Intellequity, is a business law firm located in Portland, Oregon that can draft or advise on your non-disclosure agreement. I am an experienced contract law attorney that can help you navigate the pitfalls of these specialized documents and help minimize the risk that another party will disclose your trade secrets or sensitive company information; a risk that could lead to needless and expensive litigation in the courts. Read below for more information on non-disclosure agreements and how Intellequity can help review, negotiate or draft yours.
What is non-disclosure agreement?
Non-disclosure agreements are designed to protect sensitive information or trade secrets that may be disclosed in the course of business dealings. A non-disclosure agreement (NDA), also known as a confidentiality agreement, is a legally binding contract between two or more parties that outlines information, materials or knowledge that the parties wish to share with each other for certain purposes, but wish to restrict from wider use or dissemination.
The crucial elements in an NDA typically include:
Definition of Confidential Information:
This information clarifies what information is considered confidential. It might be broad or extremely specific, depending on the nature of the agreement.
Obligations and Duties of the Receiving Party:
These are the responsibilities of the party receiving the confidential information. Typically, they must keep the information secret, not use it for their own benefit without permission, and not share it with unauthorized parties.
Exclusions from Confidentiality:
Not all information shared under an NDA is treated as confidential. Exclusions might include information that is already publicly known, information the receiving party already knew before, or information obtained independently by the receiving party.
Term of Confidentiality:
This is the time period during which the confidentiality rules apply.
Consequences of Breach of the Agreement:
This outlines the penalties if a party breaches the NDA. These penalties can be very severe.
NDAs are commonly used in various settings like mergers and acquisitions, development of new products/services, land or business deals, among others. The main idea is to prevent the disclosure of sensitive information that could harm a business if it were to get into the hands of competitors, affect a company's reputation, or affect a potential business deal or relationship.
Why should I have a written non-disclosure agreement?
A written Non-Disclosure Agreement (NDA) provides several benefits to businesses. The benefits are both legal and competitive and include:
Protection of Sensitive Information:
An NDA is essential to prevent the misuse or unauthorized disclosure of sensitive data including trade secrets, business strategies, customer lists, proprietary technology, research and development data, and patents.
Maintaining Competitive Advantage:
By ensuring that confidential information remains within the company, an NDA helps protect a business's competitive edge in the market.
Establishing Clear Expectations:
An NDA outlines what information should be kept confidential, thereby setting clear expectations for those involved. It illustrates the seriousness with which you treat your proprietary information.
Facilitating and Securing Business Relationships:
NDAs are commonly used when entering into negotiations with other businesses. They allow businesses to freely exchange necessary confidential information securely, knowing that it can't be used for any purpose outside of the defined scope.
Importantly, if an NDA is violated, it provides a legal basis for seeking damages. It gives you legal protection and recourse in case the agreement is breached.
Prevention of Unwanted Publicity:
NDAs restrict the disclosure of information to the public, helping in situations where discretion is necessary, such as in worker layoffs or unannounced changes in corporate direction.
Simply put, an NDA helps provide a secure framework within which businesses can operate and innovate without fear of important information being disclosed.
Why should I hire an attorney to create or review a non-disclosure agreement?
Having an attorney draft or review a non-disclosure agreement (NDA) is advantageous for several reasons: Here is how Intellequity can help.
Experience and Expertise:
Attorneys bring their legal expertise and understanding of the nuances related to NDAs. Intellequity can carefully craft your agreement to ensure all bases are covered, and that it fulfills its purpose effectively.
Tailored to Your Needs:
Intellequity can help customize the NDA to precisely fit the nature, needs, and context of your business, ensuring the protection of your specific type of confidential information.
Protection Of Interests:
An attorney will ensure that your interests and confidential information are adequately protected. I can identify and advise on any potential risks or loopholes.
Intellequity will ensure the NDA complies with applicable Oregon laws, including any specific regulations related to NDAs or the sector you're operating in.
Understanding of the Agreement:
Intellequity can help you fully understand what you're agreeing to - whether you're the party disclosing or receiving the information. I can ensure the terms of the NDA are fair and mutually agreed upon.
Intellequity can make sure the NDA is enforceable. This includes not only the right language and clauses but ensuring it has the right scope and reasonable terms so it is not seen as overly restrictive.
Intellequity can incorporate appropriate dispute resolution mechanisms within your NDA, which can provide an efficient and effective means of resolving any disagreements that may arise.
Given the sensitive nature of the information protected by NDAs, and the potential impact if such information is misused or improperly disclosed, the involvement of an attorney in drafting or reviewing these agreements is a wise decision. It's a preventative measure against future disputes and potential harm to the business. Feel free to call us for more information or book a consult below!