Is it Crucial to Sign NDA for Mobile App Development?

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This blog post gives an overview and importance of NDA for mobile app development. The content details on the types of NDA, reasons, why, when and important clauses for signing an NDA.

An app idea is most important. It often includes innovative product concept, business strategies and lot more. So, it’s not easy for a business to share their idea with any other organization without any safety assurance. Businesses must be concerned about protecting their product information and should prefer to sign an NDA while working with mobile app developers.

Established mobile application development companies with transparent processes always advise clients to read the important clauses of NDA for mobile apps development, and sign it before sharing their app idea. Signing the confidentiality agreement gives assurance that the app development agency will not misuse client’s concept.

Understanding NDA for Mobile App Development

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)

Major Types of NDAs for Mobile Apps

NDAs can be custom made and amended for specific requirements of the organizations. But they can majorly be categorized into below types:

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 development work. 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 development companies lets them get a kind of surety that their data will not be misused by the third-party.

Here are some 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?

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

When to Avoid Signing an NDA

As a client, 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 both the 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 some of the important clauses of NDA:

  • Important or secret details ought to be protected under the non-disclosure agreement.
  • Time-frame of the agreement should be defined to a minimum of 2 to 3 years.
  • Duties and responsibilities of the agency signing 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:

This post gives basic knowledge on type, importance, etc., regarding NDA. Don’t take it as a legal advice. Always read the terms and conditions before signing any NDA and then proceed accordingly.

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