Tips For Startups – The Scope And Limitations Of Non-Disclosure Agreements

In an economic climate where information is often a business's primary asset, it is important that companies be able to control the disclosure of key information such as intellectual property, strategic plans, data, research and development, and financial forecasts. The surest way to prevent unwanted disclosure is simply to not share information that you wish to keep confidential, but often times this is not practical and risks stifling business growth. If and when your company decides to share this type of information with an outside third party, entering into a non-disclosure agreement (an "NDA", or sometimes referred to as a confidentiality agreement) prior to sharing the information may help prevent the receiving party from disclosing the information provided. Although an NDA has its place in commercial practice, it does not come without its limitations. For this reason, we suggest relying on an NDA as only one part of your company's practice for keeping key