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)

Join the conversation

4 comments

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

Have you experienced a breach of a non-disclosure agreement? What happened?
Cancel
Do this mean that if receive something and do sign a non-disclosed agreement and agree not speak about for ten years, do this mean that it can't be taken from me unless I speak about.
Cancel
Timely blog post - I was fascinated by the info , Does anyone know where my business might find a template HBS Non-Disclosure Agreement example to work with ?
Cancel



Do you have any lucrative business idea or existing business that needs funding? We help individuals and companies to obtain funds for business expanding and to setup a new business ranging any amount. Get funded at affordable interest rate of 3%,for more info contact us via email: dominionloanfirm.ltd@outlook.com
Cancel

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

SearchSecurity

  • password

    A password is an unspaced sequence of characters used to determine that a computer user requesting access to a computer system is...

  • adware

    Adware is any software application in which advertising banners are displayed while a program is running.

  • botnet

    A botnet is a collection of internet-connected devices, which may include PCs, servers, mobile devices and internet of things ...

SearchHealthIT

SearchDisasterRecovery

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

  • mass notification system (MNS)

    A mass notification system is a platform that sends one-way messages to inform employees and the public of an emergency.

  • disaster recovery as a service (DRaaS)

    One approach to a strong disaster recovery plan is DRaaS, where companies offload data replication and restoration ...

SearchStorage

  • data migration

    Data migration is the process of transferring data between data storage systems, data formats or computer systems.

  • compact disc (CD)

    A compact disc is a portable storage medium that can be used for recording, storing and playing back audio, video and other data ...

  • secondary storage

    Secondary storage is used to protect inactive data written from a primary storage array to a nonvolatile tier of disk, flash or ...

SearchSolidStateStorage

  • SSD RAID (solid-state drive RAID)

    SSD RAID (solid-state drive RAID) is a methodology commonly used to protect data by distributing redundant data blocks across ...

  • Tier 0

    Tier 0 (tier zero) is a level of data storage that is faster, and perhaps more expensive, than any other level in the storage ...

  • PCIe SSD (PCIe solid-state drive)

    A PCIe SSD (PCIe solid-state drive) is a high-speed expansion card that attaches a computer to its peripherals.

SearchCloudStorage

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

  • Zadara VPSA and ZIOS

    Zadara Storage provides block, file or object storage with varying levels of compute and capacity through its ZIOS and VPSA ...

Close