Patent Nondisclosure Agreement

A Patent Nondisclosure Agreement is a contract used to protect information relating to an invention, breakthrough product, process, idea or similar secrets from being utilized or shared by outside parties. The NDA comes in handy in the “patent pending” period, which can take anywhere from one to three years. During this time, the owner of the information may need to share details with manufacturers, investors, contractors, prototype makers or invention agents. The NDA ensures that the recipient of the confidential information is legally bound to keep it confidential and not use it for unauthorized purposes.

Patent Nondisclosure Agreements are not submitted to any patent office or government agency. They are contracts between the discloser and the recipient of the confidential information. The signed agreement is retained by both parties for their records. It's a legal document that would be used in a court of law if a dispute arose regarding a breach of confidentiality.

Anyone who is disclosing confidential information related to a patent application should have the recipient of that information sign a Patent Nondisclosure Agreement. This includes inventors disclosing their inventions to potential investors, manufacturers, marketers, attorneys or anyone else who needs to know the details of the invention before the patent is officially filed. It's the recipient of the confidential information who signs the NDA, agreeing to keep the information secret. The discloser of the information presents the NDA for signing.