Why Non-Disclosure Agreements (NDAs) Are A Must: Confidentially Speaking

The beginning of a potential business relationship is an exciting time, whether one is an inventor with a new software application or an established business with a new joint venture in mind. It may be tempting to seize an opportunity to pursue an advantageous business relationship without waiting for paperwork to be produced and signed. However, it is essential that both parties agree to a non-disclosure and confidentiality agreement ("NDA") before any sensitive discussions occur.

NDAs serve a valuable role in memorializing the understanding that one or both parties will disclose certain proprietary and/or confidential information, which is to be protected from possible unauthorized use or theft by the party receiving such information. Only after such protections are agreed to in writing should the parties feel secure in sharing valuable trade secrets and business ideas with each other.