Non-Disclosure Agreement (NDA)

A legal agreement where parties agree not to disclose or use confidential information shared with them

Risk Management

What It Means

A Non-Disclosure Agreement (NDA) is a legally binding contract that prevents the unauthorized disclosure or use of confidential information. It defines what information is protected, how it can be used, and the duration of confidentiality. Companies often use NDAs when dealing with potential partners, investors, or suppliers. For example to safeguard novelty in inventions, or to reduce the risk of business plans and technical data being leaked or misused.

Why It Matters

Using NDAs strategically protect your IP:

Safeguards your competitive edge

Allows you to discuss technical details, business plans, and financial data with potential partners, and seeks to prevent them from using your proprietary ideas for their own benefit.

Enables open collaboration

An NDA provides a framework for negotiations and partnerships. It sets clear rules, allowing for more transparent and productive discussions about technology, joint ventures or investment.

Builds trust and provides legal recourse if breached

Demonstrates a commitment to confidentiality and gives you a clear legal basis to seek damages or an injunction if that commitment is breached.