A nondisclosure agreement (NDA) is a legal agreement by which one party discloses an idea or information constituting a trade secret to another party, and the receiving party undertakes not to use this confidential information and to protect the information provided to him.
Signing a nondisclosure agreement is required in many business situations such as hiring employees, conducting business negotiations with potential suppliers and clients, and more.
One of the common situations in which a nondisclosure agreement is required is when searching for an investor who will enable development, manufacturing, and marketing of an invention. In any negotiations with a potential investor or company involved in commercializing patents, it is very important to ensure confidentiality by means of signing nondisclosure agreements prior to negotiations. It is particularly essential to do so when conducting negotiations prior to completing patent registration, as in such a situation, failure to secure a signature on a nondisclosure agreement can be considered publication of the invention and harm registration of the patent.
Our firm has extensive experience in drafting various kinds of nondisclosure agreements and providing advice with regard to protecting trade secrets and inventions at various stages of development.