[vc_row][vc_column][vc_column_text font_color=”#000000″]How do business owners keep their unique product or ideas secret and personal? A vehicle to do so would be creating a non -disclosure agreement (NDA) within the business or with third parties in which sharing may be necessary.

 

What is a Non-Disclosure Agreement?

An non-disclosure agreement is a contract in which one or more parties cannot disclose confidential information that they have shared with each other as a necessary part of doing business together. An non-disclosure agreement is like keeping a secret, and it creates a legal obligation to privacy; compelling those who agree to keep any specified information top-secret or secured. There are three key functions a non-disclosure agreement typically serves:

 

1. NDAs protect sensitive information. By signing an NDA, participants promise to not divulge or release information shared with them by the other people involved. If the information is leaked, the injured person can claim breach of contract.
2. In the case of new product or concept development, a confidentiality agreement can help the inventor keep patent rights. In many cases, public disclosure of a new invention can void patent rights. A properly drafted NDA can help the original creator hold onto the rights to a product or idea.
3. Confidentiality agreements and NDAs expressly outline what information is private and what’s fair game. In many cases, the agreement serves as a document that classifies exclusive and confidential information.

 

When might an NDA be useful?

Nondisclosure and confidentiality agreements are commonplace in today’s world. Information protected by attorney-client privilege and doctor-patient confidentiality is basically covered by an encompassing nondisclosure agreement, and even librarians are obligated to keep information about books you’ve read.

 

Other cases in which confidential information might be protected through an NDA can include:

 

Business models to be presented to a venture group for possible funding
Plans for a new tool to be to be produced by a fabrication shop
Information about clients or customers for a specific company
Lab workers who have access to test results before patients
Embargoed news releases or reviews

 

If you have any questions or need some help on getting an non-disclosure agreement for your business, CONTACT US!

 

P.S. Happy Early 4th of July! Our Uplift Law team wishes you a safe and fun 4th (:[/vc_column_text][/vc_column][/vc_row]

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