Companies routinely use Non-Disclosure Agreements (NDAs) to
protect confidential information shared with potential acquirers,
consultants, and other third parties. But companies cannot merely
rely on stock NDAs to protect that information. They should
understand each NDA's procedures for designating information as
"Confidential" (and ensure compliance with them), and
grasp the interplay between NDAs and state trade secret laws in
terms of imputing duties of confidentiality.
So, you (Party A) have just entered into an NDA with another
company (Party B) to facilitate a potential acquisition or
partnership. The NDA requires that any document must be designated
"Confidential" to be considered Confidential Information
or, if information is disclosed orally, it must be identified as
"Confidential" at the time of disclosure and later
reduced to writing and designated as "Confidential."
These are typical terms.
