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Why you shouldn't start any software development project without signing NDA

CNBNews Staff Screen Shot 2017-09-24 at 15.15.29

(CNBNewsnet)(April 21, 2018)Here we are, in a modern age. There is so much of information and so little of the valuable data. Every person and company has its own secrets and details to keep unrevealed, including urgent agreements, clients lists, confidential personal data, and much more. That's why NDA (non-disclosure agreement) was created - to keep parties of the deal safe and take care of the essential info. Does NDA always work in order to protect the company's rights? And what should you do to keep your company secure when starting to work on software development project? Let's discuss.

How NDA was designed to be completely secure...and how it is not

According to Wikipedia, NDA is a legal document that represents agreement signed by at least two parties and includes information that should remain private after signing the contract. It is designed to be helpful for companies and keep information between the sides of the deal secure and confidential. Unfortunately, there are some companies and individuals that break the rules and usually it is a big deal on media and in news. Info leak cases are commonly known even in huge structured companies, so the situation is even worse with small firms and startups. Even Apple has problems with confidentiality.

What should your NDA contain (and how to make it secure)


- Who are the parties

- What confidential information is the subject of an agreement

- What does confidentiality mean

- What information is not considered confidential

- Terms of agreement


Be sure to consult with your lawyer before signing an NDA, they might help you find out the weak sides of the contract and advice how to advance them. Your attorney has to be the first person to proofread and edit the contact.


What data should you protect if you work on software development project


So what is NDA really all about? Of course, there is no one-size-fits-most document that would cover everyone's needs. Usually, the most important information in software development projects is financial: what is the budget and development rates. Estimated time and dates, designs, instruments and tools, even the names might be a subject of confidential agreement as well.


For data loss prevention, there are a lot of details to be covered in the contract. The source code should be completely secure with no right to reuse it elsewhere or use, store outside of the project, so put that down on your list of confidential information. You should always think about protecting your rights (so be clear when defining the rights of the parties and to do not transfer them). Make sure you do not do mistakes that will invalidate your NDA. Wisely define what information is only to be used in this particular project and isn't allowed to keep, copy, store, reuse, expose, or even be mentioned elsewhere. If the other party is going to have anyone else (including employees, consultants, and anyone else to be engaged in this project) make sure to include a list of people who will have access to this info. And always keep your attorney informed about the new contracts and agreements.  

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