
- Any permissible disclosures
4. How To Get An NDA Template
NDAs are legal documents that help your company protect information and remain on the path to success. Imagine if Apple’s manufacturers hadn’t signed NDAs and had proceeded to create their own generic iPhone––it would be devastating! With this in mind, it’s important to take proper care in creating an NDA. NDA template
An effective NDA template is attached below:
Mutual Non-Disclosure Agreement
For further assistance, contact a legal advisor or NDA professional.