What is NDA and When to Use it in Mobile App Development?

In the present ‘highly competitive’ world, your app idea is the driving force for your business. It allows you to increase the brand presence, engage customers, prompt revenue and much more. In such a scenario, it is essential to safeguard your app idea; if stolen, you will be left with nothing but regret. When talking about securing your app idea, the most significant method available in the market is NDA.

NDA :

A non-disclosure agreement (NDA) is a legal contract between two parties that indicates confidential information or material that the parties wish to share regarding mobile application development but want to confine others access to it. In other terms, it is an agreement that restricts the two participating individuals or companies to share the confidential information with anyone or use the information for other purposes.

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When to Ask for NDA in App Development :

A non-disclosure agreement is a crucial part of mobile app development but is not recommended in all the situations. You can’t ask everyone you talk to about your app idea to sign this agreement. According to the top application development agencies, this might restrain the innovation; limiting you from exploring the best optimal opportunities. But, there are various situations where it is required for protecting your application idea. Some of them are:

• When your Idea is Unique and Innovative :

If your discussion is slowly and gradually turning from simple talking about the idea to exploring the specific processes and features, it’s the right time to ask for an NDA. This is essential to ensure that your idea does not get taken by someone else and launched in the market before you. According to our experts, ideas are not something that falls under copyright protection. However, the specific methodology does. So, protect the methodology with a non-disclosure agreement.

Protecting your idea does not mean you can’t share it with anyone in the IT development sphere, but have to discuss the detailed only with those required- only with those who have signed the agreement.

• When working with Independent Contractors and Vendors :

When you are seeking for the services of someone outside your business, like some independent contractor or vendor, it is always good to sign an NDA. This will help you to protect your idea in the near future and have a complete authority over it throughout.

According to our development team, asking for a non-disclosure agreement is not so successful idea when looking forward to work with some investors who are backing your business. This is so because several investors get irritated on asking for one.

• When it is a Big Money Project :

It is not easy to ignore the risk of getting the idea stolen when you have invested a sky-high amount into it. If you do so, your money will be nothing more than a donation, leaving your business heavily affected financially.

• When you have to Secure Your Trade Secrets :

If you have got a trade secret like Pepsi and Apple, you have to go for NDA. This will be helpful to maintain your brand reputation and sales. For example: If Apple gets iPhone developed from some manufacturers without a non-disclosure agreement signed, the manufacturers will more likely make a generic iPhone and sell themselves. This would cost millions of loss to the Apple is sales. The same is true for every company, including yours.

• When you have to preserve your Business relationships :

When working in partnership, a non-disclosure agreement is again of utmost importance to make it certain that one party does not interfere with the working of the other, and maintain healthy, long-lasting relationships.

Conclusion :

Now as you know what is NDA, its importance and what are the situations when you should go for it, get ready to reach the right app partner and launch your own app! For any further guidance or getting our mobile app development services, contact us anytime!