What is a Non-disclosure Agreement and when would I need one?
Non-disclosure Agreements (NDAs), also known as confidentiality agreements, are critical for many startup companies. A non-disclosure agreement is a legally binding contract between parties who agree to keep certain information confidential. “Confidential information” means information that is not readily available in the public domain. These agreements set forth the confidentiality restrictions for business partners, employees, independent contractors, potential investors and other people that may have access to valuable information about your company provided to them while discussing a potential business transaction. NDAs are a great way to protect a party’s confidential information but they must be carefully drafted with state law taken into consideration to avoid jeopardizing the legal protections afforded.
Examples of information that may be protected include:
Inventions, plans for an invention, or business idea shared with an employee, partner, potential partner, independent contractor, investor, or buyer
Business plans, financial, marketing, and other confidential information presented to a partner, potential partner, independent contractor, investor, or buyer
Ideas for new marketing materials, websites, blogs, etc. shared with employees
Copyrighted software programs used or partially developed by employees or other technology shared with a potential buyer or licensee
Confidential and proprietary information that may be accessed by employees or collaborators, including independent contractors hired by the business
Information, plans, ideas, etc. generated among a working group
Showing a new product or technology to a prospective buyer or licensee
Receiving services from a company or individual who may have access to some sensitive information in providing those services
The NDA must be signed BEFORE you disclose any confidential information. If one party violates the NDA by not protecting the confidential information, the other party may sue for injunctive relief to stop the release of information and recover damages.
It is important to contact a Florida licensed attorney if you would like to discuss the need for a non-disclosure agreement or you are presented with a non-disclosure agreement and need it reviewed. You can contact Wheeler Legal PLLC by calling (321) 209-5995 to schedule a consultation and find out how this firm can help you protect your assets.
Disclaimer: The information contained above is provided for general informational purposes only, and does not constitute legal advice, nor is it intended to create an attorney-client relationship. This firm aims to provide quality information, but we make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information contained in or linked to this post. Nothing provided herein should be used as a substitute for the advice of competent counsel.