Companies of all types and sizes will have confidential information that arises in the course of business that is vital to the company’s success. It is generally necessary to share certain information with employees or partnering companies and contractors, which presents the risk they will expose the information or use it to their own benefit. One of the most common and straightforward ways to protect such proprietary information is to have parties sign non-disclosure agreements, also known as NDAs.
Some information that an NDA can protect includes:
- Invention designs before a patent is obtained
- Physical devices
- Software
- Formulas
- Customer lists
- Operational processes and procedures
- Marketing strategies
If you have a design or formula you are protecting as a trade secret, NDAs are essential to maintain trade secret protections. In addition, you do not want employees to quit and take customer lists, processes, and business strategies to a competitor or to start their own competing enterprise.
NDAs are Legally-Binding Contracts
Like other contracts, parties that sign NDAs are legally obligated to abide by the terms of the agreement. Business owners want to ensure that their agreements are enforceable and fully protect the information needed. Some necessary terms include:
- The purpose of the NDA and the specific information that is protected
- The duration that the NDA will last
- The parties who are able to access the specified information
It is important to have an experienced business contracts attorney draft your NDA to ensure you have the protection you need.
Consult with an Experienced Business Lawyer in San Francisco
At Primum Law Group, we assist company owners with a wide range of contract issues, including drafting and enforcing non-disclosure agreements. If you would like to discuss your options for protecting confidential information, call 415.293.8042 or contact us online to speak with a San Francisco business attorney.