One of the most effective strategies businesses can use to protect their future is creating non-disclosure agreements. Commonly known as NDAs, non-disclosure agreements are legally binding contracts in which two parties agree not to disclose certain information to third parties. Read on to learn what you need to know about non-disclosure agreements.
Does Your Business Need Non-Disclosure Agreements?
Most first-time small business owners think that NDAs are for big corporations who keep their confidential information in an impenetrable underground vault. However, no matter what type of business you have or how small it is, you probably have far more than you think you do.
Do you have any information – such as plans for future projects, marketing materials, client lists, or investor lists – that you do not want the public or the competition to know? If the answer is yes, then you should consider creating a solid non-disclosure agreement for your employees and anyone else who has access to this information. Why? Because in the business world, anything can be a product, and secrets are no exception. Your confidential information is confidential for a reason: it has value.
To protect that value, you need to establish a legal strategy that allows you to go after anyone who steals your secrets to sell them to your competitors, or worse, become your competitors.
An NDA does not need to be complex. It can simply protect your customer list to prevent competitors from stealing your customers. In addition to protecting your business, you will earn your customers’ trust because you are taking steps to protect their personal information, which is something they will surely appreciate.
What You Cannot Include in Non-Disclosure Agreements
While NDAs can cover a wide range of information, there are certain things you cannot keep confidential. An NDA will not cover public records such as information filed with the SEC or the physical address of your headquarters, for example.
When it comes to interpreting the scope of a non-disclosure agreement, courts have leeway, depending on the specific language used in the contract. For example, if a party to a non-disclosure agreement can provide solid evidence that proves that they had information covered in the contract before signing it or that they acquired the information outside the NDA, in some cases, they may be able to avoid getting a negative judgment.
Creating and Implementing Non-Disclosure Agreements
Successfully implementing an NDA in Florida involves more than just writing it and having your employees sign it. You need to make sure your employees take the agreement seriously and understand the potential consequences of breaching it. Failing to meet the obligations established by a non-disclosure agreement can result in a lawsuit, so making sure your employees understand this and take the agreement seriously will make the agreement itself more effective.
However, you should not do this in a threatening way, as that can create a barrier between your employees and you and your business, making them feel they are not part of it. Your employees should not be afraid of the NDA – they should respect it and understand why it is important.
Do You Need a Non-Disclosure Agreement? I Can Create It for You
When it comes to creating NDAs, there is no universal approach. Every case is different because every business is different. When creating an NDA to protect the confidential information of your business, you need to be specific. Fortunately, you do not have to do this alone. In fact, you should not even consider doing it alone, as making a mistake can have costly consequences. I can help you create any agreement you need, including an NDA.