Your company have spent months coming up with a cutting-edge design for a product that solves an important problem. You want to manufacture the part but know that if it fell into the hands of your competitor, your design could easily be ripped off. Enter… the Non-Disclosure Agreement!

As a business that deals with new inventions, innovative products, and cutting-edge applications, BEC Group’s plastic injection moulding clients often wish to engage in NDAs with us.

Read on to find out what an NDA is, why it’s used and whether you might benefit from having one (we’re moulders, not lawyers, so do seek independent legal advice if you think an NDA is appropriate for your business!).

What is an NDA?

An NDA, confidentiality agreement, or non-disclosure agreement is a legally binding contract between two or more parties that protects confidential information from being disclosed to other people or parties outside of the agreement.

In the world of plastic injection mouldings, NDAs are used to prevent designs, applications, or trade secrets from being leaked to third parties.

An NDA isn’t the same as a patent, a trademark or intellectual property. However, an NDA can be used to help protect your intellectual property.

What is included in an NDA?

Non-disclosure agreements vary from case to case. Typically, they state the two (or more) parties involved in the agreement and define what confidential information cannot be disclosed (for instance product designs, intellectual property, market strategy) etc. The agreement also states the consequences for leaking any of this specified information. A time period for the NDA to be enforced for is often included- this may be months, years, or indefinitely from when the NDA is signed. There is much more specific information included within an NDA, but this forms the main basis of the contract.

Should I use an NDA?

It’s up to you whether you think an NDA is necessary for your project. Many businesses find NDAs to be a clear way to keep sensitive information private with a manufacturer or business partner. It allows for clear consequences for information leakage and is a relatively low-cost measure to implement.

On the other hand, businesses unused to NDAs may feel it creates an atmosphere of distrust with a new business partner. Additionally, they can be difficult and costly to enforce.

If you decide you do require an NDA, a solicitor or IP attorney will draw up an agreement based on your precise requirements.

If you would like to know more about using an NDA with us or need help with a project from our experienced team, get in touch.  Either call 01425 613131 or email.  We’re happy to help!