If you are a Manhattan entrepreneur, you’re no doubt eager to talk about exciting business concepts with a variety of associates. However, protecting invaluable new ideas must be a consideration, and this can be accomplished by developing a nondisclosure agreement (NDA). These documents offer protection against those who might take information gleaned during discussions about your business and use it for their own advantage.
Tech.co offers some tips entrepreneurs can use to determine whether an NDA is necessary. An NDA will offer legal protection against the unwanted distribution of data once it leaves your hands, and can also help reduce expenses incurred on taking breach of information cases to court. For instance, if you plan to distribute concrete information during a meeting (such as documents containing sensitive data), implementing an NDA is highly recommended.
Distinguishing between the types of business discussions you are having can also be helpful when deciding whether an NDA is right for you. Any time talks veer into greater detail about your business (such as methods for accomplishing long term goals, or disclosures related to working relationships), protection is typically warranted. If you are simply going over what you ultimately wish to achieve with a business or concept, you may be able to forgo increased protection.
Lastly, the audience with whom you are meeting can also be a factor. Any discussions with groups or associates outside your company call for a robust NDA with clearly definable terms. The lone exception are investors; investors should be privy to certain information in order to make a sound financial decision. As a result, it’s best to only utilize NDAs with investors when absolutely necessary.