{"id":152,"date":"2019-05-20T10:54:42","date_gmt":"2019-05-20T05:24:42","guid":{"rendered":"https:\/\/aktassociates.com\/blog\/?p=152"},"modified":"2019-08-24T17:50:01","modified_gmt":"2019-08-24T12:20:01","slug":"non-disclosure-agreement","status":"publish","type":"post","link":"https:\/\/aktassociates.com\/blog\/non-disclosure-agreement\/","title":{"rendered":"Non Disclosure Agreement"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >In this article, we will discuss about...<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1e73be;color:#1e73be\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1e73be;color:#1e73be\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/aktassociates.com\/blog\/non-disclosure-agreement\/#What_is_a_Non_Disclosure_Agreement\" title=\"What is a Non Disclosure Agreement?\">What is a Non Disclosure Agreement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/aktassociates.com\/blog\/non-disclosure-agreement\/#What_is_the_Need_of_a_Non_%E2%80%93_Disclosure_Agreement\" title=\"What is the Need of a Non \u2013 Disclosure Agreement?\">What is the Need of a Non \u2013 Disclosure Agreement?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/aktassociates.com\/blog\/non-disclosure-agreement\/#Type_of_Non_%E2%80%93_Disclosure_Agreement\" title=\"Type of Non \u2013 Disclosure Agreement:-\">Type of Non \u2013 Disclosure Agreement:-<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/aktassociates.com\/blog\/non-disclosure-agreement\/#Who_should_sign_a_Non_%E2%80%93_Disclosure_Agreement\" title=\"Who should sign a Non &#8211; Disclosure Agreement?\">Who should sign a Non &#8211; Disclosure Agreement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/aktassociates.com\/blog\/non-disclosure-agreement\/#How_long_a_Non_Disclosure_Agreement_is_Valid\" title=\"How long a Non Disclosure Agreement is Valid?\">How long a Non Disclosure Agreement is Valid?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/aktassociates.com\/blog\/non-disclosure-agreement\/#What_is_the_confidential_information_that_is_protected_via_the_Non-disclosure_Agreement\" title=\"What is the confidential information that is protected via the Non-disclosure Agreement?\">What is the confidential information that is protected via the Non-disclosure Agreement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/aktassociates.com\/blog\/non-disclosure-agreement\/#What_are_the_points_that_should_be_kept_in_mind_while_drafting_a_non-disclosure_agreement\" title=\"What are the points that should be kept in mind while drafting a non-disclosure agreement?\">What are the points that should be kept in mind while drafting a non-disclosure agreement?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/aktassociates.com\/blog\/non-disclosure-agreement\/#General_Clauses_of_a_Non-Disclosure_Agreement_also_include_the_following_%E2%80%93\" title=\"General Clauses of a Non-Disclosure Agreement also include the following: &#8211;\">General Clauses of a Non-Disclosure Agreement also include the following: &#8211;<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_Non_Disclosure_Agreement\"><\/span><strong>What is a Non Disclosure Agreement?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A non-disclosure agreement is a formal agreement in which one party agrees to give the other party essential information about its business or products and the second party agrees not to share the same information with anybody else for a specified period of time.<\/span><span style=\"font-weight: 400;\"> Non-disclosure agreements<\/span><span style=\"font-weight: 400;\"> are very much in fashion in the case of technology companies where the products are mostly developed mutually. A Non Disclosure Agreement is in certain cases used when a company seeks venture capital from some potential financial backers as a method of assurance that proprietary secret is not stolen or leaked to someone else by the prospective investors.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1006 aligncenter\" src=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/06\/Non-Disclosure-Agreement-1.jpg\" alt=\"Non Disclosure Agreement \" width=\"700\" height=\"400\" srcset=\"https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/06\/Non-Disclosure-Agreement-1.jpg 700w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/06\/Non-Disclosure-Agreement-1-300x171.jpg 300w, https:\/\/aktassociates.com\/blog\/wp-content\/uploads\/2019\/06\/Non-Disclosure-Agreement-1-20x11.jpg 20w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_Need_of_a_Non_%E2%80%93_Disclosure_Agreement\"><\/span><strong>What is the Need of a Non \u2013 Disclosure Agreement?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A Non Disclosure Agreement is generally entered into when two or more than parties consider doing business together and are supposed to disclose proprietary information to each other in order to estimate the potential business relationship.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Type_of_Non_%E2%80%93_Disclosure_Agreement\"><\/span><b>Type of Non \u2013 Disclosure Agreement:-<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There are mainly two types of<\/span><span style=\"font-weight: 400;\"> non-disclosure agreements<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Unilateral Non Disclosure Agreement:<\/b><span style=\"font-weight: 400;\">\u2013 They should be used when one party will be sharing its confidential information to the other party.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"> For example: If company X is requesting bids for working on a project. The company Y which is soliciting for the work would have confidential information shared regarding the same project but company X will be sharing only that information which is already publically available like its published rates and experience in that field.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b> Mutual Non-Disclosure Agreement:\u2013<\/b><span style=\"font-weight: 400;\"> These are the agreements in which both the parties share confidential information that they wish to stay protected. The reasons for the same can be like seeking funds for investment.