Non-Disclosure Agreement for Partnering Businesses
Applicant: Killy Inc.
Applying for: Non-Disclosure
Time: 3 business days
- This company wanted to partner with another company, but both of the companies did not want the other stealing their algorithm.
- Both of the companies spent over 1 million dollars to create an algorithm for their website.
- We’re on a time crunch to form a non-disclosure agreement, which can take months.
- Both parties wanted their information to be confidential.
There was a new fashion website that was able to link influencers to brands. This company wanted to make an impact in the fashion world but needed help doing so. They decided the best thing for them was to partner with another start-up because both of these companies felt that cooperating was the best way to help them move up in the corporate world.
But the founders of the fashion website were concerned. They had spent over 1 million dollars researching the algorithm they created, and they didn’t want the other company to steal their intellectual property and render their website obsolete. They also worried that some of their employees would leave and join the other company. In the end, both sides agreed that a non-disclosure agreement was their best chance at protecting their assets.
The problem is negotiating all the various terms of an NDA can take months, time neither company could spare. They were on a time crunch to figure this situation out soon.
They looked at many different law firms to help them settle on an agreement, and after receiving several recommendations from other companies who worked with us, they decided to trust Tsang & Associates with drafting an agreement that worked for everyone.
KEYS TO SUCCESS
Tsang, being a certified mediator, got both companies’ founders together to talk about their mutual goals. Knowing that they were in a time crunch, he quickly figured out what was needed to satisfy everyone and ensure that sensitive information was protected. Both parties drafted up their non-disclosures, and we quickly consolidated the two and drafted an agreement that satisfied everyone. We also gave feedback and suggestions on individual terms. We made sure to take our time putting in all the details in this agreement so both parties would be clear on what the guidelines and the expectations were for each other.
Both parties agreed to disclose confidential information to each other, but they had to inform the other person beforehand that the information was confidential. When informed of the confidential info, the receiving party had to refrain from disclosing the info to third parties for three years.
In the end, because of our many years of experience with negotiating contracts, we helped the companies come to a satisfying agreement in a matter of days, instead of the weeks or months, it would have otherwise taken. Both groups were very grateful for our assistance and are now thriving in their businesses.
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