Although a nondisclosure agreement, or NDA, may be one of the most basic legal agreements, it's among the most important. A carefully crafted NDA will prohibit the unauthorized use of confidential information, thereby protecting your trade secrets and that million dollar idea.
Nondisclosure agreements are typically initiated at the beginning of a business relationship between two or more parties. In most negotiations, NDAs are not meant to be permanent. Rather, they serve as an interim document while the terms, including a new set of confidentiality provisions, of a final contract are agreed upon.To be sure you are protected*, your NDA should contain the following elements:
Now that you know what to include in your NDA, it's important to note that if the contract is breached, it's possible that your secret will become public knowledge. Although you may be awarded some cash (perhaps $70 million) for the other party's violation, it might come at the risk of losing valuable secrets to your competition.
*This post suggests a document drafting guideline and is not legal advice. For that, you should consult your lawyer.