Whenever you work with another business party, and allow them a certain degree of access to your creative work, some sort of contract(s) must be drawn up. Namely, you must strongly consider setting in stone a non-disclosure agreement. With that being said, please continue reading to learn how non-disclosure agreements are used and how an experienced Essex County, New Jersey intellectual property lawyer at The Ingber Law Firm can help you determine whether you should establish one.
What are non-disclosure agreements for intellectual property?
In simple terms, a non-disclosure agreement for intellectual property is a legally binding contract between two or more parties that prevents the sharing of sensitive information to protect it from misuse of any kind. Specific pieces of intellectual property that may benefit from such an agreement include an original business idea or strategy, a business’s technical data, unpublished creative work, an invention prototype, and more non-public information. Below are the key elements that make for an effective non-disclosure agreement:
- A clear identification of the recipient parties who are expected to maintain secrecy with the confidential information.
- A clear identification of the nature of the confidential information (i.e., idea, strategy, data, work, prototype, etc).
- A clear identification of the duration the recipient parties’ confidentiality obligations are supposed to last.
- A clear identification of the recipient parties’ permissible uses of the confidential information.
- A clear identification of the legal recourse the recipient parties will face for any case of breach.
Under what circumstances should I use a non-disclosure agreement?
It may be considered in your best interest to establish a non-disclosure agreement in the early stages of your business relationship with another party. This is so you can almost guarantee the other party will not and cannot commit intellectual property theft or otherwise do anything that may jeopardize your competitive advantage. Overall, by signing this contract, you and the other party are solidifying the respect and trust in your business relationship. Without further ado, the following are other circumstances in which you should utilize a non-disclosure agreement:
- Your business entity may be merging with another or may be acquiring another.
- Your business entity may also be negotiating a licensing agreement with another.
- Your business entity may heavily depend on the contributions of contractors and freelancers.
- Your business entity may frequently onboard new employees who need to know this confidential information.
- Your business entity may be pitching to prospective investors who need to know this confidential information.
Your biggest takeaway from this blog should be not to wait to implement your non-disclosure agreement. Retain the services of a skilled Essex County, New Jersey intellectual property lawyer from The Ingber Law Firm today. We look forward to hearing from you and taking on your case soon.
