A non-disclosure agreement is a legal contract that creates a confidential relationship between one party with access to sensitive information and another person who will access that information. It protects the rights of the information’s owner and third parties whose information is contained in those records. They create a legally binding and enforceable agreement to keep information secret except as specifically authorized.
At Kondori & Moorad, LLP, our experienced intellectual property attorneys walk you through the basis of a non-disclosure agreements and what they can do for you. We can help protect your valuable information with a legally binding contract.
WHAT IS A NON-DISCLOSURE AGREEMENT?
Many businesses or even individuals have information they need to protect. This information could include trade secrets, intellectual property, or even negotiations you do not want shared with others. This sensitive information deserves protection and a non-disclosure agreement can help.
A non-disclosure agreement (NDA) creates a legally binding and enforceable promise not to divulge or share specific information. This confidential relationship creates these obligations on one or multiple parties, depending on the contract language.
THE PURPOSE BEHIND A NON-DISCLOSURE AGREEMENT
Non-disclosure agreements serve two primary purposes for you: confidentiality and legal protection. Confidentiality is meant to protect the specific information you want to guard. It keeps secret from others important information that you cover in your NDA.
The second purpose is legal protection. There are legal ramifications for those who breach an NDA. It can trigger ramifications such as:
- Lawsuits
- Financial penalties and monetary damages
- Criminal charges
- Loss of employment
These consequences help you enforce your agreements and better guarantee your sensitive information is safe.
WHEN DO I NEED AN NDA?
You need an NDA anytime you want to protect sensitive information from disclosure. The following include some common information you should protect using an NDA:
- Protecting Product Information: If your business enters into a sale or licensing agreement with a third party, they may gain access to your valuable information. An NDA requires they keep that information private and confidential to avoid disclosure to unauthorized parties.
- New Clients: If you onboard a new client, that client could need access to critical information. You can identify what information needs protection and identify it in your NDA.
- Mergers and Acquisitions: If you buy or sell a business, multiple parties gain access to sensitive information. You want to limit this disclosure to protect your assets, business strategies, and much more.
- Intellectual Property: An NDA can help prevent disclosure of copyrighted information, patents, and trade secrets valuable to your company.
TYPES OF NON-DISCLOSURE AGREEMENTS
Non-disclosure agreements typically fall into one of two primary types. The first is a unilateral NDA. In this type of agreement, only one party agrees not to divulge confidential information. A common example occurs in employment contracts. The employee agrees not to share the employer’s valuable information as part of their employment agreement.
A mutual NDA is a promise by both parties not to share particular information. This creates legal obligations for both parties, as well as potential consequences on both for a breach.
USE NDAS TO PROTECT YOUR CONFIDENTIAL INFORMATION
At the law firm of Kondori & Moorad, LLP, our experienced intellectual property attorneys can help you draft and enforce non-disclosure agreements. We know the hard work you put into your confidential information and how to protect it.
Contact us today to speak with our non-disclosure agreement attorneys. We look forward to speaking with you.