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Nondisclosure Agreements Laws and Regulations

Source: /guides/nondisclosure-agreements-laws-and-regulations-38492/

A nondisclosure contract is an agreement between two or more parties to keep trade secrets or other financial information from being available to the public. These agreements often protect specific products or intellectual property. Read More »

Nondisclosure Agreements

Source: /guides/nondisclosure-agreements-17295/

Nondisclosure agreement forms provide legally binding protection against the misuse and/or misrepresentation of your company's proprietary information. By requiring your employees as well as potential business partners and affiliates to sign non-disclosure contract forms, you are taking valuable precautions to protect your company's closely guarded data, and safeguarding your image as well. Read More »

Nondisclosure Agreements


When it comes to protecting proprietary information, "Don't ask, don't tell" simply doesn't fly. That's where a nondisclosure agreement (NDA), or confidentiality agreement, comes in. Whether your company needs one depends on a variety of factors, including the nature of your products and business relationships.

Nondisclosure agreements can exist between various individuals and entities you do business with, including:

  1. Temporary or permanent employees
  2. Independent consultants or contractors
  3. Potential investors
  4. Prospective customers who might need access to proprietary information before making a purchase decision

Find out if you need a nondisclosure agreement

Whether you need one depends upon the complexity of the relationships between you and other parties involved. It also depends upon the nature of the information you're seeking to protect, such as an invention, proprietary technology or financial information.

State terms clearly

One key issue to resolve early on is whether the NDA is one-sided or mutual (if information will be shared by both parties). The information to remain confidential should be clearly spelled out, as well as any obligations on the part of any party, and the time period of the agreement.

Hire an attorney

Unless you're a contracts and liability expert, it's a good idea to seek legal assistance. If you do feel sufficiently capable, basic NDA forms are available for download at legal sites.
  • Many major corporations, including Microsoft, have made their nondisclosure agreement forms available to the public for reference.
  • Consider putting nondisclosure language in employee handbooks to emphasize their importance. It may not carry equal legal weight as a formal contract, but it will emphasize the need for trust among employees.
  • If you leak key info at a meeting without an NDA, it's considered public disclosure.
  • Consult an attorney to find out if you need to apply for patent protection in addition to drafting an NDA.