As of lately Non-Disclosure Agreement’s (NDA’s) have been thrown around a bit, but what is it and what does it mean for you exactly…
Also known as a secrecy agreement or confidentiality agreement, an NDA is a legal contract between two or more parties, that of which lists and outlines information that the individuals within those parties wish to share for a certain purpose, with intent to exclude access for third parties.
But why are they needed?
Well typically confidentiality agreements serve three key functions: protect sensitive material with a promise to not release any information shared, concept development to help the inventor keep patent rights, illuminates the lines between privacy and fair game.
For some, employers might have their employee sign a NDA, or have a confidential agreement included in their entry paperwork restricting an employee’s use and dissemination of a company-owned-knowledge.
Although they can be useful such as protecting one’s rights and patent, there has been a debate in the Massachusetts House, made by Democratic State Representative Diana DiZoglio on the practice of non-disclosure agreements and how they should be ended completely; however, the new rules would limit their use and not eliminate them.
In the business world today, there are various instances in which we may want to share confidential information with another party, but to do so safely each party must be bound and responsible, respecting the information provided, thus an agreement must be made. If it is one-sided like other forms of Non-Disclosure Agreements, contemplate which side will be sharing confidential information with the other side.
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