Word of the Day: non-disclosure agreement (NDA)

Word of the Day Daily updates on the latest technology terms |April 10, 2017

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. Quote of the Day "Having an NDA in place early in the process protects both parties, and may encourage vendors to share information on future product development plans." - Al Berg   Trending Terms golden handcuffs non-compete agreement intellectual property industrial espionage insider threat sensitive information   Learning Center Data center security concerns with contractors: Advisory Board Q&A Background checks and supervision of outside contractors can help preserve physical data center security. Becoming jaded with Security BSides' Jack Daniel The financial success of the security industry has created 'breach' ambulance chasers. Marcus Ranum chats with Security BSides' cofounder Jack Daniel about a return to grassroots. Business legal advice for solution providers: Managing crises and contracts At ConnectWise IT Nation 2013, attorney Bradley Gross provides business legal advice for solution providers, addressing the most common problems they're likely to run into. With data breach costs soaring, companies should review data sharing policies Companies are sharing intellectual property in increasing numbers, but many organizations fail to monitor and enforce their policies, according to a recent survey. Breaches reignite intellectual property protection Even with DLP controls in place, intellectual property theft remains the elephant in the room for companies, dwarfing revenues lost by PII and other data security incidents. . Writing for Business A security policy should stipulate requirements for each department to _______ that confidential information and technologies are not compromised. a. insure b. ensure Answer       Stay In Touch For feedback about any of our definitions or to suggest a new definition, please contact me at: mrouse@techtarget.com   Visit the Word of the Day Archives and catch up on what you've missed!   FOLLOW US About This E-Newsletter This e-newsletter is published by the TechTarget network. To unsubscribe from Whatis.com, click here. Please note, this will not affect any other subscriptions you have signed up for. TechTarget, Whatis, 275 Grove Street, Newton, MA 02466. Contact: webmaster@techtarget.com Copyright 2016 TechTarget. All rights reserved.