When you run a business, there are bound to be situations in which you are faced with the need to disclose confidential information to other parties in order to further your business interests and keep your organization moving forward. How can you do this while simultaneously making sure that your private information does not get into the wrong hands or is not in some way used against you?
Forbes explains that these situations are when non-disclosure agreements may be your best allies. These contracts, also called confidentiality agreements, let you outline who is allowed to know what about your company and what can or cannot be done with that knowledge. There are many people with whom you may need to enter into these agreements including your own employees. Potential or current franchisees, partners, investors, licensees and buyers all have reason to see confidential information as well. The same is true for someone interested in purchasing your business. Venture capitalists are one group of people who are generally not willing to sign NDAs so anyone seeking this form of capital should proceed with caution as sensitive data may not be fully protected.
The type of information you can protect with a non-disclosure agreement runs the gamut and includes financial data, marketing and sales plans, new business concepts and plans or inventions for new services, technologies or products.
If you would like to learn more about sharing necessary information while protecting your business interests, please feel free to visit the confidentiality agreement page of our Ohio business and civil litigation website.