Creating a Data Sharing Agreement

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Data sharing agreements are essential documents that provide legal protection for businesses and organisations during the exchange and use of private data. These legally binding contracts outline what precisely is being exchanged, the security measures that must be taken, and the responsibilities of all parties should anything go wrong.

In this digital age where sharing data has become easier than ever before, it’s critical for businesses and organisations to understand their rights and obligations when exchanging data without a formal agreement in place. The potential risks associated with data sharing could lead to hefty fines or other legal action. As such, it’s important that companies ensure their agreements are up-to-date with relevant regulations and industry standards, as well as comprehensive in covering any potential risks resulting from the exchange or use of private information.

Fortunately, help is at hand: Genie AI provides free access to its open source legal template library - millions of datapoints that offer unparalleled insight into what constitutes a market-standard data sharing agreement. With these templates drafted by expert professionals available at no cost, anyone can create high quality customised legal documents quickly and easily through Genie AI’s platform - no lawyer required!

So if your business or organisation needs help creating a legally compliant data sharing agreement, simply head over to Genie AI today for step-by-step guidance on how you can take advantage of our template library completely free of charge. Don’t miss out - read on below now!

Definitions (feel free to skip)

Data Sharing: The exchange of information between two or more parties.
Data Sharing Agreement: A legal contract that governs the use and exchange of data by two or more parties.
Confidential Information: Information that is not to be shared with anyone outside of the parties involved in the agreement.
Responsibilities: Tasks and duties that are assigned to a party as part of the agreement.
Restrictions/Limitations: Rules or guidelines that limit or control the use or exchange of data.
Duration: The length of time in which the agreement is valid.
Rights of Termination: The ability of a party to end the agreement before its completion.
Owner of Data: The person or entity who owns the data being shared.
Recipient of Data: The person or entity who receives the data.
Third Parties: People or entities who are not part of the data sharing agreement but may be involved with the data in some way.
Legal Terms: The formal language of the agreement which outlines the responsibilities and restrictions of the parties.
Types of Data: The type of information being shared and exchanged.
Conditions: The rules or guidelines that must be followed when using or accessing the data.
Encryption: A method of protecting data by transforming it into a form that is unreadable by unauthorized users.
Security Measures: Techniques and procedures used to protect confidential information.
Audit: An examination of records and systems to ensure that data is being used correctly.
Dispute Resolution: A process used to settle disagreements between two or more parties.
Updating: Making changes to the agreement as needed.

Contents

• Understanding the purpose of data sharing agreements and their importance in protecting confidential information
• Identifying the parties involved in the data sharing agreement including the owner of the data, the recipient of the data, and other third parties
• Defining the legal terms of the agreement, including any restrictions on the use of the data
• Outlining the types of data that are being shared, and the conditions under which the data may be used
• Determining the duration of the agreement and any limitations on the use of the data
• Establishing protocols for sharing and storing the data, including encryption and other security measures
• Establishing an audit process to ensure compliance with the data sharing agreement
• Defining the responsibilities of each party in regards to the data sharing agreement, including ownership, liability, and other obligations
• Establishing a process for resolving disputes related to the data sharing agreement
• Establishing a process for updating the agreement and making changes when needed

Get started

Understanding the purpose of data sharing agreements and their importance in protecting confidential information

• Understand what data sharing agreements are and why they are important
• Learn the different types of data sharing agreements that are available and the purpose of each
• Research the legal implications of data sharing agreements and the importance of protecting confidential information
• Review any existing data sharing agreements in place with other partners to make sure you’re aware of any pre-existing obligations
• Check off this step when you have a clear understanding of data sharing agreements and the importance of protecting confidential information.

Identifying the parties involved in the data sharing agreement including the owner of the data, the recipient of the data, and other third parties

• Identify all parties involved in the data sharing, including the owner of the data, the recipient of the data, and any third-party entities that may have access to the data
• Establish the roles and responsibilities of each party, including what type of data is being shared, any applicable restrictions, and the timeframe for data sharing
• Create a list of all parties involved, including contact information and signature lines
• When all parties have agreed to the terms and provided their contact information, you can check this off your list and move on to the next step.

