This independent contractor nondisclosure agreement is between
1. CONFIDENTIAL INFORMATION.
In conjunction with the Contractor's work with the Company, the Company may (but is not required to) disclose to the Contractor, or the Contractor may develop or learn, Confidential Information. "Confidential Information" means:
2. OBLIGATION TO MAINTAIN CONFIDENTIALITY.
3. EXCLUSIONS.
The obligations and restrictions of this agreement do not apply to that part of the Confidential Information that:
4. INVENTIONS.
5. RETURN OF PROPERTY.
At the Company's request, the Contractor shall promptly (and no later than
6. THIRD-PARTY INFORMATION.
The Contractor recognizes that the Company has received and in the future will receive confidential or proprietary information from third parties, subject to a duty on the Company's part to maintain the confidentiality of such information and to use it only for certain limited purposes. While the Contractor is providing services to the Company and afterwards, the Contractor owes the Company and such third parties a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm, or corporation except as necessary in carrying out the Contractor's work for the Company (consistent with the Company's agreement with such third party) or to use it for the benefit of anyone other than the Company or such third party (consistent with the Company's agreement with such third party) without the prior written consent of the Company. Any such information will be considered Confidential Information for purposes of this agreement.
7. FORMER EMPLOYER OR THIRD-PARTY CONFIDENTIAL INFORMATION.
The Contractor understands that it is the Company's policy to maintain the rights of any party with which the Contractor has a confidentiality or proprietary rights agreement. While the Contractor is working with the Company, the Contractor may not improperly use or disclose any proprietary information or trade secrets of any former or concurrent employer or other person or entity or bring onto the premises of the Company any unpublished document or proprietary information belonging to that employer, person, or entity unless the employer, person, or entity consents in writing. The Contractor has no existing obligations to others that are inconsistent with any of the provisions in this agreement, except for those identified on Exhibit C.
8. NOTIFICATIONS.
The Contractor hereby authorizes the Company to notify others, including customers of the Company and any future or prospective employers of the Contractor, of the terms of this agreement and each party's rights and obligations in it.
9. OWNERSHIP RIGHTS.
The Contractor acknowledges that the Confidential Information is and will be the Company's sole property, even if suggestions made by the Contractor are incorporated into the Confidential Information. The Contractor obtains no rights by license or otherwise in the Confidential Information under this agreement. The Contractor may not use the Confidential Information as a basis on which to develop or have a third party develop a competing or similar undertaking.
10. NATURE OF RELATIONSHIP.
The relationship of the parties under this agreement is one of independent contractors, and no joint venture, partnership, agency, employer-employee, or similar relationship is created by this agreement. Neither party may assume or create obligations on the other party's behalf, and neither party may take any action that creates the appearance of that authority.
11. CHOICE OF LAW; EQUITABLE RELIEF.
12. AMENDMENTS.
No amendment to this agreement will be effective unless it is in writing and signed by both parties or an authorized representative.
13. ASSIGNMENT AND DELEGATION.
14. COUNTERPARTS; ELECTRONIC SIGNATURES.
15. SEVERABILITY.
If any provision in this agreement is, for any reason, held to be invalid, illegal, or unenforceable in any respect, that invalidity, illegality, or unenforceability will not affect any other provisions of this agreement, but this agreement will be construed as if the invalid, illegal, or unenforceable provisions had never been contained in this agreement, unless the deletion of those provisions would result in such a material change that would cause completion of the transactions contemplated by this agreement to be unreasonable.
16. NOTICES.
17. WAIVER.
No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this agreement will be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, and no waiver will constitute a continuing waiver, unless the writing so specifies.
18. ENTIRE AGREEMENT.
This agreement constitutes the final agreement of the parties. It is the complete and exclusive expression of the parties' agreement with respect to the subject matter of this agreement. All prior and contemporaneous communications, negotiations, and agreements between the parties relating to the subject matter of this agreement are expressly merged into and superseded by this agreement. The provisions of this agreement may not be explained, supplemented, or qualified by evidence of trade usage or a prior course of dealings. Neither party was induced to enter this agreement by, and neither party is relying on, any statement, representation, warranty, or agreement of the other party except those set forth expressly in this agreement. Except as set forth expressly in this agreement, there are no conditions precedent to this agreement's effectiveness.
19. HEADINGS.
The descriptive headings of the sections and subsections of this agreement are for convenience only, and do not affect this agreement's construction or interpretation.
20. EFFECTIVENESS.
This agreement will become effective when all parties have signed it. The date this agreement is signed by the last party to sign it (as indicated by the date associated with that party's signature) will be deemed the date of this agreement.
21. NECESSARY ACTS; FURTHER ASSURANCES.
The parties shall use all reasonable efforts to take, or cause to be taken, all actions necessary or desirable to consummate and make effective the transactions this agreement contemplates or to evidence or carry out the intent and purposes of this agreement.
