Signing NDAs (non-disclosure agreements) is a fairly common practice. In fact, this often leads to inattention – because the parties may not even read the document! Whether or not the overall agreement has a fixed term, the confidentiality obligations of the parties can be established for a specified period of time. Survival periods of one to five years are typical. The term often depends on the nature of the information and how quickly the information changes. A number of transactions and business relationships include either the disclosure of confidential information by one party to another or a reciprocal exchange of information. In both cases, the parties should have a confidentiality agreement. Very often, if you read the agreement carefully, and perhaps if you work with consultants, you can adjust the agreement to reduce the risk. You might say, for example, that an organization is asking you to sign a confidentiality agreement that I will not disclose forever. Forever, it`s very long. As an organization, you can agree to sign a limited confidentiality agreement, but you want to reduce the commitment to just six months. You can also include a limitation of overall liability, so you are not liable indefinitely if you make a mistake. You could say that your maximum liability is $5,000.
The quintessence is that if someone asks your organization to sign some kind of confidentiality agreement or clause, you should stop, think carefully and think about how to negotiate a narrower margin of manoeuvre for that commitment. Unfortunately, even if everyone signs an NDA, there are limits to what they can cover. One of the main problems faced by three-party companies is third-party disclosure. For example, you can get a customer to sign the agreement. B, but what about this client`s staff? To be sure, you should have everyone who has access to your company`s confidential information sign an NDA. This includes business partners, employees, customers, their employees and independent contractors. Create a checklist and check it out every time you work with someone to make sure you haven`t forgotten anyone. In certain circumstances, parties may disclose certain confidential information to each other, but not on a reciprocal basis. Instead of concluding a full confidentiality agreement, the parties enter into a mutual confidentiality agreement in which the scope and nature of the confidential information each party will disclose can be defined separately and their confidentiality obligations and access and use restrictions may vary accordingly.