Software Developer Nondisclosure Agreement: 5 Issues to Cover

software developer nondisclosure agreementIf you’re developing an app, you can benefit from having a signed software developer nondisclosure agreement (NDA) when dealing with clients and competitors.

For example, in a recent lawsuit, a software developer claimed that its rival engaged in misconduct, including breach of a nondisclosure agreement. The jury agreed and awarded almost $44 million.

However, don’t try to put together the contract without the help of an experienced software lawyer if you want the agreement to be enforceable.

Related Article: Software Development Agreement – Who Really Owns The Intellectual Property?

Important Issues to Discuss with Your Software Lawyer

When talking with your software lawyer, here are five issues to consider for your agreement (there will be others too):

  1. Choice of Law. What law will govern the NDA if there’s a dispute?
  2. Jurisdiction. Which courts will have jurisdiction to handle a lawsuit if there’s a breach of the agreement?
  3. Parties. Which parties should sign the contract? For example, if there are subcontractors involved in software development, should they be required to sign nondisclosure agreements too?
  4. Liquidated Damages. Will you include a liquidated damages provision with a sum substantial enough to deter breaches?
  5. Attorneys’ Fees. If there’s a dispute, is each party responsible for his own legal fees or do you want a loser pays provision?

Of course, any NDA is only as good as the person signing it. If you’re dealing with someone dishonest (and why are you?), you should expect there will be a breach of any agreements you reach. In other words, due diligence is key before entrusting anyone with information that needs to be protected by a confidentiality or nondisclosure agreement.

Related Article: Software Contract – How To Pick The Right One

Where can you get a software developer nondisclosure agreement?

If you’re looking for a customized software developer nondisclosure contract or other software agreements to protect you and your business, you may want to have a phone consultation with Dallas Software Lawyer Mike Young.

However, it may make sense for you to invest in our Software Development Legal Protection Package instead to obtain additional levels of protection for your intellectual property.

Author Mike Young, Esq.

Internet Business Lawyer Mike Young prevents and solves legal problems for clients. To get legal advice from Mike, click here.

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