5 Things to Consider When Drafting an NDA Agreement in Los Angeles
Creating Non-Disclosure Agreements (NDAs) is an important step for any business, particularly ones in Los Angeles2 min read
Creating Non-Disclosure Agreements (NDAs) is an important step for any business, particularly ones in Los Angeles. NDAs protect a business’s intellectual property by preventing another party from sharing confidential information or documents. To ensure these agreements are legally binding and protect your business, it’s important to consult a knowledgeable lawyer. Here are the 5 key things to consider when drafting an NDA in Los Angeles.
1. Make NDAs Fair, Specific, and Thorough
Non-disclosure agreements vary greatly from business to business. But a few core principles should always be maintained. For instance, all sections of an NDA should be fair to both parties. That means the agreement should have a “meet in the middle” quality to it. Generally, it should also be specific in terms of duration, its applications, and any other conditions. Lastly, non-disclosure agreements need to be thorough. Businesses should consider including information about what parties the agreement covers, obligations of both parties, and any exceptions. A quality attorney can help you craft an NDA that clearly outlines these details.
2. Adjust NDAs for Different Parties
It’s important to adjust non-disclosure agreements depending on who the recipient is. Hiring a lawyer means that no details will be missed whatever the situation. If, for example, the recipient is a former employee, an NDA needs to address their continuing obligations to the business. On the other hand, if it’s being offered to a new business partner, the agreement should be worded differently to avoid potential conflicts.
3. Ensure NDAs Comply with California Law
NDA agreements must also comply with state and federal laws. There are numerous aspects to consider. For instance, California law generally prohibits businesses from compelling workers to sign NDAs. The state also controls when and how NDAs should be used and how medical information can be shared. It's crucial to ensure a business’s NDAs are in line with these regulations.
4. Pay Attention to Confidentiality Types
Not all confidential information is created equal. For instance, trade secrets are protected under state and federal law, while customer information may be protected under personal data laws. NDAs should address the different types of confidential information a company needs to protect, detailing what is and is not covered.
5. Seek Professional Legal Help
When a business creates an NDA, they need to ensure the three C’s are present; certainty, clarity, and completeness. Without professional legal help, these goals can be difficult to meet. With the help of an experienced lawyer, businesses in Los Angeles can rest assured that their NDAs provide the protections they need.
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