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Each party is signing this agreement on the date stated opposite that party's signature.
DDDDDDDDDDDDDDDDDDDDDDD | |
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Date: ______________________________ | By: ____________________________________________________________ |
Name: Title: |
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Date: ______________________________ | By: ____________________________________________________________ |
Name: |
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EXHIBIT A |
LIST OF PRIOR INVENTIONS AND ORIGINAL WORKS OF AUTHORSHIP |
1. Except as listed in section 2 below, the following is a complete list of all Prior Inventions that were made, conceived, or first reduced to practice by the Contractor, alone or jointly with others, before his or her agreement with the Company:
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Title | Date | Identifying Number or Brief Description |
I have no inventions or improvements to list. | _____________ (Initials) |
I have attached _____ additional sheets to this Exhibit A. | _____________ (Initials) |
2. Because of an existing confidentiality agreement and the duties of confidentiality that the Contractor owes to the parties listed below, the Contractor cannot complete the disclosure in section 1 above with respect to the inventions or improvements listed generally below:
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Invention or Improvement | Party Names | Relationship |
I have attached _____ additional sheets to this Exhibit A. | _____________ (Initials) |
Date:____________________________________ |
By:_______________________________________ Name: |
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EXHIBIT B |
CERTIFICATION |
This is to certify that I do not have in my possession, and I have not failed to return, any devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any of these items, belonging to
I further certify that I have complied with the terms of the contractor intellectual property rights and nondisclosure agreement signed by me, including the reporting of any inventions and original works of authorship (as defined in the agreement), conceived or made by me (solely or jointly with others) covered by that agreement.
I further agree that, in compliance with the contractor intellectual property rights and nondisclosure agreement, I will preserve as confidential all trade secrets, confidential knowledge, data, or other proprietary information relating to products, processes, know-how, designs, formulas, developmental or experimental work, computer programs, data bases, other original works of authorship, customer lists, business plans, financial information, or other subject matter pertaining to any business of the Company or any of its employees, clients, consultants, or licensees.
Date:____________________________________ |
By:_______________________________________ Name: |
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EXHIBIT C |
LIST OF PRIOR CONFIDENTIALITY OBLIGATIONS |
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Date of Agreement or Obligation | Parties' Name | Brief Description |
I have no prior confidentiality obligations. | _____________ (Initials) |
I have attached _____ additional sheets to this Exhibit C. | _____________ (Initials) |
Date:____________________________________ |
By:_______________________________________ Name: |
How-to guides, articles, and any other content appearing on this page are for informational purposes only, do not constitute legal advice, and are no substitute for the advice of an attorney.
Companies often face the challenge of finding the right personnel equipped with the specialized skills necessary to accomplish specific tasks. The traditional route of hiring regular employees for every role can be time-consuming and costly, involving extensive recruitment processes, onboarding procedures, and long-term commitments.
For example, when you hire an employee, the company has to bear the cost of taxes, provide paid time off, provide health insurance, and cover other benefits. Sometimes, the employee hired might also be incompetent, and terminating them from the company is another tedious process.
Given these challenges, many businesses turn to independent contractors to fulfill their needs.
Companies hire independent contractors because they offer a flexible solution to meet fluctuating demands without the long-term obligations attached to traditional employment.
However, a critical concern lies amidst the benefits of engaging independent contractors: safeguarding confidential information. As part of the work, companies often have to disclose confidential information to their hired independent contractors. Like how employees need to sign an employment non-disclosure agreement (or employee NDA) when they’re hired, independent contractors should also be made to sign an independent contractor non-disclosure agreement along with their independent contractor agreement.
An independent contractor non-disclosure agreement is a legal document that outlines the terms and conditions regarding the protection of confidential information shared between a company and an independent contractor. Essentially, it is a contractual safeguard against the unauthorized disclosure or use of sensitive data.
For example, imagine a software development company hiring an independent contractor to develop a new application. The company requires the contractor to sign an independent contractor NDA to protect its proprietary algorithms and client data. This agreement prohibits the contractor from disclosing confidential information he gains access to during the project and outlines the legal consequences of breaching the agreement.
Having an independent contractor NDA offers several benefits:
One of the primary benefits of an independent contractor NDA is the protection of intellectual property (IP) and trade secrets. Companies often entrust independent contractors with access to valuable information, such as proprietary technology, client lists, or business strategies. By requiring contractors to sign NDAs, businesses can mitigate the risk of unwanted disclosure and potential exploitation of their trade secrets.
By clearly defining the scope of confidentiality and the contractor's obligations, an NDA sets expectations from the outset, reducing the likelihood of misunderstandings or disputes down the line.
By outlining what constitutes confidential information and the contractor's obligations regarding its protection, an NDA helps prevent possible breaches and misuse of data.
