Share on LinkedInShare on LinkedIn

ARTICLE · 09 FEBRUARY 2017

Virtual Reality, Facebook, and a costly Non-Disclosure Agreement (NDA)

Clients often question the value of having an NDA, but for US technology company ZeniMax, an NDA was very valuable.

AustraliaIntellectual Property

In light of a number of recent court decisions in Australia and the United States, companies with computer-implemented inventions are looking at a broader range of options, in addition to the more usual patents and copyright protections, to maintain an advantage in commercialising their valuable technology in intensely competitive and rapidly moving fields. One such option is the rigorous use of non-disclosure agreements (NDA) or confidentiality agreements with potential collaborators and partners.

Often clients question the value of having an NDA in place; the enforceability of such agreements has been met with a certain degree of scepticism in recent years.

For technology company ZeniMax, an NDA has, however, proven to be very valuable indeed. On 1 February 2017, a Texas Court found that Virtual Reality technology leaders Oculus had, by extension from actions of a company founder, breached an NDA with ZeniMax. This resulted in an award of half a billion dollars

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from