Essay On Non Disclosure Agreements

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In the ever-changing world today, companies are continuing to innovate so they can maintain a competitive advantage. In order to keep their ideas secret, companies use legal documents called non-disclosure agreements or confidentiality agreements. Thousands of companies sign these contracts with other businesses and their own employees to ensure that current projects, innovative ideas, or new products are undisclosed from competitors. NDAs provide a level of protection and comfort when disclosing information to another party.
A non-disclosure or confidentiality agreements are contracts between two or more parties that outline confidential material, knowledge, or information that the parties wish to share with one another. An NDA creates a …show more content…

A unilateral NDA is where there are two parties and only one party anticipates disclosing information to the other party and requires that the information is secure from disclosure to other parties. This type of agreement is common in patent laws, trade secrets, and major announcements. A bilateral NDA is a two-way agreement where the two parties disclose information to each other and protect that information from being disclosed further. This used mainly in joint ventures or mergers. A multilateral NDA has three or more parties where at least one of them discloses information to the other parties and protects that information from being further disclosed. This eliminates the need for multiple unilateral or bilateral NDAs but can be more complex because all the parties involved would have to reach an …show more content…

Breaking the agreement is called a breach of contract, which is a failure, without legal excuse, to perform any promise that forms all or part of the contract. When a party finds out that their agreement has been breached the first step they take is to investigate and gather all the evidence they have. The party needs to find concrete proof in order to bring a strong court case. Once they have gathered the evidence, the next step is to consult with their attorney so they can review the NDA and evidence to find the best course of action. This is the step where they may send a cease and desist letter to the breaching party. If the breaching party ignores the cease and desist letter, then the last step is to take legal action against them. When a certain party or employee violates an NDA, the non-breaching party can sue for damages or apply many other different penalties. The typical penalties include a fine, Mandatory restitution of the value of the stolen information, job termination, loss of future job prospects, jail time, or court probation. These penalties can get pretty hefty when dealing with a large corporation. For example, there was the RRK Holding Company v. Sears, Roebuck & Co. court case. The RRK Holding Company manufactured a spiral saw. The company entered into an NDA with sears to sell the product exclusively at their store. During negotiations, the

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