13 Aug Why You Need A Non-Disclosure Agreement
A Non-Disclosure or Confidentiality Agreement gives you, the business owner, legal status if an investor, employee, service provider, or independent contractor tries to share proprietary or confidential information involving your business.
An NDA (Non-Disclosure Agreement) is a legal contract between at least two parties outlining confidential material or restricted access to information placing the signing party in strict confidence use of only the proprietary information for evaluation, partnership, and/ or other specific relationships, like employment.
How A Non-Disclosure Agreement Works
A Non-Disclosure Agreement provides a safeguard between your intellectual property and outside parties. Having a non-disclosure agreement in place before you reveal any details of your business plan can assist in protecting your company from future theft and legal issues during the infancy of your business venture. A well-crafted Non-Disclosure Agreement creates a legal obligation to privacy, ensuring that specified information is secure.
A standard tool in most business settings, an NDA is a surefire way to protect confidential information tied to your brand. With new concept development or product development, a Non-Disclosure Agreement can help maintain trademarks or patent rights allowing the original creator to hold onto the rights to the product or idea associated with the NDA.
NDAs and Confidentiality Agreements outline what information is private. The agreement serves as a document that classifies private and confidential information protecting the business owner and providing peace of mind as they move forward with the next steps.
The key elements in an effective Non-Disclosure Agreement include:
- Party Identification
- Scope of obligation by the receiving party
- A clear definition of what is deemed confidential
- The term of the agreement (may vary from months to years)
Consider using a non-disclosure agreement when presenting to an investor or venture group for possible funding or when sharing business strategies with clients or employees. This is a critical step in protecting the success of your new or growing business by protecting it with a professionally drafted NDA.
Still unsure as to whether your business can benefit from a Non-Disclosure Agreement? Are you interested in having a confidentiality agreement prepared for you by an experienced Lake Mary Business Attorney? Contact Bitman O’Brien & Morat, PLLC today.