Non-Disclosure Agreement Template | Protect Confidential Info

What is a Non-Disclosure Agreement (NDA)?

In the tech industry sharing confidential information is often essential, whether you’re discussing innovative ideas or exploring new partnerships. A Non-Disclosure Agreement (NDA) serves as a protective barrier for sensitive information that could be detrimental if disclosed.

An NDA is a legally binding contract designed to safeguard confidential details, ranging from business strategies to proprietary pricing structures. It clearly defines what constitutes confidential information, how it can be utilised, and outlines the consequences of any unauthorised disclosures. By establishing an NDA, you not only protect your sensitive information but also set the stage for a trustworthy business relationship.

If a party breaches the NDA, the non-breaching party (or parties) may have quicker recourse to take legal action with an NDA in place. Therefore, it is vital that the correct type of NDA is agreed from the outset of the relationship.

Why do I need an NDA?

Engaging with partners, clients, or vendors can lead to fruitful collaborations, but it also opens the door to potential risks. Here are some reasons why you should secure an NDA:
• Establish trust: An NDA demonstrates a commitment to confidentiality, fostering trust between parties. This can lay the groundwork for a solid and productive working relationship.
• Protect your innovations: In the tech world, intellectual property is your lifeblood. An NDA ensures that your innovations, such as software, algorithms, and proprietary processes are protected from misuse or theft.
• Legal framework: Should a breach occur, having an NDA provides you with a clear legal framework to pursue action, allowing you to address any violations swiftly.

I’ve been asked to sign an NDA. What should I look out for?

There are several implications, both legal and commercial, that arise when signing an NDA. It’s important to understand the obligations and responsibilities the NDA imposes on you. Understanding the finer details go hand-in-hand with risk management.

Mutuality is vital. Never sign a one-way NDA!

There are two types of NDAs – A mutual NDA and a unilateral or one-way NDA.

Our top tip: Never sign a one-way NDA (and make sure you check, because it isn’t always clear).

In a unilateral NDA, only one party must keep the other party’s confidential information safe and the other is free to do as they please.

Is that fair? We don’t think so. In a mutual NDA, the parties contractually agree to protect and keep each other's secrets.

Ensure the term is appropriate!

There should always be a clause in the NDA to say how long you are bound to confidentiality. In the tech world, information moves fast!

The most common duration is 3-5 years, though you can find NDAs lasting 6-10 years... or even eternity!

In most situations, perpetuity should not be accepted- yesterday’s secrets are old news!

Does the NDA protect the required information?

Ensure all the information you wish to protect is correctly set out in the NDA. A key reason to enter into an NDA is to protect your intellectual property. Intellectual Property can include things like software, code, and algorithms.

If you share your intellectual property with another party without an NDA in place, you run the risk of having that information stolen or used without your permission.

Other than legal considerations, how can an NDA help my business?

An NDA can show that you take confidential information seriously and that you’re willing to take the necessary steps to protect it.

This can help build a strong, collaborative and lasting relationship between the parties.

Why use Cloud Contracts 365's NDA template?

With Cloud Contracts 365, you can quickly create a professional non-disclosure agreement (NDA) in just minutes! Our expertly crafted templates empower you to generate a custom NDA tailored to the unique needs of your tech business. Our templates are designed by expert business lawyers and include model clauses to ensure you cover all the essential bases.

Simple and Secure
Say goodbye to the hassle of scanning, faxing, and printing. Our platform transforms how you manage NDAs with advanced security features that allow you to sign, store, and access your confidential agreements digitally. Protect your sensitive information confidently, knowing that our contract manager keeps your data secure and easily accessible.

Affordable and Transparent Pricing
At Cloud Contracts 365, we believe that exceptional legal tools should be accessible without breaking the bank. Our pricing is clear and competitive, with no hidden fees lurking in the fine print. Focus on what truly matters, growing your business, while we take care of the legal details without any financial surprises.