NDA’s in Plastic Injection Moulding | BEC Group

As a business that deals with new inventions, innovative products, and cutting-edge applications, BEC Group’s plastic injection moulding clients often wish to engage in NDAs. In this blog, find out what an NDA is, why it’s used and whether you might benefit from having one (they’re moulders, not lawyers, so do seek independent legal advice if you think an NDA is appropriate for your business!).

What is an NDA?

An NDA, confidentiality agreement, or non-disclosure agreement is a legally binding contract between two or more parties that protects confidential information from being disclosed to other people or parties outside of the agreement.

NDAs prevent designs, applications, or trade secrets from being leaked to third parties in the plastic injection mouldings industry.

An NDA isn’t the same as a patent, a trademark or intellectual property. However, an NDA can be used to help protect your intellectual property.

What is in an NDA?

Non-disclosure agreements vary from case to case. Typically, they state the two (or more) parties involved in the agreement and define what confidential information cannot be disclosed, for instance, product designs, intellectual property, market strategy, etc.

The agreement also states the consequences of leaking any of this specified information. A period for the NDA to be enforced is often included- this may be months, years, or indefinitely from when the NDA is signed. There is much more specific information included within an NDA, but this forms the main basis of the contract.

Should you use an NDA?

Whether you think an NDA is necessary for your project is up to you. Many businesses find NDAs a clear way to keep sensitive information private with a manufacturer or business partner. It allows for clear consequences for information leakage and is a relatively low-cost measure to implement.

On the other hand, businesses unused to NDAs may feel it creates an atmosphere of distrust with a new business partner. Additionally, they can be difficult and costly to enforce.

If you decide you do require an NDA, a solicitor or IP attorney will draw up an agreement based on your precise requirements.