Defining the legal terms of the agreement, including any restrictions on the use of the data

• Establish the scope of the agreement, including the purpose of the data sharing, the length of the agreement, and the parties who will be bound by the agreement.
• Outline the restrictions on the use of the data, including who has access to the data, how it can be used, and what type of information can be shared.
• Specify any privacy or security requirements for the data, such as encryption or de-identification of the data.
• Set any legal requirements for the data, such as how the data can be used and who owns the rights to the data.
• Define any consequences for misuse or unauthorized use of the data.
• Set a timeline for when the agreement will be reviewed and/or renewed.

How you’ll know when you can check this off your list and move on to the next step:
You will know you have completed this step when you have established the scope of the agreement, outlined the restrictions on the use of the data, and specified any privacy or security requirements for the data. The agreement should also include any legal requirements for the data, consequences for misuse or unauthorized use of the data, and a timeline for when the agreement will be reviewed and/or renewed.

Outlining the types of data that are being shared, and the conditions under which the data may be used

• Identify the types of data that are being shared (e.g. customer data, financial data, etc.)
• Specify the conditions under which the data may be used, including any restrictions
• Agree on a set of rules for how the data should be handled, stored, and used
• Define the scope and purpose of the data sharing
• Outline any privacy or data security measures that must be observed
• Decide on the timeframe in which the data may be used

When you have outlined the types of data that are being shared and the conditions under which the data may be used, you can check this off your list and move on to the next step.

Determining the duration of the agreement and any limitations on the use of the data

• Decide on the length of time for which the data may be used.
• Outline the specific activities and purposes for which the data can be used.
• Draft a clause to set the duration of the agreement, and to specify any limitations on the use of the data.
• Consider any potential legal, ethical, or privacy issues which may arise from the data sharing agreement.
• Provide a date when the agreement will expire and any conditions for renewal.
• When the duration and limitations of the agreement have been determined and specified, the step is complete!

Establishing protocols for sharing and storing the data, including encryption and other security measures

• Identify the security protocols necessary to protect data while sharing and storing, such as encryption, authentication, access control, and data retention
• Determine the access rights and privileges that will be given to each party
• Establish procedures for data backup, recovery, and destruction
• Consider implementing additional measures, such as Multi-factor authentication, Data Loss Prevention (DLP) and encryption
• Establish a process for monitoring and auditing data access for compliance
• Document all security protocols in the data sharing agreement
• When all the security protocols have been established and documented, you can move on to the next step.

Establishing an audit process to ensure compliance with the data sharing agreement

• Determine how often the audit process will be conducted
• Identify who will be responsible for conducting the audit
• Outline the steps for the audit process, including what will be examined
• Specify any necessary corrective actions that should be taken if the agreement is not being followed
• Agree on a timeline for the audit process to be conducted
• When the audit process is completed, document the findings and any corrective actions
• Once the audit process is established, you can check this off your list and move on to the next step.

Defining the responsibilities of each party in regards to the data sharing agreement, including ownership, liability, and other obligations

• Determine who owns the data that is being shared
• Assign responsibilities and liabilities to each party involved in the data sharing
• Create a list of obligations for each party to abide by
• Establish a timeline for when the data sharing agreement will be reviewed and updated
• Outline the process for how disputes will be resolved
• Clarify the process for when the data sharing agreement will be terminated
• Draft a legally binding document for both parties to sign
• Verify that all parties understand and agree to the terms of the data sharing agreement

You’ll know you can check this off your list and move on to the next step when all parties involved have read, understood, and signed the legally binding document.

Establishing a process for resolving disputes related to the data sharing agreement

• Brainstorm possible dispute resolution processes including arbitration, mediation, or the use of a third-party arbitrator
• Consider the benefits and drawbacks of each dispute resolution process
• Discuss the dispute resolution process with the other party and reach an agreement
• Draft the dispute resolution process into the data sharing agreement
• Make sure both parties understand the dispute resolution process and sign off on the agreement
• Once both parties have signed off, the data sharing agreement is complete and ready to be implemented

How you’ll know when you can check this off your list and move on to the next step:

• Once the dispute resolution process has been drafted into the data sharing agreement, both parties have agreed to it, and it has been signed off by both parties, you can move on to the next step of establishing a process for updating the agreement and making changes when needed.

Establishing a process for updating the agreement and making changes when needed

• Identify the parties who will be responsible for updating the agreement.
• Establish a timeline for review and updates of the agreement.
• Determine how often the agreement will be reviewed.
• Identify a process for making changes to the agreement.
• Outline the procedure for approving changes to the agreement.
• Determine how changes to the agreement will be communicated to the other parties.
• Establish a process for addressing any disputes related to changes to the agreement.

