As you hire an iOS app development company, you have to share all your requirements, ideas for your app, and other confidential information with that company. To ensure that you don’t lose your idea or any sensitive information, the Non-Disclosure Agreement (NDA) comes into the picture. An NDA will give you a sense of confidence and peace that your idea is safe while being developed. It not only ensures the app’s confidentiality but also keeps conflicts at bay. Let’s understand easily:
Suppose you have a new app idea that you believe could be the next big thing. However, the problem is that there is only value in the idea once you develop an app for it. Thus, you hire iOS app developers who will create an app based on that idea. But you are too afraid to share your app idea with anyone.
After hiring the iOS app development company, it also becomes difficult for anyone concerned about protecting mobile app ideas and other important information. So, to keep your app idea secret, the NDAs are preferred. In this article, we will go through every significant aspect of NDA and get familiar with NDA-related terms and definitions.
What is a Non-Disclosure Agreement?
An NDA is a special legally binding document that entails the terms and conditions under which one party (the disclosing party, here the app’s idea owner) shares confidential information with another party (the receiving party, here is the iOS app development company). It mentions that the receiving is legally bound to keep the shared information confidential and not disclose it to any third party without consent or authorization.
Why is it important to sign an NDA?
An NDA is essential because it keeps your app’s idea secret and protects it from being copied. If you have registered your idea with the copyright office of your country, then you can take legal action if someone copies your idea.
Generally, when a company hires an app development company, it demands an NDA as it needs to share sensitive information about its business.
Furthermore, if the app idea is tied to a crucial corporate operation, such as manufacturing, research, or finance, it must exercise prudence while managing sensitive data. Now, if you are developing an app with unmatched features and a new concept, then you will seek assurance about the complete privacy of the app before its launch. So, to secure their sensitive information or prevent their app idea from being stolen, they require their mobile app development services provider company to sign an NDA.
Types of NDAs:
There are three significant types of non-disclosure agreements based on the length and the parties involved. The classification is the same for the software or mobile app NDA. Furthermore, suppose the app development contract comprises parties from multiple countries and different languages. In that case, the agreement must be appropriately translated and simplified to comply with the laws of the parties’ home countries. Alternatively, you can create an NDA for both the client and the developer.
1. Unilateral NDAs:
It is the most commonly used non-disclosure agreement involving two parties: an individual and a company, or two companies. However, only the party, generally the idea’s owner, exacts the confidentiality of information and data. Thus, an NDA is required when the expectation (idea owner) shares the concept with a tech-solution agency (signatory).
The expectant thereby places the signatory under a legal obligation to maintain trade and idea secrecy. A unilateral NDA specifies that the signatory may be prosecuted if the agreement is breached. These particulars are at the essence of how NDA works.
2. Bilateral NDA (Two-Way NDA):
In bilateral NDA, both the parties are the signatory of the contract. Both parties are legally bound and restricted from sharing or exchanging crucial information with companies or individuals outside.
3. Multilateral NDA:
If your idea has the potential to become a scalable business, it will necessitate the engagement of several stakeholders. In this case, a multilateral non-disclosure agreement for app development is appropriate. It eliminates the need to sign multiple unilateral or bilateral contracts and brings all parties into agreement at once.
What is the Right Stage to Sign the NDA?
Before even the development begins, an NDA for your app’s idea is required so that sensitive information is not disclosed to anyone. As there is cut-throat competition in the app’s market, there is a high chance that your idea will get stolen. That’s why you must get an NDA signed right before collaborating with other parties, outsourcing your iOS app development to any iOS app development company, or hiring dedicated developers. Go through the table below:
| STAGES | DESCRIPTION |
| App Idea Conception | An NDA is optional if the mobile app concept is fully developed and discussed with any prospective parties. However, you must sign one as soon as possible after it is processed. |
| Finding a Business Partner | Creating a mobile app is a multifaceted endeavor. You would need partnerships in every phase and area of app creation, such as programming, marketing, financing, and sales. |
| Developer mode begins | If you plan to outsource your project to a company remotely located, a robust NDA should be available with the developer’s approval to local jurisdiction. |
| Pre-production | Several business-related goals, such as product distribution, may require additional collaboration before the app is deployed. |
Common Elements of NDA in App Development:
An NDA is a legal document that consists of tons of legal terms that you are not required to learn or memorize. However, you must know these standard terms:
1. Parties involved:
You must know the parties involved in the contract. The parties can be individuals or organizations. For example, while outsourcing your iOS app development, you can sign NDAs with an agency or company, developers, testers, designers, etc., who would have access to your company’s crucial information.
2. Subject of Confidentiality:
Determine what data is sensitive and mention it in the NDA. It could be the complete information of your idea that you want to remain confidential from 3rd parties.
You should ensure that both parties are fully aware of the information with no ambiguities. Additionally, if the receiver needs to share your personal information with their business partners to complete the project, make sure the NDA includes all of them.
3. Time Duration of Agreement:
NDAs are not for eternity. You need to specify the period during which the confidential information must be kept secret or the date after which the agreement becomes void and no longer protects the information. Generally, the range of NDAs is 1-5 years.
4. Obligations:
The obligations refer to the responsibilities of the signatory party(s). For instance, private data should be used only for the specified purposes in the agreement and only shared with the selected individuals to achieve project goals.
5. Agreement Violation Consequences:
Although the NDA secures your information, in some cases, violation happens, and the confidential data goes public. In such circumstances, the contract should outline the potential repercussions and penalties. There are many remedies available, including fines and compensation for losses caused by data leaks.
Wrapping Up:
An NDA not only gives you assurance and security of your idea but also reflects the professionalism of your chosen iOS app development company. Those who are ready to sign an NDA upfront believe in upholding the client’s data security with utmost importance. At Octal IT Solution, the best iOS app development company in India, we give the utmost protection to the client’s idea or data and sign a comprehensive NDA, entailing all the required terms and conditions. Let us know your requirements.
