Pitfalls To Avoid When Drafting And Enforcing NDAs

Law360 (June 4, 2021, 1:35 PM EDT) -- Although seemingly commonplace, nondisclosure agreements have been subject to increasing litigation in recent years.

Businesses often default to using boilerplate NDAs without careful consideration of the specific business purpose or the transaction risk at hand, which can lead to challenges in court and detrimental outcomes, including loss of protection for valuable information or undue restrictions on the recipient's ability to pursue business interests.

The majority of litigation has centered around technology, where there is considerable value in protecting ideas and innovations.

While an NDA is meant to protect valuable or sensitive information from unauthorized disclosure or use, parties to an NDA...

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