About Non- Disclosure Agreements and how they can save your business. Your business has several assets that make it what it is today, and you must protect them. Some of these assets are ideas, information, and other types of intellectual property. A very simple way to protect your intangible assets is called a non-disclosure agreement.
Non-disclosure agreements are legally enforceable contracts that create a confidential relationship between a person with valuable information and a person they will share it with. This confidential relationship means that both parties are responsible for protecting the information shared and not disclosing it to anybody else. NDAs focus on the information privacy of a person or a company, while other contracts like service or sales agreements focus more on the terms and conditions of a transaction.
Breaking an NDA can trigger complicated legal ramifications. NDA cover offers wide protection to your intellectual property so that even accidental disclosure is covered. The three primary functions of an NDA are:
- Identify protected information
When you draw a line between the information that needs to be protected and the information that can be freely disclosed, it allows parties to understand what they can share and what they cannot.
- Protect sensitive information
Signing an NDA creates a legal obligation to keep sensitive information protected. Therefore, any leak of that sensitive information is a breach of contract.
- Protect patent rights
Any disclosed information before patenting an invention can lead to stolen intellectual property. An NDA can protect an inventor while they develop their new technology, product, or concept.
NDAs ensure that companies move forward safely. If you need to protect your intellectual property, contact a business lawyer. Focus Law is an established and growing law firm that helps clients with various needs, including non disclosure agreements and intellectual property. Call us today at (714) 415-2007, or schedule a Kick-off meeting by clicking here.