On the other hand, a reciprocal confidentiality agreement is usually implemented between companies participating in a joint venture that exchanges proprietary information. If a chip maker knows that top secret technology is entering a new phone, it may keep the design a secret. In the same agreement, the phone manufacturer may be forced to keep the new technology secret in the chip. A confidentiality agreement can be adapted to provide the specific type of protection needed. At Coodin-Overson, PLLP, we work with our clients to understand their needs, and then adapt a confidentiality agreement accordingly. An NDA can provide real security because you know that your confidential information is secure, as well as your business relationship. Since everyone knows what confidential information is protected and what the consequences of a breach of contract are, it is possible to avoid any misunderstanding that might otherwise quickly end a business relationship. To gain a competitive advantage, companies must continue to keep projects, innovative ideas or exciting new products secret so that they do not fall into the hands of a competitor. Similarly, start-ups can only succeed with a new and profitable idea if what they are working on remains under lock and key. A Confidentiality Agreement (NDA) is a legal document that keeps the lid on such sensitive information. These agreements can be considered confidentiality agreements (CA), confidentiality statements or confidentiality clauses in a broader legal document. A confidentiality agreement – sometimes called a confidentiality agreement, confidentiality agreement or proprietary information agreement – can be used between an entity and an individual, between individuals or business entities.
In some cases, such as joint ventures, three or more parties may be involved. If only one party discloses such information, a unilateral confidentiality agreement is used. When both parties share private information, they use a reciprocal confidentiality agreement.