What is a Non-Disclosure Agreement?
When companies want to protect certain information from reaching the hands of the competition, they usually draft a Non Disclosure Agreement ( commonly referred to as A Confidential Disclosure Agreement (CDA)). The Non Disclosure Agreement is a contract between the disclosing party and the receiving party. It covers the information of both parties.
In an employment setting, the NDA serves as a contract where employees cannot disclose internal information to either competitors or other specified third parties.
The secret information is so important to the parties that it disclosure can create substantial prejudice.
A Non Disclosure Agreement puts the receiving party on notice that there is critical information that must be safeguarded. The NDA also spells out the responsibilities of the receiving party. Thus, it is especially powerful when intellectual property rights are in dispute.
Protecting Trade Secrets
A Nondisclosure Agreement is a good way to keep your trade secrets from exposure. The protected information may include clients lists, a secret formulation, proprietary strategies that are unique to the company. Without a NonDisclosure Agreement in place, Colorado companies put themselves at great risk. The days of a handshake are long gone.
When you have a valid Non Disclosure Agreement in Colorado, if there is a breach of contract, you can petition the Court to order the other party to either stop disclosing your information. In other situations, you can litigate your rights under the NDA in a lawsuit for damages.
If you have a nondisclosure agreement with someone who uses your secret without authorization, you can ask that a court order the violator from making any further disclosures. You can also sue for damages.
Non-Disclosure Agreement Elements
When you decide to draft your NDA, the following are important points that you attorney would want to know.
- The contract would have to define and spell out what constitutes confidential information.
- Also what information is excluded
- What the obligations of the receiving party?
- What time periods are covered by the Non Disclosure Agreement?
- What other provisions do you want to include?
Confidential Information – NDA Exclusions
Information discovered by the receiving party or when the receiving party has also actual created or invented the confidential information, then this information may be excluded from the confidential agreement.
Receiving Party NDA Obligations in Colorado
The receiving party has a legal obligation to protect and act reasonably with the confidential information stated in the Nondisclosure Agreement.
- Failure to protect said information can result in a breach of contract disputes.
Although creating an NDA may seem easy, the dispute phase would actually determine have stronf your contract really is.
For help drafting a Colorado Non Disclosure Agreement, call our Denver business lawyers at 1-866-601-5518.