Non-disclosure agreements (NDAs) can play a critical role in the operations of virtually any business, particularly when it cooperates with another business or professional.
These agreements legally protect sensitive information, including trade secrets and information that provide a competitive advantage, from being compromised — and from being used against the company.
Here’s what you need to know:
- NDAs or confidentiality agreements can protect all types of sensitive information or any information that provides the business a competitive advantage.
- NDAs are usually drafted and agreed upon before the beginning of work that will require participation of external partners, including B2B collaboration or contractor involvement.
- The NDA should outline exactly which information is protected and how long it will be protected.
- Companies can require NDAs from anyone with visibility to sensitive information, including employees, vendors, investors conducting due-diligence, and business partners.
It is critical for businesses to seek out experienced legal representation in drafting and negotiating these agreements.
The company’s competitive advantage is only as strong as the strengths of the contracts that protect and bound it.
Those entering into an NDA — both the company requiring it and those agreeing to its terms — should proceed with caution, carefully reviewing the contract to identify all parties involved, the information that will be protected, the duration of the agreement and how it could affect future opportunities.
Chenoweth Law Group provides experienced legal guidance and representation in the drafting, negotiation and enforcement of NDAs and other confidentiality agreements that protect our clients. For more information, click here.