When You Should Use A Non-Disclosure Agreement

There are multiple layers and components that are infused into a company to make it successful. Regardless of whether your business offers goods or services, there are systems, processes, and procedures that go into creating them. You may use a specific type of software when developing a product, an algorithm, or even a client list that you don’t want to share with competitors. 

Non-Disclosure-Agreements (NDAs) are a means to protect your most valued information. They exist because there will be times when you will have to share your guarded information with employees, potential investors, or another company. For instance, when you meet with a potential investor, you may be required to provide financial records. NDAs are a form of mitigating the risks associated with doing so. 

The Basics of NDAs

NDAs are appropriate when you have to share protected information with outside vendors or third parties. NDAs are one-sided, meaning that only one person or party is putting forth confidential materials. One of the most common reasons you would need to use an NDA is to ensure information doesn’t leave your company when the employees do. In other words, your employees will likely need to:

  • Access data
  • Use proprietary software 
  • Be a part of the systems and processes you utilize 
  • Access your client lists

NDAs prevent your employees from sharing these components of your business if and when they leave the company for whatever reason. The same line of thought extends to vendors and contractors. 

Meeting With Potential Buyers 

Let’s look at this from a different perspective. Imagine you have created a product solely to sell to another business. For instance, you developed a system for protecting data when it gets transferred. If you plan to license your product, an NDA could prevent companies from reverse-engineering it for their own use. 

Experienced attorneys should write NDAs. When one party breaches the agreement, they could be exposed to litigation and other penalties (even criminal charges). If your NDA goes before a judge, will they interpret it as you had intended? Your attorney ensures that the NDA identifies the appropriate parties, what is to remain confidential, the extent of the NDA, and how long it is to remain in effect. Whereas many NDAs last for several years, it is essential to remember that you have ways of protecting your intellectual property outside of NDAs to extend that timeline. 

Meet With an Employment Law Attorney Today 

NDAs are a form of protection and can prevent people from being taken advantage of. At the Law Offices of Robert Dawson, we are here to protect and empower people. We have worked with clients whose rights have been violated by larger businesses and will stand up for what is right. If you have an employment law issue, contact us today to schedule a consultation. We are eager to learn about your situation to see if we can provide the assistance you need.

The following two tabs change content below.

Law Office of Robert Dawson

You have more power than you realize. If you need a professional attorney who has built a reputation within employment and business law, contact the Law Offices of Robert Dawson. We are passionate about protecting our clients and pursuing their interests. Contact us for tailored legal solutions.

Latest posts by Law Office of Robert Dawson (see all)