Confidentiality or Nondisclosure Agreements

Confidentiality/Nondisclosure Agreements

Nondisclosure Agreements

I shared on my Facebook page an article published by the New York Times, Why More Start-Ups are Sharing Ideas Without Legal Protection. The legal protection refers to nondisclosure agreements, N.D.A.s. These agreements prevent ideas or technologies from being shared and stolen or copied. The downside to NDAs is that they may turn away potential partners and investors and they are expensive to enforce. Nevertheless, an NDA is something you should consider before sharing your ideas. Thinking about an NDA will help you fine-tune your pitch, identify the information you wish to share, and define the scope of what you want to present. Here are some questions you should ask yourself before deciding whether you need an NDA:

1.  Is the information you are about to share truly proprietary information? Can the information or idea be easily stolen or copied?

2.  If there is a breach of the NDA, are you willing to take steps to enforce compliance?

3.  Who is your audience? How well do you know the person(s) you will be presenting to?

Generally, if you’re not willing to go to court to enforce an NDA, if the information you will be sharing is not truly proprietary, and the person who will be receiving this information is not likely to share, steal or copy your idea, a reasonable decision is to share your ideas without the protection of an NDA. 

You may have an amazing idea for a new business or a technology startup, and it is important to be able to talk about your vision. Part of being a successful entrepreneur is practicing and perfecting telling everyone and anyone who would listen about your ideas. Certainly, seek counsel. Decide based on your idea and your own objectives whether you need an NDA.