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FAQs content26 non disclosure
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What are good form agreements for Non-Disclosure Agreement, Master Services Agreement, and Statement of Work to use with an outside developer you hire?
I would strongly recommend using a good lawyer to form a concrete NDA. However, i must say from my experience that in India, these NDAs hold no value. I am a co-founder of a Mumbai based startup and i had hired a software developer to develop a few applications for my firm. After having signed a NDA, we disclosed information that was vital to my business and the vision. While this software developer was working on creating my product, he himself floated his own competing firm doing exactly the same business i am into. This SaaS provider used all information that i had revealed to use against me and is still doing so as it competes head on with me in this market by undercutting commission (since he know my commission structure to clients) and poaching employees. I visited many laywers in Mumbai and each one of them said that in India, a person has constitutional right to start any business and it cant stop this software company from getting into a competing business even though we have all evidence on how they moved from a software dev company to a service industry just by getting lured in the potential of our idea and vision - because these things cant be protected not even a NDA. There are obviously lot more details to this case but point being - access this developer very well before you outsource this work. Unfortunately, the fellow who cheated us is an ex-IIT IIM and has no morals or ethics who stopped my work midway started his own competing brand and doesnt care to reply to any legal or professional notices!
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How do non-disclosure agreements work with ideas that turn out not to be unique?
An NDA doesn't provide any "protection" against someone else using your idea regardless of its uniqueness. It's simply an agreement not to share your information with any other party.In other words the NDA doesn't protect your idea. It simply puts the other party on notice that you expect that they will keep any information shared between the disclosing parties.For example, Company A owns Company B and Company A is interested in acquiring Company C which is a direct competitor with Company B.Obviously Company C doesn't want any information whatsoever shared with their competitor.If information is shared then Company C has legal recourse because there was a clear understanding in place. Most NDAs are mutual (two way). Neither party should disclose information outside the signing parties.All in all, for the most part, don't get to wound up about trying to "protect information". Of course, take the proper legal steps to safeguard company proprietary and especially Trade Secret information. That type of information should only be accessible at a high level and on a need to know basis.Most companies place identifiable "bread crumbs" in products and software so that forensically it can be traced back to its origin.An example of this is Google maps. They have fictitious streets, etc and other markers inside their maps so that if you copy their maps, you will copy the marker as well. Then you're busted.People don't talk too much about these hidden forensic identifiers, for obvious reasons, but trust me…they're there.If your idea is not unique no paperwork, agreement or patent APPLICATION is going to help. Besides great ideas don't go anywhere. Great BUSINESSES do!
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How should web developers deal with startup founders who ask you to sign a non-disclosure agreement?
A non-disclosure agreement is relatively common in certain commercial sectors, and I would definitely expect one for a startup or R&D jobs.Generally speaking, I wouldn't be worried about signing an NDA.BUT.You should clarify how your legal obligations interact with open-source code you will probably be using off GitHub.First of all, you should clarify if you'll be allowed to post anything on GitHub. The answer will probably be no. That's fine, but you need to understand that that may impact future job prospects, as your GitHub repo is something of a de facto CV. But the potential payoff of working for a successful startup is probably worth it.Secondly, if you use GitHub libraries, you need to be very careful about licensing. "Contagious" open-source licenses like GPL, which mandate that any library/application that uses it, must also be GPL. So you'll need to avoid those libraries when developing your application.Hope that helps!
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How common is it to sign a non-disclosure and non-compete agreement for a job?
When I was working for a startup, NDA for interviewing candidates where a must. In California you can’t sign a non-compete.
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Should the founder ask every person or organization to sign for NDA(Non Disclosure Agreement) form before showing business plan?Why or Why not?
