In business or production process, individual or organization being may have to share its business secrets with others. Legal solution for this situation is to enter into a Non-Disclosure Agreement (NDA).
Non-Disclosure
Agreements Lawyer in Vietnam
Non-Disclosure
Agreement (NDA) are often used by inventors or companies when sharing business
ideas, sample products which have just been created, patent and many other
business secrets. This disclosure’s purpose is to explore the possibilities to
cooperate, manufacture; to commercialize a particular product in relation to
another company when seeking licensing contracts, financial source to develop a
product; to deploy a business secret, to enter into a Merger and Acquisition
transactions, or to create binding obligations on employees if they know or are
known secrets of the company they are working for.
What does the content
of the Non-Disclosure Agreement (NDA) include?
NDA should begin with a
clear statement of who the owner’s non-disclosed information is (owner); party
who receives non-disclosed information (recipient); identify non-disclosed
information and the reason for disclosing such information to the recipient.
The most important thing of NDA is to identify the scope of non-disclosed
information or confidential information to avoid the parties in dispute if one
party discloses certain information. Another thing to keep in mind is that the
NDA can achieve the purpose of the parties when stipulating clearly how the
recipient has to protect that information and what is allowed or not allowed to
do with that information. In particular, it is necessary to detail that the
recipient has to take responsibilities if they violate the information security
obligations specified in the NDA.
Besides, the parties
may agree to a reciprocal NDA. Sometimes, the source of information is
two-ways, both parties will then disclose confidential information to each
other, for example when the two parties form a joint venture, or have intention
of acquiring the target company through M&A. Accordingly, NDA will refer to
the agreement of formation a joint venture, M&A which clearly states that
which confidential information two parties will share, what are the rights and obligations
of the two parties.
Of course, the best way
to keep a secret is to not tell anyone. However, this is not always possible in
the collaboration world when shared economy is thriving in Vietnam. If the owner needs to share business secrets,
they could sign with the recipient an non-disclosure agreement or contract to avoid
unfortunate circumstances.
Lawyers at ANT Lawyers
- a law firm in
Vietnam could help clients to create NDA in various
business transactions in M&A, joint venture, IP commercialization, labour
to address the needs of business requirements in Vietnam.
.jpg)
