How do non-disclosure agreements (NDAs) work in international sourcing?

NDAs are your secret weapon for protecting sensitive information when working with suppliers around the world. Here’s how they work:

• What’s the Point?: An NDA legally requires the supplier to keep your designs, processes, and any other confidential information private.
• What’s Included?:
  • Scope of Confidentiality: Clearly outline exactly what information the NDA covers.
  • Duration: Specify how long the agreement will remain in effect, even after the business relationship ends.
  • Penalties: Make sure there are real consequences for breaking the agreement, like financial penalties or legal action.
• Make It Enforceable: An NDA is only as strong as the law backing it up, so ensure it complies with the legal system in the supplier’s country.
• Mutual NDAs: Sometimes, both parties sign an NDA to protect sensitive information being shared both ways.

NDAs give you peace of mind and a solid legal foundation when sharing your ideas or designs.