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  • tilak replied to the topic NDA vs Patents in the forum Consultants and Legal Basics 7 years, 4 months ago

    In its simplest form, an NDA (Non Disclosure Agreement) is a legally binding contract that creates a confidential relationship between persons holding an idea or invention and persons to whom this information will be revealed. NDAs help to protect sensitive information. More specifically, NDAs also outline what information is considered private and what information can be shared publicly. In the healthcare industry, NDAs are very common amongst lab workers who have access to test results before patients. In contrast to NDAs, a patent is a right granted to an inventor by the federal government that permits them from excluding others from making, selling or using the invention or product over a designated time period. This encourages inventions to be made that are unique and useful in society. When comparing an NDA and a patent, it is important to understand that an NDA only recognizes the parties who’s signatures are on the contract, whereas, a patent provides documented proof that specific individual owns the idea entirely. Patents are the only way to guarantee that a specific idea is protected completely.