Browse Definitions :
Definition

non-disclosure agreement (NDA)

A non-disclosure agreement (NDA), also known as a confidentiality agreement, is a legally binding contract in which one party agrees to give a second party confidential information about its business or products and the second party agrees not to share this information with anyone else for a specified period of time. NDAs are used to protect sensitive information and intellectual property (IP) by outlining in detail what information must remain private and what information can be shared or released to the public.

NDAs are typically signed at the beginning of a business relationship. The information covered by a NDA can be unlimited, ranging from test results to system specifications to customer lists and sales figures. If the NDA is broken and information is leaked, it is considered a breach of contract.

Key elements of a NDA include:

  • Identification of the participants
  • Definition of what is considered to be confidential
  • Duration of the confidentiality commitment
  • Exclusions from confidential protection

NDAs are commonly used at technology companies when products are jointly developed. In such a case, the NDA is often mutual or two-way. An NDA can also be useful when a company seeks venture capital from potential backers. In this scenario, the NDA ensures that investors can access the information they need to make a financial decision, but not exploit it.

In addition to an NDA, potential investors may be asked to sign a non-compete agreement (NCA) which prevents the investor from using information acquired during negotiation to gain a competitive advantage. Such considerations are especially important when patents have been applied for but have not yet been issued.

This was last updated in April 2017

Continue Reading About non-disclosure agreement (NDA)

SearchNetworking
  • CIDR (Classless Inter-Domain Routing or supernetting)

    CIDR (Classless Inter-Domain Routing or supernetting) is a method of assigning IP addresses that improves the efficiency of ...

  • throughput

    Throughput is a measure of how many units of information a system can process in a given amount of time.

  • traffic shaping

    Traffic shaping, also known as packet shaping, is a congestion management method that regulates network data transfer by delaying...

SearchSecurity
  • Common Body of Knowledge (CBK)

    In security, the Common Body of Knowledge (CBK) is a comprehensive framework of all the relevant subjects a security professional...

  • buffer underflow

    A buffer underflow, also known as a buffer underrun or a buffer underwrite, is when the buffer -- the temporary holding space ...

  • single sign-on (SSO)

    Single sign-on (SSO) is a session and user authentication service that permits a user to use one set of login credentials -- for ...

SearchCIO
  • benchmark

    A benchmark is a standard or point of reference people can use to measure something else.

  • spatial computing

    Spatial computing broadly characterizes the processes and tools used to capture, process and interact with 3D data.

  • organizational goals

    Organizational goals are strategic objectives that a company's management establishes to outline expected outcomes and guide ...

SearchHRSoftware
  • talent acquisition

    Talent acquisition is the strategic process employers use to analyze their long-term talent needs in the context of business ...

  • employee retention

    Employee retention is the organizational goal of keeping productive and talented workers and reducing turnover by fostering a ...

  • hybrid work model

    A hybrid work model is a workforce structure that includes employees who work remotely and those who work on site, in a company's...

SearchCustomerExperience
Close