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| | | If you have important design, technical or other business information you need to share with someone but you don't want that person to pass it along to anyone else, you can have them sign a nondisclosure agreement, which is also called a confidentiality agreement. These legally binding contracts are intended to protect a company's trade secrets. | | |
| Typical costs: | - It's relatively easy to create a document yourself. Companies such as LawDepot.com and Nolo Press provide online forms that can be adapted to your needs for $8 -$50 or more, depending on the level of service/advice provided. Be sure the document meets the requirements in your state.
- If you want a nondisclosure/confidentiality agreement tailored to your specific situation and anticipating potential legal issues, most attorneys charge $100 -$300 or more an hour. After meeting with you and hearing the details of your circumstances, a lawyer might quote a flat fee for creating a document, usually anywhere from $100 -$1,000. At an hourly rate, a simple, straightforward nondisclosure agreement can be drawn up with one or two hours of legal time, or $100 -$600; more complicated situations may require 3-4 hours of legal work for $300 -$1,200.
- Having an attorney review a nondisclosure/confidentiality agreement proposed by the other party with suggestions for changes could take an hour or less, or anywhere from $50 -$300 or more depending on how much work is involved and your attorney's hourly rate.
What should be included: | - A nondisclosure agreement is either "mutual" -- where both parties are exchanging confidential information -- or one-way, where only one party is disclosing information, such as explaining a secret to a contractor or a potential investorAllBusiness.CBSnews.com discusses when it makes sense to use a nondisclosure agreement.
- The main elements in a typical nondisclosure agreement are the definition of the confidential information, any exclusions to that confidential information (such as knowledge the employee already has before joining the company), the obligations of the person receiving the confidential information and any time periods involved (such as five years after quitting the company). Nolo Press provides an overview of nondisclosure agreements.
Additional costs: | - If your lawyer negotiates for you, it might take more time and cost more. A negotiation that could take you about 15 minutes in direct conversation with the other party might require an hour of your attorney's time.
Discounts: | - Some people cut costs and still get legal guidance by using a free sample nondisclosure agreement to create a document, then have an attorney review it. This works only if you start with a valid sample contract.
Shopping for a non-disclosure agreement: | - In business law, attorneys who handle legal disputes are litigators while those who handle contracts, securities and other business matters are transactional lawyers. An Illinois attorney provides tips for selecting a business lawyer.
- Often nondisclosure agreements are handled by intellectual property attorneys. Referrals to intellectual property attorneys are available from Lawyers.com and FindLaw.com.
- Your attorney should provide you with a written fee agreement; be sure you understand what is or is not included, and all potential costs.
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Article updated November 2008 |
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