Businesses worry about protecting the security of their valuable information from outsiders. A non-disclosure agreement, also known as “NDA” or a confidentiality agreement, protects sensitive company information by prohibiting the party who is receiving confidential information from sharing or disclosing that information.
An NDA may define specific information that is considered to be confidential, what the party’s obligations are in regard to confidentiality and a defined time period for confidentiality. Non-Disclosure Agreements may be used by companies who are seeking funding, utilizing independent contractors or to prevent employees from sharing sensitive information with another party.
An NDA can also be used any time that confidential information is disclosed to potential investors, creditors, clients or suppliers. An NDA is not exclusively for big business; it can also be used for contractors or freelance workers. Businesses typically enforce Non-Disclosure Agreements to deter the theft of intellectual property or ideas.
Examples of sensitive company information or content a business may want to protect include:
- Client Contact Lists
- Accounting Documents & Information
- Proprietary Formulas / Secret Recipes
- Sales & Marketing Strategies
- Future Plans & Investments
- Manufacturing Processes
- Engineering Processes