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Startup’s with disruptive technologies and ideas need to keep their trade secrets under wraps if they want to succeed in today’s fast paced work environment. An NDA can keep such sensitive information under tight lid when you cannot protect your idea via copyright/trademark/patent. A bunch of clauses can be added for breaking an NDA, where the defendant will have to pay the penalties for breaking the NDA in the form of lost income or possible criminal charges.
What is NDA?
A Non-Disclosure Agreement is a legal document which binds two parties in a confidential relationship. All parties involved in this agreement agree to contain all the sensitive information made available regarding their respective business.
Scenarios when you need an NDA
When discussing business financials or any personal information which needs to be protected, a Startup needs to have an NDA signed.
· An investor would like to wait and see some results before working with you or buy in some shares in your company.
· It is very important to consider that NDA provides significantly low protection when compared to copyrights or patents and are very difficult to protect in court.
· It might take years for a Startup to battle in court and end up losing all their money on…
