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Most NDAs have two parts: non-disclosure and non-use. That means that parties won't disclose the confidential info that is shared, and they won't use that information except for the express purpose of the agreement (usually assessing a partnership or customer relationship).

One Silicon Valley company that is well-known for not having a non-use clause is Intel. This means that they can use any confidential information in their own business, in any way they desire.

It's not problematic to sign an agreement like this with another startup because they are unlikely to have the time/money to start competing with you on your home turf. But big companies can squash you like a bug if they so desire.

Other reasons to carefully review an NDA:

Make sure it's bilateral, not unilateral

Check to see how long it's in effect for — usually the parties are permitted to disclose / use the info after 2-5 years

Make sure the above clause has an exception for trade secrets that are still secret (which they should not be allowed to disclose even after the expiration)




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