NDAs - worth the bother?

[DaveJH]

Are Non-disclosure agreements worth the bother of writing and getting signed?
It would be so hard to prove that someone stole the info you gave them, and I suspect so expensive too, that I am beginning to think that they're not worth the effort.
Maybe they are just to test people to see if they are willing to say they'll agree to not use the info?

 

[Luolou]

When we have to sign an NDA it is usually when doing certain specialist works for major events etc.to ensure that we don't spoil any element of surprise prior to an event.
We once got our knuckles rapped when a local newspaper interviewed us & we showed them an effect we were developing for an upcoming music Tour. From our local rag it got picked up by The Sun and splashed alll over the showbiz pages. The band's production team were not happy...and we were lucky not to lose the job. Lesson learned.

 

[webgeek]

There's a number of mid-sized businesses and government agencies who require them.

You may not require them from your end, but others do from theirs.

What about non-compete / non-solicitation agreements?

 

[NickGrogan]

They're worth exactly what you're prepared to send enforcing them.

So if you're working with a large company then they'll typically require one and enforce it.

For smaller companies and one man bands, they're less relevant.

 

[Gecko001]

I think that NDA's often act as warnings rather than something that will be enforced even if it is broken. Most business negotiations and discussions are considered confidential by default, but some people, whether it is because they are new to business or just through lack of knowledge of the business environment, often just do not know what they can and cannot talk about among their friends and acquaintances or other businesses in connection with their business dealings.

BTW if you sign a NDA, break it at your peril as you cannot tell who and who does not have the will or the financial resources to enforce it.

 

[Alan]

And NDA from small company to me is normally a sign to steer clear as they as it normally means they have an over inflated opinion of their 'idea', often evident in badly drafted one sided NDAs, e.g. where the nature of the project isn't even defined and the agreement lasts for infinity.

I have no problem signing big company NDAs as they are normally well drafted and just have to be signed to get on with the job.

Although I have worked with corporate lawyers many times when I'm on the inside of the technology component of major acquisitions, and they say to me not to worry about NDAs as they are effectively unenforceable as measuring the damage in absolute objective terms is close to impossible.

So my opinion, is like anything, when you sign a piece of paper you stop and think.

 

[Alan]

BTW if you sign a NDA, break it at your peril as you cannot tell who and who does not have the will or the financial resources to enforce it.

I would also say, if you are given information in confidence, without an NDA, break that confidence at your peril. Not signing an NDA doesn't mean you don't have a duty of confidentiality and these duties may be written into service agreements etc not just a specific NDA.

 

[Jim2k]

I would also say, if you are given information in confidence, without an NDA, break that confidence at your peril. Not signing an NDA doesn't mean you don't have a duty of confidentiality and these duties may be written into service agreements etc not just a specific NDA.

Agree with this. Just because there is no NDA doesn't mean confidence should be broken - it's all about respect and honour. Like anything a NDA is only as good as the follow up action.

 

[Gecko001]

I would also say, if you are given information in confidence, without an NDA, break that confidence at your peril. Not signing an NDA doesn't mean you don't have a duty of confidentiality and these duties may be written into service agreements etc not just a specific NDA.

Usually the punishment for breaking confidentiality is that you will lose a lot of business. You will not only lose business from the client/customer as they will never hire you again, but also you will lose business from potential clients/customers as word can get around. Also you could even lose work from potential clients/customers you share the confidential information with. I stopped working with one lawyer as he told me confidential information about other clients. My thoughts were to wonder what information is he sharing with other clients about me.

 

[mhall]

And NDA from small company to me is normally a sign to steer clear as they as it normally means they have an over inflated opinion of their 'idea', .

Couldn't agree more, one chap came to me for advice but insisted I sign an NDA. I refused on the grounds that I found it insulting to not be trusted and it wasn't a great way to start a relationship.

There followed a long silence...

He finally admitted that someone in the pub had told him to do it so I wouldn't pinch his brilliant idea and he hadn't even read it himself.

As it happened, it wasn't a brilliant, or even novel idea and he realised I could help him best by talking to others about him.

 

[Gecko001]

Couldn't agree more, one chap came to me for advice but insisted I sign an NDA. I refused on the grounds that I found it insulting to not be trusted and it wasn't a great way to start a relationship.

There followed a long silence...

He finally admitted that someone in the pub had told him to do it so I wouldn't pinch his brilliant idea and he hadn't even read it himself.

As it happened, it wasn't a brilliant, or even novel idea and he realised I could help him best by talking to others about him.

I found this great. There should a thread here about things that people in pubs say about how to run a business.

 

[mhall]

I found this great. There should a thread here about things that people in pubs say about how to run a business.

Its not just pubs, the amount of people I get in the shops telling us what we should or shouldn't sell, what we should or shouldn't do and generally how to run the business is amazing. Every November I get one woman in who asks me every year if we sell serviettes. Every year she is informed that we don't and every year I get a lecture about how much money we would make if we did sell serviettes as she can never find them. She then scurries off, not to be seen for twelve month.

 

[columbo]

An NDA is'nt worth the paper its written on.

But corporate types and civil servants love them. And if they are the paymaster - give them an NDA. Keep them happy.

 

[DaveJH]

I'm considering sending one. We've been given loads over the years that I could use as a template. I guess anyone not willing to sign one would be a red flag, but, on the other hand, I know that I would do nothing more than a stern solicitor's letter if they broke the terms of the NDA (because I could not afford to enforce it in court).
TBH, 9 times out of 10 when I've received one to sign, I've ended up wondering why they bothered as what they tell me isn't interesting or useful.

 

[Thermodynamic Man]

A guy ( from down the pub as it happens) got an NDA signed by a rather large company down here as he was worried they would pinch his idea. They signed it and a month later his idea was launched under their own name. It has cost him several thousand to try to fight this but they have millions and his solicitor has told him to forget it as they would just keep throwing money at it until he was bankrupt if he he kept fighting it. Even if he thought he had a chance he has been told that they could tie him up for years before this got settled. If anyone wants I coud write and NDA on some toilet paper for you. That's about what they are worth

 

[mhall]

A guy ( from down the pub as it happens) got an NDA signed by a rather large company down here as he was worried they would pinch his idea. They signed it and a month later his idea was launched under their own name. It has cost him several thousand to try to fight this but they have millions and his solicitor has told him to forget it as they would just keep throwing money at it until he was bankrupt if he he kept fighting it. Even if he thought he had a chance he has been told that they could tie him up for years before this got settled. If anyone wants I coud write and NDA on some toilet paper for you. That's about what they are worth

There are plenty of no win no fee solicitors who would take this on. Start in Manchester as that seems to be where they all are.

 

[Thermodynamic Man]

Damage has been done now as it was some months ago. To be honest it really drained him and i doubt he would even bother again. But thanks anyway