The need for a online NDA agreement between two parties is as constant as the need for money in every business. A non-disclosure agreement (also known as a non-compete or non-solicitation agreement) restricts the length of time that a company may work with its competitors, its suppliers and its employees.
There are many variations on the theme of non-disclosure agreements, but most of them involve one of three elements: confidentiality, restriction on time or geographic limits.
A typical non-disclosure agreement prohibits an employee from discussing confidential information with anyone other than his or her immediate supervisor and requires the employee to keep quiet about what they learn at work. While these may seem like minor rules, they can have a huge impact on how your business operates.
What information is covered by a non-disclosure agreement?
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Any NDA information that is required to be kept confidential by law or a court order, or that must be kept confidential because it’s competitively sensitive, will fall under the umbrella of a non-disclosure agreement.
Also included within the non-disclosure agreement will be any ground rules for handling certain types of information, such as who has access to what information and how long the agreement will last.
For example, let’s say you own a construction company that specializes in building luxury high-rises. You sign an NDA with a subcontractor that details that your company is not to speak to or share any information about your clients, employees or competitors with anyone else in the company without your written permission.
Because your company is under contract with a client to build a luxury high-rise, even though your subcontractor is not your employee, you are bound by the terms of the NDA.
The Silent features for NDA Agreement
- Now that we’ve gone over what you have to consider when writing a non-disclosure agreement, let’s move on to what you don’t want to do.
- The first thing to keep in mind is whether you want to sign a traditional written non-disclosure agreement or a digital non-disclosure agreement.
- Digital NDA’s are actually pretty common these days as they can be created on websites like Confido and eSign.
- With a digital non-disclosure agreement, you simply digitally sign the document and then it’s stored in an encrypted format on the device used to sign the agreement.
A classic example of how not all non-disclosure agreements are the same can be found in the infamous “re-engineering” project. Back in the day, companies would re-engineer existing systems to better serve their internal needs.
Unfortunately, this also meant that some of the existing systems were “displaced” during the re-engineering process.
For example, let’s say that a company re-engineers its legal system: it becomes more user-friendly and less cumbersome, but all existing court cases and laws remain in place. These could be considered “displaced” obligations and could be included in a NDA agreement. As you can see, there are many different types of non-disclosure agreements and it’s important to carefully consider which one is right for your business.
Conclusion:-
It can be a challenging process to write a non-disclosure agreement that protects both the company and its customers without sacrificing ownership of its intellectual property. Instead of struggling with an overreaching document or restrictive legal language, explore the possibilities of writing your own.
There are many ways to structure a non-disclosure agreement that protects both parties while still keeping things simple and beneficial for all involved.
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