Non-disclosure agreements (NDAs) prevent sensitive business information from falling into the wrong hands. They are often used when a business collaborates with others in order to develop a new product or improve on an existing one.
While NDAs are beneficial, you must take the proper steps to ensure yours is legally binding and effective. Here are a few essential things you can do.
Take plenty of notes when working
Proper documentation is a must to identify any potential breaches after the fact. That is why you should enlist a person to document meetings and all interactions with the other party to ensure you know what information they received. This is especially important when it comes to information discussed verbally, which is often difficult to recall or subject to disagreement between the two parties.
Make sure information is clearly labeled
It is difficult to claim information is confidential when it is not clearly labeled as such. That is why you must make it clear that any information conveyed falls under the protection of the NDA. You can do so by labeling documents confidential or conveying their confidential status verbally when discussing a project. The more transparent you are, the less confusion.
Give copies of the NDA to all relevant staff
You do not want your staff to accidentally share confidential information with the wrong parties. Fortunately, you can avoid accidental disclosures by making workers fully aware of the terms of the NDA. Providing copies allows staff to read through the document in detail, so they have a better understanding of its terms. They can also consult the copy if they ever have questions.
An NDA can protect your business, but only when used effectively. Fortunately, a little forethought and planning can go a long way.