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span> <b>For Example:-<\/b><span style=\"font-weight: 400;\"> If company A &amp; B are planning to enter into a joint venture or merger. Then each company will have to disclose the information about their organization and its working.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Who_should_sign_a_Non_%E2%80%93_Disclosure_Agreement\"><\/span><strong>Who should sign a Non &#8211; Disclosure Agreement?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Any person, no matter if he is an employee, volunteer or maybe a contractor who so ever has access to confidential information or material must sign a Non-Disclosure Agreement before accessing any such information or material.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_long_a_Non_Disclosure_Agreement_is_Valid\"><\/span><strong>How long a Non Disclosure Agreement is Valid?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Usually, The dates that since when to when the agreement would be valid is mentioned in the contact. However, in case the date since when it will come in effect is not mentioned then the NDA will come into immediate effect after signing till the contract is valid. Generally, the time period of validity of a<\/span> <span style=\"font-weight: 400;\">Non-Disclosure Agreement<\/span><span style=\"font-weight: 400;\"> is 5 years.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_confidential_information_that_is_protected_via_the_Non-disclosure_Agreement\"><\/span><strong>What is the confidential information that is protected via the Non-disclosure Agreement?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Usually, the confidential information that is protected via the Non-disclosure Agreement is in the form of intellectual property like copyrights, patents, trademarks, trade secrets, financial information or specialized ways of perfuming business transactions.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_points_that_should_be_kept_in_mind_while_drafting_a_non-disclosure_agreement\"><\/span><strong>What are the points that should be kept in mind while drafting a non-disclosure agreement?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">To make sure that a well-drafted NDA is signed and also understood by those who will be privy to this very sensitive information following points should be kept in mind:-<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Be specific about what you want to remain a secret:-<\/b><span style=\"font-weight: 400;\">The person signing the Non-disclosure agreement need to know what exactly what it is that he needs to keep as a secret. Be Concise and at the same time precise about the secret information so the signing party knows his duties. This makes the drafting of the agreement more crucial part;<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>The aim of the Non-disclosure agreement is not to punish but to prevent:-<\/b><span style=\"font-weight: 400;\"> It does not aim at punishing the signing party once he discloses the secret information but the aim is to prevent the secret information from getting leaked;<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Mention the Exceptions to the Non-Disclosure Agreement:-<\/b><span style=\"font-weight: 400;\"> There must be certain times when it will be the duty of the signing party to disclose the secret information all such conditions must form a part of your exception clause.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span> <b>For Example:-<\/b><span style=\"font-weight: 400;\"> If an employee needs to provide information about the patent to a manufacturer in order to get the patent produced. These sorts of conditions must be provided in the exception clause;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> \u00a0<\/span><b>Reserve the right to the confidential information:-<\/b><span style=\"font-weight: 400;\"> you should be very clear about the fact that even if the employee is sharing the secret information all the rights to the secret information retain with you;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> \u00a0<\/span><b>Remedies in case of Breach of Agreement:-<\/b><span style=\"font-weight: 400;\"> Usually, in cases of breach of contract the remedy is in the form of monetary compensation or damages but it can be framed as per the consensus of the parties;<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"General_Clauses_of_a_Non-Disclosure_Agreement_also_include_the_following_%E2%80%93\"><\/span><b>General Clauses of a Non-Disclosure Agreement also include the following: &#8211;<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Representations and Warranties; Definitive Agreement;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Termination of Obligations;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Mutual Non-Circumvention;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Conflict of Interest;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Non \u2013 Solicitation;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">No-Poach;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Amendment of Agreement, Waiver;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Notices;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Third-Party Rights.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is a Non Disclosure Agreement? A non-disclosure agreement is a formal agreement in which one party agrees to give &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"Non Disclosure Agreement\" class=\"read-more button\" href=\"https:\/\/aktassociates.com\/blog\/non-disclosure-agreement\/#more-152\">Read more<span class=\"screen-reader-text\">Non Disclosure Agreement<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":329,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Non-Disclosure Agreements AKT Associates<\/title>\n<meta name=\"description\" content=\"A non-disclosure agreement is a formal agreement in which one party agrees to give the other party essential information about its business or products and the second party agrees not to share the same information with anybody else for a specified period of time. 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