In the unfortunate event of a breach of confidentiality, an independent contractor nondisclosure agreement provides a legal framework for recourse. These agreements typically outline the consequences of unwarranted disclosure, including potential monetary damages and termination of the contractor's engagement. A clear contractual framework enhances the company's ability to enforce its rights and seek remedies for breaches.
Many industries are subject to regulations governing the protection of sensitive information, such as the Health Insurance Portability and Accountability Act of 1996 (HIPAA) in healthcare prevents the disclosure of sensitive patient health information without the informed consent of the patient. A non-disclosure agreement helps ensure compliance with these requirements by mandating strict confidentiality measures.
Signing an independent contractor non-disclosure agreement can foster trust and collaboration between companies and independent contractors. It reassures contractors that their contributions will be treated with respect and confidentiality, enhancing their willingness to engage with the company. Additionally, clear communication about confidentiality expectations can strengthen the working relationship and promote a culture of mutual trust.
Start the section by introducing the parties involved in the agreement. The party who hires an independent contractor is addressed as the “company,” and the professional expert hired is called the “contractor” in the agreement.
This part defines what constitutes confidential or proprietary information with respect to the contract. A company’s confidential information can be:
This clause outlines the independent contractor's obligation to maintain the confidentiality of the company's proprietary information both during and after the term of the agreement. It emphasizes the contractor's duty to protect the confidentiality of such information from unauthorized disclosure. This even applies to the subcontractors hired by the independent contractor.
This section specifies the duration of the NDA, including its commencement and termination dates. It clarifies the time period during which the contractor is bound by the terms of confidentiality.
Here, certain types of information are excluded from the confidentiality obligations outlined in the agreement. This typically includes information already in the public domain or known to the contractor before entering into the agreement.
This section addresses various aspects of inventions created or disclosed during the contractor's work with the company. It covers areas such as inventions retained and licensed by the contractor before engaging with the company, disclosure of company inventions, assignment of company inventions, maintenance of records, and patent and copyright registrations.
It specifies the contractor's obligation to return any property or materials belonging to the company, including all copies or duplicates, upon termination of the agreement.
This clause addresses how the contractor should handle third-party confidential information that may be disclosed to them during the course of their work.
This part prohibits the contractor from using or disclosing any confidential information belonging to their former employers or other third parties.
This section outlines the procedure for providing notice in the event of any breach or potential breach of the non-disclosure agreement and any other communications required under the agreement.
Here, the agreement clarifies that the company retains ownership rights to all confidential information and intellectual property disclosed to the contractor during their engagement.
This section clarifies that the company's and contractor's relationship is not an employer-employee one; they function as independent entities.
Choice of law
This clause establishes the governing law under which the agreement will be interpreted and enforced.
It outlines the procedure for making amendments or modifications to the agreement and specifies that any changes must be made in writing and signed by both parties.
This section addresses whether either party can assign or delegate their rights and obligations under the agreement to another party.
It states that if any provision of the agreement is found invalid or unenforceable, the remaining provisions shall remain in full force and effect.
This clause specifies the method by which formal notices or communications should be delivered between the parties.
It clarifies that the failure to enforce any provision of the agreement shall not constitute a waiver of that provision or any other provision. For example, if the contractor has promised to deliver their services on the 15th of every month but one time they delayed it by six days and for that, they’re liable to a set fine. In such a scenario, if the company waives off the fine doesn’t mean that the company has waived off fines for future delays.
This section states that the parties involved are signing the document according to the terms and conditions mentioned in the agreement. Any verbal or other communications made prior to or during the agreement will not be considered valid and enforceable.
It clarifies that the headings used throughout the agreement are for convenience and reference purposes only and do not affect the interpretation of the provisions.
This clause specifies the agreement's effective date and states that it remains in effect until terminated in accordance with its terms.
This section allows and acknowledges using electronic signatures to sign the independent contractor non-disclosure agreement.
By incorporating these essential clauses into an independent contractor non-disclosure agreement, both parties can effectively protect sensitive information and intellectual property while fostering a productive working relationship.
In the evolving landscape of business relationships, independent contractors play a crucial role in driving innovation and flexibility. However, with access to sensitive company information, the risk of unwarranted disclosure increases. Independent contractor NDAs serve as a vital tool for mitigating this risk, protecting valuable intellectual property, and preserving the trust between parties. Companies can safeguard their interests and foster successful collaborations with independent professionals by understanding the importance of these agreements and incorporating them into their contracting processes.
From customer lists to proprietary software to blueprints and more, all companies have information they don’t want shared. An independent contractor non-disclosure agreement helps everyone understand what should stay private and what can be disclosed.
Yes, you can create your own non-disclosure agreement from scratch if you know the important clauses that must be included in the document. But you can avoid such tedious hassles and use online templates to make the job easier. One such service provider is LegalZoom, which provides comprehensive NDA templates that suit your requirements. You can also seek the help of an attorney to draft your non-disclosure agreements based on your business needs.