confidentiality agreement

Click to go back to the vital information main page: Vital Information: How to patent an idea

What is a confidentiality agreement?

A confidentiality agreement (sometimes called a nondisclosure agreement or NDA) is a legally binding contract entered into by two or more parties to keep information confidential. In the field of inventions, a confidentiality agreement ensures that the party receiving the details of a new idea agrees to keep all details confidential and not do anything with the idea without the prior consent of the inventor.

Confidentiality agreements perform two main functions:

Firstly they protect sensitive information from being disclosed to anyone else. One or more participants in the agreement promise not to disclose the information received from the other party. If the information is disclosed to another individual or company, the injured party has cause to claim a breach of contract and can take the other party to court to seek damages.

Secondly the use of a confidentiality agreement prevents the loss of valuable patent rights. In law the public disclosure of an invention can be deemed as a forfeiture of patent rights surrounding that idea or invention. A confidentiality agreement can prevent valuable patent rights being lost unintentionally.

It is always helpful to have a confidentiality agreement in place when you are talking to anyone about your idea or invention. The only time it is really unnecessary is when you are speaking with a lawyer for the purpose of seeking legal advice. The law already imposes strict confidentiality requirements covering conversations and disclosure between an inventor and a lawyer or patent agent. In fact these requirements are far more stringent than any confidentiality agreement. In all other cases it would be prudent to protect your idea or invention from being copied by others by using a confidentiality agreement.

A confidentiality agreement by be downloaded by clicking here: confidentiality agreement

Alternatively our free patent info pack comes with a confidentiality agreement.

Click to go back to the vital information main page: Vital Information: How to patent an idea

Copyright: Innovate Design - May 08: 'Confidentiality Agreement'