Non-Disclosure Agreements

Non-Disclosure Agreements

What are they and how important are they to protect new ideas?

Non-Disclosure Agreements or NDA's are formal contracts between the person(s) who wish to protect their intellectual property and a third party.

Patents for ideas take months or even years to acquire and prior to application for one many of the ideas need refinement.

So how do you ask third parties for advice prior to receiving a patent? This is where NDA's come into play.

NDA's are legal contracts between the person with the idea and the third party they wish to share their idea with but whom you wish to keep your idea secret.

The contract is written by the person who wishes to protect their intellectual property and is given to the third party to sign. In the document it legally restricts the third party from the prohibited activities which have been stated by the issuer. Prohibited activities include but are not limited to; releasing your idea to another third party without your official consent, using the idea as their own and marketing a product of the same type as your idea.

Due to the nature of the contract all clauses included in the document must be carefully written to avoid a third party finding a loophole in the contract.

NDA's should be issued prior to discussing any details with the third party.

The contract should be signed by both parties with an independent party as a witness to the signing of the contract.

This witness need not know the full details regarding the intellectual property being discussed only be present at the signing.

NDA's when documented correctly may be used as evidence in court that a consensus was reached between the two parties and should that agreement have been broken further action may be sought in regards to the penalty stated within the contract.

Further advice on Non-Disclosure Agreements is available from Ballard Inventions LTD. Including a contract writing service which will design a specific contract to the customers requirements and can for an additional fee bear witness to the signing of the contract.

Share your experiences of using NDA's below in the comments section.
Non-Disclosure Agreements Non-Disclosure Agreements Reviewed by Unknown on 08:43:00 Rating: 5

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