Is it Crucial to Sign NDA for Mobile Apps?

An app idea often includes business strategies, privacy, secret information about clients and lots more. So, it’s not an easy for business to share the idea just to any mobile application development companies. They are highly concerned about protecting their secret information and thus prefer to sign an NDA while working with mobile app developers.

Those of established mobile application development companies always advise clients to read the important clauses of NDA for mobile apps and then sign it, before sharing their app idea. Signing the confidential agreement makes business stress-free and they feel like their app idea is in a safe hand.

NDA for mobile app is the most-heard word. Majority of businesses especially those seeking for mobile app development first time, wish to know more about NDA. This post covering every aspect of the same, is dedicated to them.

Understanding NDA

Being an abbreviated form of Non-Disclosure Agreement, NDA serves its core purpose of preventing the app idea from getting misused or stolen. It’s basically a contractual agreement that makes both parties (signed the agreement) responsible for protecting the confidential information and important data from third-party access, in any situation or circumstances.

Here are some popular terms relating to NDA:

  • Secrecy Agreement (SA)
  • Proprietary Information Agreement (PIA)
  • Confidential Disclosure Agreement (CDA)
  • Confidentiality Agreement (CA)

Types of NDAs

Here are different types of NDAs listed following:

Unilateral NDA

According to unilateral NDA, one party or an individual is bond to not to share the confidential information to the third party. For instance, majority of NDAs generally fall under this category.

Bilateral or Mutual NDA

As the name suggests itself, in mutual agreement, both parties involved sign the contract to never share any confidential information to anyone, no matter what is situation or circumstance. This is the most common type of NDA for mobile apps.

Multilateral NDA

In multilateral NDA, three or more than three parties sign the confidentiality agreement involved into sharing business secret with each other.

Reasons of Signing an NDA

A business has to share their app idea to an app development company when hiring them for the app development. While sharing information to the mobile application development companies, business often wishes to protect their sensitive or confidential data from third-party access. Signing an NDA for mobile apps with the mobile application development companies lets them get a kind of surety that their data will not be misused by the third-party.

Here are other reasons why business signs NDA for mobile apps:

  • If business has a crucial proprietary information that needs a complete protection.
  • If both parties have the confidential proprietary information that they wish to protect.
  • If they want to keep the entire project secret.
  • In case the project requires short-term confidentiality.

When to Sign NDA?

When you are planning to work with a highly established mobile app development company, it’s fair to sign an NDA to protect an important and confidential data of your business. Make sure the NDA is mutual and has not any unfair provision.

When to Avoid Signing an NDA

You should never sign one-sided NDA, where only one party agrees not to share the confidential information. In other words, it’s good idea to sign the mutual NDA that makes the both parties protected as disclosure and recipients of the confidential information. Also avoid signing an NDA without any term limit.

Important Clauses of NDAs

Take a look at certain important clauses of NDA:

  • Important or secret details ought to be protected under the non-disclosure agreement.
  • Timeframe of the agreement is basically the overall period, which NDAs are to be signed.
  • Duties and responsibilities of the party signed NDA for mobile apps.
  • Details of repercussions or consequences, if the agreement is violated or breached.
  • At the end of NDA, the confidential information is generally returned or spoiled by the recipient party.

Disclaimer:

Above blog is intentioned to provide you information regarding NDA. Don’t take it as a legal advice or something like this. Always read the terms and conditions before signing an NDA and then proceed accordingly.

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