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The benefits of a non-disclosure agreement

The hallmark of a successful business is not only having good ideas, it is the ability to protect them while staying ahead of the competition. Doing this involves forging strategic partnerships so that the business can develop new ideas and bring them to the marketplace in a timely manner.

But with any business endeavor, the success of a new relationship depends on a number of elements; the most important of which are mutual respect and discreetness. Because of this, the disclosure of sensitive information must be protected during the course of the development process. 

Because of this, companies that work together in the development of new products commonly use non-disclosure agreements to protect their respective interests. Non-disclosure agreements are essentially contracts that allow for the protection of a business’ trade secrets. The same can be used when companies bring on contractors and new employees to work on specific projects.

After all, trade secrets do not enjoy the same legal protections as patents or trademarks, as these are commonly filed with the USPTO. So a non-disclosure agreement provides a party with legal recourse in the event that confidential information is improperly disclosed.

Non-disclosure agreements can take a number of forms, and can be tailored to suit the needs of the particular relationship. However, they have some common elements, including what information is to be deemed confidential, and what recourse an aggrieved party may take in the event of a breach.

If you have additional questions about non-disclosure agreements, an experienced attorney can help.

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