Nondisclosure agreements (NDAs) can be used to protect
companies' confi dential and trade secret information. But
you should resist the urge to have a vendor, contractor, or
employee sign a dusty old stock NDA and assume your company is
protected under all circumstances.
The law evolves and relationships change. An NDA for protecting
business information may not be suitable for protecting trade
secrets. And an NDA for evaluating a business opportunity may not
be suitable for product development projects, contract
manufacturing, or testing. So, before signing your next NDA, take
the opportunity to ask: “Is this NDA up to date?”
NDAs for employees, contractors, and
consultants. For NDAs with employees, contractors, and
consultants, look to see if it has the whistleblower immunity
notice provision from the Defend Trade Secrets Act of 2016
(DTSA).
