In recent days, intellectual property is regarded as the most important thing of any company. So, it becomes necessary to safeguard it from other parties to prevent theft of ideas and protecting your own intellectual right in the process.
Currently, there are numerous mobile apps available in the market with peoplecoming with out of the box revolutionary ideas that have the potential to be the next big thing. Here lies the importance of NDA. Let’s assume that you have revolutionary app idea. But you are too afraid to share it with anybody.
To create a mobile app, you generally require a developer or a team of dedicated and professional developers who will understand the app idea or yours and will turn the idea into a reality.
But, while hiring a mobile app development firm or company it becomes vital to safeguard our app idea and other important ideas and blueprints from an unknown person.
So, to keep your idea safe and prevent it from theft, making non-disclosure agreement is highly recommended. Below we will discuss the importance of NDA for app development.
What is NDA
Full form of NDA is non-disclosure agreement which is primarily a contractual agreement between the parties that states that both the parties will work harmoniously to protect the secrecy of the idea and under no circumstances; they will disclose the idea to any third party.
Though NDA often proves to be not enough, in most cases, it plays a vital role in protecting a person’s idea.
What is the need to safeguard youridea
While hiring an app development agency, most companies demand to make a non-disclosure agreement because they are about to share some important and very sensitive information including trade secrets and ideas with the development agency which if gets shared may have serious consequences on the business.
So, in order to safeguard important information or prevent your app idea from being stolen by intruders you can demand the mobile app development company to sign an NDA.
Ideal time to sign an NDA
Generally you can opt for the NDA before entering into the business deal with any app developer (freelancer or a company) and can also be demanded while discussing the details of the business including trade secrets.
Is there any need to sign an NDA while talking to the potential investors?
While talking to potential investors for your business, it is not necessary to demand the parties to sign anNDA, as it is out-dated these days and is only needed when you are sharing in details about your technology which is rare while talking to the investors.
Important clauses that you should consider putting while framing an NDA
NDA is a kind of legal a document which will be signed by both the parties and that’s why proper care should be taken while framing a proper non-disclosure agreement.
Proper mention of the timeline
While creating a valid NDA, a proper mention of the time period should be made which means the specific period for which the NDA should be maintained. or in simple language, the duration to keep hold of the confidentiality of the information.
It is not advisable to frame an NDA which compels a party to hold onto the information for an indefinite period of time.
Duties and Obligation of the parties clause
This clause in an NDA clearly tells about the duties and responsibilities of both the parties towards the maintaining of the NDA.
Clause mentioning what secret ideas to be protected
This clause is very important in an NDA as it mentions the particular idea or ideas including trade secrets that should be protected under the NDA.
Consequences in case the NDA is breached
This is essential part of an NDA. Generally, heavy financial penalties are demanded in case of any breach and sometimes getting indemnities from the losses incurred by the breach can also be mentioned.
Right to injunction clause in an NDA
This clause mentions the right to seek an injunction in case of the breach so that a party can approach the court for a stay order on the injunction.
Return of The Information clause.
This comes at the very last of the NDA stating that the sensitive information needs to be destroyed or returned by the recipient and in modern days due to technological advancements, you can include legal terms barring the party to share information in the near future.
Thus, we can see in recent days, the importance of an NDA for App development is on the rise.