Does My Business Need a Non-Disclosure Agreement?

One of the most important steps that any business can take to protect its future is by properly utilizing Non-Disclosure Agreements. Non-Disclosure Agreements, commonly known as NDAs, are legally binding contracts between two parties who agree to keep certain information confidential. They are commonplace in the business world, and are typically signed in the contract phase between employer and employee or future business partners.

What do you have that should be protected? No matter what type of business you have, from a worldwide tech company to a small local salon, you have a lot more than you think. It is helpful to think of what to include on an NDA as anything you would not want the general public or your competitors to know. This can include inventions, upcoming plans for products or projects, marketing materials, software you use, formulas, recipes, pricing, or your client list and collected information.

Business elements such as formulas, designs, and processes are typically known as “trade secrets,” but that does not mean they are automatically kept secret! Creating an appropriate NDA for your employees to sign is an important measure to protect your information. It can be as simple as protecting your pricing sheet and your customer list, which would prevent competitors from reaching out to your customers. You would also earn your customers’ trust by protecting their personal data.

Successfully implementing an NDA takes more than just writing one, however. You need to make sure it is taken seriously in your work culture. Take the extra step and communicate to your employees that they should not be spreading the protected information around. Breaking an NDA can result in a lawsuit, so simply making sure that your employees understand you take it seriously will lead to more respect for protecting your information.

There is no one-size-fits-all approach to writing an NDA. You need to make sure to include what specific information you want protected. You will also need to set a time limit (five to ten years can be typical,) since NDAs that continue on forever are not legally binding. Creating an NDA is not something to be taken lightly, since a simple wrong wording can leave your business and your information legally vulnerable.

At Cueto Law Group P.L., we have experience writing Non-Disclosure Agreements. We can help you include elements you may not have even considered need protecting. Contact Cueto Law Group P.L. to get started protecting your information today. From boardroom to courtroom, we’ve got you covered!

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Cueto Law Group, P.L.

Based out of Miami, Cueto Law Group offers an extensive range of legal and business counsel to individuals, entrepreneurs, and corporations.

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