Non-disclosure agreement: don't stress over how to secure your app idea

Non-disclosure agreement: don't stress over how to secure your app idea

Are you tired of facing leaks of your product or services or mobile apps? Protection of a personal asset is the most important security measure, mainly in the case of development of software. It is basically an idea of the application in the initial stage.

Before any implementation, it is the app idea which is the starting point to success, but it can result in a huge disappointment.

You must have heard several times that if a company is launching a new product or service and the competitor also launches the same material at the same time (or maybe before), this will result in a huge loss for the first company and a loss of the company’s effort.

The possibility of such situation can be an inside leak that might happen during the state of development of the app or software. Every big and renowned company has its secret formula, no matter what product it produces. Keeping your app formula secret can lead to company success and it also makes the commodities original and unique. A mobile app development company’s formula is considered as a normal app idea.

If you are looking forward to work on your new app idea, then make sure to keep the idea secret and secure via a non-disclosure agreement (NDA).

NON-DISCLOSURE AGREEMENT

A non-disclosure agreement is done between two parties (the app ideator and the app developer, for example) and this NDA protects the private information. Sometimes, an NDA might sound useless especially to those who just have an app idea in their mind but often don’t have any implementation plan, framework, or design.

People usually think that applying the NDA service will not let anyone steal their idea. This isn’t true, but the NDA provides safety for the two parties for using or revealing their private information. For example, there is no such business of selling milk online, so if I get my idea of selling milk patent, then until I start my business, no one else will be able to start a business on the same idea.

Well, getting your app idea patent is more costly, so most prefer to not do that. Most people don’t patent their ideas. Basically in the contract of an NDA, if a company approaches a mobile app developer to make a similar app, this is possible but they cannot use the confidential information (this includes design or framework).

HOW TO PROTECT AN APP IDEA

If you are looking forward to protect your intellectual property for your Android or IOS mobile app development idea, then the NDA is used. Usually, the non-disclosure agreement is a legal document that confines the area of information about the project or created items by the people who have signed the agreement. Once parties have signed this agreement, they cannot leak any information related to the development of anything, Information can only be shared between the two parties who have signed the agreement.

An NDA is considered as the best protocol to secure your private property if you use it in a proper way. The NDA even affects your business in its progress, because it is limited to few people only, other cannot explore your products. For example, if you want some services to be given to you by any top-notch mobile app development company, then they will not steal your app idea rather they have more important thing to protect like their reputation.

The correct time to sign an NDA is when you have a mutual understanding with the other side people regarding mobile app development, or if you are associated with any famous company then there is not much doubt in signing an NDA. The only thing you need to pay attention to is that there are no unfair provisions in the terms and conditions.

GO FOR AN NDA WHILE ENTERING INTO A BUSINESS DEAL

If you are looking forward to hiring a mobile app developer or a company for any app or software business deal, make sure the app idea you are providing them doesn’t leak anywhere else, sign the NDA with the company you are associating with.

Let me throw you an example, If you have an idea in your mind regarding an app and you are seeking a company providing Android app development services, and you even have to share your idea you came up with and you don’t want them to share it with any other competitor or rival, then without hesitation,sign an non-disclosure agreement.

Now if you are looking forward to sign an NDA while talking to an investor, then that’s an old tradition. It is not done anymore. Now the investor will directly refuse to sign the NDA during the initial discussion. But if the investor is going through information like revenue number, design or any technology, then make sure to sign an NDA.

TERMS AND CONDITION OF AN NDA

  • Duration of an NDA: In layman language, it is basically the duration of time for which the owner of the information is expected to keep the secrecy of that particular information. The duration starts from the day the NDA is signed till it gets expired due to completion of time. Not having limitation is a bad idea, it is not correct that one has to hold the information infinitely.
  • Information that needs to be protected: In this clause, it is mentioned the information that should be kept secret and secure.
  • Duties and obligations of the parties of the NDA: The major thing that NDA states is the responsibilities and obligations of the parties. That means, any mobile app development company can only use some sort of mechanism for communication or may use a cliché technology to develop an app.
  • Punishment if confidentiality is breached: Discuss the punishment if the secret is revealed by the recipient, this is an essential clause of an NDA. If it happens, then the recipient has to go through financial penalties under the NDA clause, but if the recipient gives the compensation, then it is usually sufficient.
  • Right to seek demand in an NDA: It is stated in most of NDA contracts that monetary compensation cannot reimburse all the losses and the parties have to agree to it in the contract. This must be definitely done by the party who caught the breach and go to court and get a stay smoothly.
  • Giving back the information in an NDA: Well, during the expiration of the agreement, the secret information needs to return. However, it is not possible to destroy all the information shared via email, Dropbox, etc, but the clause of the NDA can tell the recipient to destroy and return all the received and sent information. If they are not able to destroy the whole information, then the clause can add legal terms that will lead the recipient not to share the information in the future.

CONCLUSION

An intellectual property is essential for any company. Any company or app ideator having intellectual property does everything to protect it from getting leaked. So, the best way to protect your app property is to sign a non-disclosure agreement.

For example, you have an app idea in your mind and you don’t want it to get leaked. You want to share it with the mobile app development company you are dealing with, then NDA makes your idea secure and informs the recipient party not to disclose the idea or information to the competitors or anyone.

You can also avoid sharing the whole idea before signing the NDA, it would be the best way to protect your idea during the mobile app development. If you don’t have a signed NDA of all the secret information, then it is best to contact a lawyer on how to save your app idea.

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About the author
Vipra Business Consulting Services, Inc.
Vipra Business Consulting Services, Inc.
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With offices in the US, UK, UAE, Saudi Arabia, Kuwait and India, Vipra Business offers mobile app development services worldwide. Vipra's team works with enthusiasm and commitment for projects like web apps, mobile apps, digital marketing and business analysis.

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