Many tech companies in Connecticut go the route of nondisclosure agreements to protect their intellectual property. If you depend on confidentiality to maintain the profitability of your company, you may also be deliberating how to best use an NDA. At Raymond Law Group, we often recommend these and other proactive measures to our clients.

According to Tech Crunch, sharing confidential information is often a necessary part of doing business in the tech world. When you are developing your NDA, consider adding these provisions.

Confidentiality clause

Working with another company to turn an idea and prototype into a product puts your IP at risk without the proper contract language. For example, the NDA could state that the party who discloses the IP and other confidential information retains ownership of it. However, this opens the possibility of an ownership claim by the other party if it preemptively discloses the information.

You may be able to protect your IP by limiting the type of confidential information that can be disclosed or requesting that each party designate an individual to screen information disclosed by the other party. Alternately, you may want to change the language of the ownership provision so that disclosure does not affect ownership.

Residuals clause

It may seem advantageous to include a residuals clause in your NDA. This clause allows parties to use general information that they learned while they worked together. The particular risk of this clause is the vagueness regarding what is general. You may want to leave the clause out altogether or limit the information to what either party retains in unaided memory.

More information about preventing IP disputes is available on our webpage.