A Non-Disclosure Agreement (“NDA”) helps protect your business’s valuable confidential information. An NDA requires that each party be bound to keep any and all confidential information to themselves. Before speaking with a manufacturer, contractor, or exploring a relationship with another company, make sure there is a NDA in place.
An NDA serves a few critical functions:
- It protects your Company’s Sensitive information such as trade secrets or an invention that has yet been made public. By signing an NDA the participants promise not to divulge or release proprietary information.
- If you have a new product or concept that is being developed an NDA can help keep your patent rights. If there is public disclosure than you have one year from that disclosure to file a patent application. A NDA can help defer that time from starting.
- NDA lays out what is confidential and what can be disclosed and how to keep your confidential information private.