NDAs can be the beginning of a great opportunity. It shows someone is interested in your work product and expands your knowledge about another company’s work product. However, the benefit of an NDA may come back against you. Its terms and its existence may create legal risk for a company in the following ways:

A) Uncertainty as to the scope of the information to be kept confidential due to vague terms, such as where your confidential information begins and their confidential information ends.

B) Unreasonable duration in light of the nature of confidential information or the purpose of the business relationship.

C) Restrictive or unfair terms as to the use of the confidential information.

D) Lack of a centralized system for NDAs, noting parties involved by company name and signatory, nature of confidential information, period of agreement, and its relevance to the company’s business strategy.

E) Inability to identify conflicts regarding the use of intellectual property sooner rather than later which may avoid the risk of expensive intellectual property litigation

Proactive oversight of NDAs reduces the risk your company’s future growth is thwarted by an NDA from your past. Stay ahead of this risk by managing your NDAs as part of your operating activities. Synesis can assist you.