IP & NDA 101: What It Is, Who Uses It, Why They Use It | Pros & Cons

By: Amer Al-Nasser/ AGIP Nordic

What Is an NDA?
An NDA (Non‑Disclosure Agreement) is a promise to keep specific information secret. 
In short, it’s a contract that says: You’ll hear something confidential. Don’t share it.
Common types of NDA:
●One‑way (unilateral): Only one side shares secrets.
●Two‑way (mutual): Both sides share secrets.

Who Uses NDAs?
Inventors, designers, or companies may need to disclose details of an invention, design, or creative work to potential partners, manufacturers, or advisors before filing patents or design rights. An NDA prevents those parties from misusing or disclosing the information.
Why Bother with One?
●Signal seriousness: We respect your IP, please respect ours.
●Enable open talk: Share more than common information.
●Create a paper trail: Helpful if something leaks.

Benefits vs. Cons
Benefits
●Encourages deeper, faster knowledge sharing once signed.
●Sets expectations and remedies if someone leaks information.
Cons
●Friction and Delays: Redlines, delays, and “legal says no.”
●Bad Optics: Asking too early can signal “distrust” to the other party.

When You Probably Don’t Need One
●First intro call or initial meeting.
●Industry panels, conferences, roundtables.
●Sharing “internal information” that is already online or in the public domain.

Bottom Line
Use NDAs to unlock conversations, not block them. 
Need a proper NDA for your upcoming IP meeting?
Abu-Ghazaleh Intellectual Property (AGIP) can review, right-size, and train your team to use NDAs smartly in IP negotiations.

Find out more at www.agip.com