When a business owner wants to invite a partner into their business there is often a nondisclosure agreement or confidentiality agreement that is entered into. When a nondisclosure agreement, or NDA, is drafted there are certain terms that need to be reviewed and agreed upon by both parties.
What is included in an NDA?
It is important for a business owner to protect their intellectual assets. In order to do this they need to draft an NDA with any potential business partners. Terms that need to be reviewed include:
- Definition of what information is confidential
- Term of the confidentiality requirement and term of the agreement
- Choice of venue for how to resolve disputes
- Treatment of trade secrets
- Restrictions on allowable uses of shared confidential agreement
- Condition that there is no requirement to share confidential information between parties
What to keep in mind when drafting an NDA?
There are a few tips that a business owner should keep in mind when they are drafting their NDA. These include:
- Understand the business’s intellectual property and continually reassess it.
- Take the time necessary to draft a NDA that protects the business and intellectual assets.
- Don’t share more than what is absolutely necessary.
- Consult a qualified attorney as early as possible in process
A legal professional who is skilled in intellectual property understands that intellectual property is just as important to a business owner as their building or their vehicles. In some cases, the entire business model may rest on a unique product or design. An attorney can help a business defend their intellectual property rights and protect their innovations and ideas.