What Is a Non-Disclosure Agreement?
A Non-Disclosure Agreement (NDA) is a legally enforceable contract between a disclosing party and a receiving party, designed to protect confidential information, trade secrets, and proprietary data. These agreements are commonly used in businesses to safeguard sensitive corporate information, maintain patent rights, and distinguish between what can be disclosed and what must be kept confidential. When individuals sign an NDA, they commit to keeping the shared information confidential. If they breach the agreement and disclose the protected information, the disclosing party can take legal action, seeking damages. Having an NDA provides competitive advantages for a business owner, and consulting with a non-disclosure agreements lawyer in Denver ensures enforceability under both Colorado and federal law.
The Benefits of Non-Disclosure Agreements for Your Business
Businesses use non-disclosure agreements (NDAs) primarily to protect trade secrets that do not enjoy the protection of patent, copyright, or trademark law. A trade secret can be anything from the formula for the KFC secret recipe to lists of key customers. Colorado law places certain restrictions on ‌NDAs.
NDAs restrict the use of confidential information by employees both during and after their employment. To enjoy legal recourse to the courts for misappropriation of your company’s trade secrets, your company must demonstrate an effort to preserve its confidentiality. A well-drafted NDA accomplishes this purpose.
Our Successful Cases
Our NDA Process
Our law firm employees have extensive experience in planning, drafting, reviewing, and revising non-disclosure agreements, as well as other types of confidentiality agreements. We are well-versed in drafting the following types of confidentiality agreements, among others:
- One-way NDAs, where one party is the disclosing party, and the other party is the recipient. The agreement binds the recipient to certain specified uses of the information referred to in the NDA
- Two-way NDAs, where both parties are disclosing sensitive information to the other party, and both parties have confidentiality obligations regarding the information they receive
- Special kinds of confidentiality agreements apply to M&A transactions and other special business deals
The protected information might include:
- Industrial secrets
- Technical drawings
- Engineering designs
- Formulas
- Sales and marketing data
- Customer data
Confidentiality agreements can protect many other forms of information as well.