Are NDAs useful?

Question

NDAs seem to be ubiquitous In the startup world (and I guess it is the same in any IT/High Tech Business environment). I have heard that they are not efficient in protecting your technology though, as they are hard to enforce and therefore not really relevant. Is this correct? If so, what is the advantage of using an NDA with my business partners?

Answers: 1 public & 1 private

Lawrence lau
IP Broker

Partly psychological ... if they see a document marked confidential, they should mentally zip their mouths, partly to establish the right relationship. Some subcontractors attempt to bypass you to steal the customer. With NDA and trade secrets, the presumption in courts is that there is economic benefit so getting an injunction is a little easier than patent litigation where you have to prove infringement. Relevance is as much as parties put into their word ... it basically comes down to the minimum level of trust you expect in a professional setting ... and btw, word gets out in a small business circle if blatent in breaking law

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