Everyone in Dallas seems to be building a mobile application and lots of these people call or email me to share their ideas with me. More than a few of these entrepreneurs ask me to sign an NDA before they are willing to ask for my feedback and/or advice. The quick answer is that I don’t want to sign your NDA. Feel free to solicit free advice from me, but please quit asking me to sign a contract.Anil Dash wrote a pretty good post titled, “One more time: No NDAs“. Anil points out that a lot of people feel the same way. His reasons were pretty good and worth repeating:When you ask me to sign your NDA, you’re basically saying, in writing, that you don’t trust me. It’s your prerogative to say that, but it’s a pretty lousy context in which to ask for a favor.I have to pay a lawyer to review a document without having any idea why I’m making that investment. No, I won’t “just sign it” without having a lawyer look it over, because it’s a legally binding document whether a lawyer reads it or not.If your idea’s that good, it’s probably not that rare. I hate to be the one to point it out, but protecting your idea in general is a fool’s errand — good execution is hard to find, but good ideas are cheap.I could get screwed through no fault of my own if some other random person walks up to me and blurts out the same idea that you’ve had. Being exposed to the risk of a lawsuit even if I haven’t done anything wrong sucks.If I couldn’t be trusted with your idea, you’d already know about it. There are folks who don’t like me, or who are annoyed by me, but if I’d broken somebody’s trust in regard to their work, I guarantee it’d be just about the first thing you’d find when you Google my name.The biggest value I can probably offer you is that I would talk about what you’re working on. If I honor your NDA, and I meet a great investor or potential employee or valuable partner for your new venture, I wouldn’t be able to tell them about it.
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How do I get someone overseas to sign a non-disclosure agreement?
The enforcement of E-signature laws, have made e-signatures as legally binding as wet-ink signatures. Therefore, if you are looking to sign an NDA with a user located overseas, the best way to go about it is to leverage e-signatures.The only condition is that it should caters to the attributes mentioned under e-signature regulations that apply to the geographical jurisdiction of your business.For example, two of the e-signature regulations that apply to U.S - ESIGN Act and UETA - state that:(i) A record or signature may not be denied legal effect or enforceability solely because it is in electronic form.(ii) A contract may not be denied legal effect enforceability solely because an electronic record was used in its formation(iii) If a law requires a record to be in writing , an electronic record satisfies the law(iv) If a law requires a signature, an e-signatures satisfies the law.One thing to note here is that, the UETA in particular states that it covers documents used in “transactions between parties” - which includes NDAs.
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How should I get an investor ready to sign an Non Disclosure Agreement?
In the USA if you disclose a patentable idea to someone without a legal requirement that they keep it secret, you have just disclosed your idea publicly. After public disclosure you have 12 months to file a provisional or full patent application. The conversation with an investor is very simple. "I can tell you what we can accomplish. Patent law prevents me from telling you how we make that happen without an NDA."For a made up example: "We have a technology that turns wood into industrial diamonds at a tenth the cost of current industrial diamonds. Until we file for patent protection, I cannot discuss how we do this without an NDA."
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When and how should an NDA (non disclosure agreement) be used when shopping for talent to build an idea into a business?
It's kind of pointless. No one with options and skills is going to waste any signNow amount of time listening to ideas under an NDA. Asking "talent" to sign an NDA for a random idea is a mark of not understanding how startups work. Just hire someone off ODesk or Rentacoder with a decent portfolio and see if a working prototype gets some interest.
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What is the difference between a letter of agreement and a memorandum of understanding?
A memorandum of understanding is an agreement between two or more parties outlining the terms and details of an understanding, The primary difference between the two is that a letter of intent is not binding, whereas a memorandum of understanding is considered binding and carries weight in a court of law.
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What is a Letter of Understanding and Agreement?
A Memorandum of Understanding (You), or a Letter of Understanding (Lou) contract, explains an agreement made between two or more parties. It outlines the understanding all sides have regarding a specific situation.
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What is a letter of agreement?
A letter of agreement is a letter used to outline conditions. It may be used for employment conditions between an employer and new employee. It could also be used for an independent contractor who is providing a company with various services. A letter of agreement outlines expectations and protects both parties.
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What is the purpose of a letter of understanding?
The main purpose of a letter of intent (sometimes also referred to as a \u201cLetter of Understanding\u201d or \u201cMemorandum of Understanding\u201d) is to facilitate the start of a business dEval or project between the parties involved by identifying the key business and contractual understandings that will form the basis of the final ...
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