Non-Disclosure Agreements (NDAs): How to Protect Your Confidential Information

Does your business need a NDA? You need to work with many people to meet demanding business needs. You might rely on numerous people, from employees to consultants and even agencies, to keep your business running – and thriving. While this might help you get work done and grow your business, it can also put your company at risk.

If you give too many people access to your confidential information, you risk having them take your confidential ideas, data, and other trade secrets.

You can prevent this by using a non-disclosure agreement (NDA).

What Is an NDA?

An NDA is a legal agreement that establishes confidentiality. It should document what information is confidential and how it should be handled to ensure the data is protected. These agreements are standard for all vendors, partners, agencies, consultants, and even employees.

What’s Included in an NDA?

You should customize your non-disclosure agreements to cover your business needs and information. Some general information you should include in the NDA are:

  • A clear definition of what information is confidential. This can include customer information, financial data, marketing and advertising strategies, product information, ideas, trade secrets, and other vital data.
  • Detailed descriptions of how the party should use the confidential information. This can include any restrictions and steps that must be taken to keep the information secure.
  • A timeline for how long the confidential agreement applies.
  • There may be exceptions to the NDA. An example is if there is any information that is already publicly known.
  • The consequences for a violation of the NDA.

Why Do You Need an NDA?

If you’re not sure if you need an NDA, you might want to reconsider. While you want to think you can trust everyone you work with, the reality is that someone can easily take your confidential information if you don’t put safeguards in place.

Because NDAs are so common, vendors and partners will likely not be offended by the need to sign one. They understand it’s a common practice and a necessity to protect your company.

NDAs are essential to helping you protect new ideas, keep your intellectual property safe, and prevent others from using them. They also allow you to work more closely with agencies and other partners. With an NDA in place, you can speak more freely about your business. They also help you reduce the risk of lawsuits if confidential information is misused.

When You Should Use an NDA

There are many situations in which having an NDA in place makes sense. In general, you should use an NDA anytime you share sensitive or confidential information. This can include:

  • Discussions when you’re sharing new product ideas or business plans.
  • When sharing confidential company information with new employees or new partners.
  • When signing a freelancer or contractor to help with a project.
  • When negotiating a merger and acquisition.

There are also other situations where you might need protection. It’s essential to work with an attorney to determine when you should have someone sign an NDA.

Why Hire Us 

Protect your business and confidential information with a non-disclosure agreement (NDA). Hire our business attorneys at Johnstone Adams LLC to help you create and review NDAs. We’ll ensure your vital information is protected and give you peace of mind when working with vendors.

Ranked in the 2023 U.S. News – Best Lawyers® “Best Law Firms” list regionally in 12 practice areas, we have experts in many areas of law to give our clients top-notch representation. In business for more than a century, our firm can mix its experience with the ability to evolve with the changing times.

To get started, contact us at 251-319-4659 or

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