Posted by Alimar Private Label on 10/27/2014 to Education
A non-disclosure agreement (NDA), also known as a confidentiality agreement (CA), confidential disclosure agreement (CDA), proprietary information agreement (PIA), or secrecy agreement, is a legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to or by third parties. It's a contract through which the parties agree not to disclose information covered by the agreement.
An NDA creates a confidential relationship between the parties to protect any type of confidential and proprietary information or trade secrets. In simple terms, an NDA protects non-public business information.
Benefits of a Non-Disclosure Agreement:
- reduces the risk that information you have shared will be disclosed to, and possibly used by, third parties.
- reduces the risk of forfeiture of your valuable patent rights.
- defines in writing, specifically what (if any) information can and cannot be disclosed by the receiving party and when and under what circumstances such disclosure can occur.
- can protect any information that is disclosed to the other party, such as, processes, recipes, test results, systems, new products, client lists, other trade secrets, etc.