An NDA is a legal contract stating that certain information is confidential, and the extent to which its disclosure is restricted to third parties.
WHAT IS AN NON-DISCLOSURE AGREEMENT (NDA)?
A non-disclosure agreement (NDA) is a legal contract stating that certain information is confidential, and the extent to which its disclosure is restricted to third parties. It can be entered into with a person or organisation. Confidential information includes trade secrets, business plans, business methods and strategies, drawings, charts and more. Software programs and code are also confidential information.
ADVANTAGE
- Protects Business Secrets An NDA is one of the most common ways to protect your trade secrets and other confidential information. Consultants and agencies, as they work with multiple organisations from the same industry, are usually asked to sign one to protect trade secrets.
- Enhances Client Relationships Businesses that work on third-party projects require their employees to sign restrictions on the use and disclosure of confidential information. It’s a good way to assure clients that their data is safe in your hands.
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FAQ
1. What is a Non-Disclosure Agreement?
It is a legally-binding contract which governs the sharing of information between different persons or organizations and sets out any conditions or limitations on the use of the information.
2. When should I use a Non-Disclosure Agreement?
You can use this agreement when you are disclosing any proprietary information having commercial value which is not yet in public domain or any other type of information that you or the other party deems it to be confidential.
3. Why should I use a Non-Disclosure Agreement?
It ensures that our information remains confidential. Also obtain intellectual property protection, such as a patent and keep your patent rights.
4. What happens if I don’t use a Non-Disclosure Agreement?
If you provide your information to another party without a Non-Disclosure Agreement, the information could be used in any way that you do not approve and you lose the ability to obtain certain forms of intellectual property protection.
5. How a Non-Disclosure Agreement does protect my information?
It identifies the information that is to be kept confidential and stipulates how that information may be used by the recipient. It requires the recipient to take reasonable measures to keep the information confidential and prohibits them from disclosing it to any other party.
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