Protect Your Business With Non-Disclosure Agreements
People often don't think about the need to protect and safeguard their ideas, but they should. Ideas are the lifeblood of any business and they can be both a gift or a curse.
The purpose of this post is to help you understand what non-disclosure agreements are, the reasons why you might want one and how to go about getting one for your business if necessary.
As you'll see, non-disclosure agreements are used by a wide range of businesses to protect their most valuable assets: confidential information and trade secrets.
I will discuss the reasons why you might want to use a non-disclosure agreement and I'll also show you how, how to research companies that have signed NDA's, when and where it should be signed, what the basic terms of an agreement are and how some other important clauses should be included in it.
Chapter One - What is a Non-Disclosure Agreement (NDA)? [Article Continues Below] But first...
Chapter TWO - Why Would You Want to Use a Non-Disclosure Agreement? [Article Continues Below] But first...
Chapter THREE - How to Research Companies that Use NDAs [Article Continues Below] But first...
Chapter FOUR - Who Should Sign an NDA? [Article Continues Below] But first...
Chapter FIVE - What Are Some Sample Clauses to Include in an NDA? [Article Continues Below] But first...
Chapter SIX - Where to Find Sample Clauses for an NDA [Article Continues Below] But first...
Chapter SEVEN - How to Prepare a Non-Disclosure Agreement (NDA) [Article Continues Below] But first...
Chapter EIGHT - How a Non-Disclosure Agreement (NDA) Helps Protect Your Business [Article Continues Below] But first...
Chapter NINE - The Different Types of NDAs [Article Continues Below] But first...
Conclusion & Resources Mentioned in This Article [Article End]
This article is brought to you by http://www.TheProtectorsOnline.com and written by Will Rosenstock.
In this article, we will discuss the many different business uses of non-disclosure agreements and what they are, who should use them and why they could be the perfect way to protect your business.
How to Use a Non-Disclosure Agreement In Business
But first, let's talk about what NDA's are.
A non-disclosure agreement (NDA) is a contract that states that one party should not share sensitive information with any other party without permission. The term "sensitive information" refers to any confidential or proprietary materials that a company wants to keep out of the hands of competitors or people who may steal their ideas.
The most common type of NDA is a confidentiality agreement.
In addition to confidentiality agreements, NDAs can cover any specific topic or area that needs to remain private between two parties. These agreements are sometimes referred to as "Confidential Security Agreements" and they help cover additional areas such as business methods and know-how.
For example, let's say that I am going to launch a new product in the pet industry called The Miracle Dog Treadmill. Someone else may have a similar idea and doesn't want me to beat them to the punch by releasing it first. That other person could attempt to get my idea from me through theft or simply by buying it from me for less than its worth (a common business practice).
A confidentiality agreement (NDA) centers around the idea that if a customer or employee is privy to confidential information than they should not use it for their own personal gain.
If you have a business and you want to protect your hard-earned ideas and keep your valuable information out of the hands of competitors, employees, customers, or anyone else - a non-disclosure agreement is the way to do it.
Why You Should Use an NDA
There are numerous reasons why every business owner should consider using non-disclosure agreements (NDAs) with his or her employees, clients and partners. The reasons range from protecting your idea, to keeping trade secrets out of the wrong hands, to preventing unnecessary litigation.
Another reason why you may want to use a non-disclosure agreement with an employee is because it could save you a lot of money.
In fact, if your business is based on any type of confidential information that would be especially useful for competitors or other businesses to know about - you should definitely consider using an NDA.
Here are some specific instances where using an NDA could be especially helpful:
If you have spent a lot of time and money developing a product or technology, you need to protect your idea from being stolen by others. If you invested in a new software program, for example, you would want to make sure that no one else could easily reverse engineer the code and claim it as their own. However, there are other reasons why an NDA might be useful as well.
A confidentiality agreement (NDA) will help protect your business methods and know-how - information which can fetch a high price on the open market if it ends up in the wrong hands. If you are in a highly competitive business, your know-how might be the only thing that can separate you from the competition.
In addition to protecting ideas and methodologies, NDAs can help protect your customer data as well. If you have collected any data about your customers or clients that is unique or special to you - an NDA could be the best way to keep it out of the hands of competitors.
However, it's important to remember that there may be some laws in place which protect trade secrets and confidential information owned by businesses.
Conclusion
Non-Disclosure agreements are a very useful tool to help protect your business from loss.
In addition to helping you maintain absolute control over the ownership and direction of your own business, non-disclosure agreements can help you keep your information safe from theft as well.
For more information or advice on non-disclosure contracts or for a free confidential consultation about any aspect of this article, call (973) 323-7233 or email info@TheProtectorsOnline.com
Disclaimer: This article is not intended to be legal advice and only applies to the laws in the United States of America. Laws vary by state and country so be sure to check with a local attorney before using this article as a reference.