You can check this off your list when you have identified the parties responsible for updating the agreement, established a timeline for review and updates of the agreement, determined how often the agreement will be reviewed, identified a process for making changes to the agreement, outlined the procedure for approving changes to the agreement, determined how changes to the agreement will be communicated to the other parties, and established a process for addressing any disputes related to changes to the agreement.

FAQ:

Q: What is a data sharing agreement?

Asked by Jessica on 4th April 2022.
A: A data sharing agreement is a legally binding contract between two or more parties that sets out the terms and conditions of a data sharing arrangement. It is used to protect the rights and interests of all parties involved, and ensure that data is shared securely and ethically. Data sharing agreements are commonly used in business, research, and other professional contexts.

Q: What are the different types of data sharing agreements?

Asked by Sarah on 8th June 2022.
A: There are various types of data sharing agreements, including those that cover the transfer of personal data, those that concern the sharing of confidential information, and those that govern the use of intellectual property. Other agreements may also be specific to certain industries or sectors, such as healthcare or finance.

Q: Are there any industry-specific regulations I should consider when creating a data sharing agreement?

Asked by Joshua on 23rd August 2022.
A: Depending on the industry, sector or business model in which you operate, there may be various regulations and laws which need to be taken into account when creating a data sharing agreement. For example, in the European Union (EU), companies must adhere to the General Data Protection Regulation (GDPR), while in the United States (US), companies must adhere to the Privacy Shield Framework. You should also consider any relevant national, state or local laws applicable in your jurisdiction.

Q: How do I ensure that my data sharing agreement meets international standards?

Asked by Rebecca on 14th November 2022.
A: When creating a data sharing agreement for an international context, it is important to take into account any relevant international laws and regulations which apply in each jurisdiction where the agreement will be used. For example, if you are dealing with personal data from countries within the EU, you should ensure that your agreement meets GDPR requirements. Additionally, you should also consider any specific regulations or requirements set out by global organisations such as the World Bank or United Nations.

Q: What should I include in my data sharing agreement?

Asked by Matthew on 19th December 2022.
A: A well-drafted data sharing agreement should include provisions outlining the scope of the agreement (i.e., what information is being shared and with whom); how the information will be used; how it will be protected; who is responsible for enforcing compliance with the terms of the agreement; how disputes will be resolved; and how long the agreement will remain in effect. It should also include provisions concerning liability and indemnification in case of any breach of contract or data misuse.

Q: What steps do I need to take to ensure that my data sharing agreement is legally binding?

Asked by Jennifer on 28th February 2022.
A: In order for a data sharing agreement to be legally binding, it needs to meet certain criteria including being in writing; specifying parties involved; outlining obligations of each party; stating consideration (what each party has agreed to provide); providing signatures from both parties; and being valid under applicable law(s). Additionally, it is important to ensure that both parties have read and understood all terms included within the agreement before signing it.

Q: Do I need to consult with a lawyer before creating a data sharing agreement?

Asked by Christopher on 6th May 2022.
A: While it is not strictly necessary to consult with a lawyer before creating a data sharing agreement, doing so can help ensure that your agreement meets all legal requirements and provides sufficient protection for your interests as well as those of your partner(s). Additionally, consulting with a lawyer can help you better understand any relevant legal implications associated with data sharing agreements in your jurisdiction and provide guidance on specific clauses which may need to be included within your document.

Example dispute

Suing Companies Over Data Sharing Agreements

• The plaintiff may claim that the company did not uphold the data sharing agreement as specified in the contract, or that the company has violated state or federal regulations that govern the use of customer data.
• The plaintiff may also claim that the company’s negligence in sharing customer data has caused the plaintiff harm, such as financial losses or identity theft.
• The plaintiff can seek damages for any losses caused by the company’s breach of contract or negligence.
• The plaintiff may also seek an injunction to prevent the company from continuing to share customer data in violation of the agreement or any applicable regulations.
• Settlement may be reached through a negotiated agreement, or through mediation or arbitration.
• If the case goes to court, damages may be awarded based on the amount of harm caused by the company’s actions.

Templates available (free to use)

Data Sharing Agreement
Data Sharing Agreement Mbm Commercial
Data Sharing Agreement Uk Private Controller To Uk Eea Private Controller
Sample Data Sharing Agreement

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