Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

1. What is a NDA and why do we need to have NDAs executed?

A non-disclosure agreement (NDA) is a legally binding contract in which a person or business promises to treat specific information as a trade secret and not to disclose the information to others without proper authorization.  If the trade secret is disclosed in violation of the NDA, the trade secret owner can file a lawsuit, and recover money damages.  The NDA protects a company’s competitive advantage and future revenue streams.

2. When should we use a NDA?

NDAs should be used whenever it is necessary to disclose a trade secret to another person or business for such purposes as partnership, development, marketing, evaluation or fiscal backing.  By using NDAs, trade secrets can be distributed without destroying their protected status.