Commercial Non Disclosure Agreement Template for United States

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Key Requirements PROMPT example:

Commercial Non Disclosure Agreement

"I need a Commercial Non-Disclosure Agreement for my software company to protect our proprietary algorithms and source code when discussing potential partnerships with manufacturing companies in Asia, with specific provisions for cross-border data transfer and export controls."

Document background
The Commercial Non-Disclosure Agreement is essential for businesses engaging in negotiations, partnerships, or other commercial relationships where sensitive information needs to be shared. This document, governed by U.S. federal and state laws, establishes clear obligations for protecting confidential information, including trade secrets, proprietary data, and business strategies. It defines the scope of protected information, permitted uses, security requirements, and consequences of unauthorized disclosure. The agreement is particularly important in today's business environment where intellectual property and proprietary information are critical business assets.
Suggested Sections

1. Parties: Identification of the disclosing and receiving parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms including Confidential Information, Trade Secrets, Representatives

4. Confidentiality Obligations: Core obligations regarding protection and non-disclosure

5. Permitted Uses: Authorized uses of confidential information

6. Term and Termination: Duration of obligations and termination provisions

7. Return of Information: Requirements for returning or destroying confidential information

Optional Sections

1. Whistleblower Provisions: Required if agreement covers employees, per DTSA. Used in employee/contractor NDAs

2. Export Control Provisions: Restrictions on international transfer of information. Used when dealing with international parties or technology transfer

3. Data Privacy Provisions: Specific protections for personal data. Used when personal data is involved

4. Non-Solicitation: Restrictions on hiring or soliciting employees. Used in business-to-business NDAs

Suggested Schedules

1. Schedule of Confidential Information: Detailed list of specific confidential information covered

2. Schedule of Authorized Representatives: List of individuals authorized to receive confidential information

3. Security Procedures: Specific security measures required for information protection

4. Notice Requirements: Contact details and procedures for required notices

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Defend Trade Secrets Act (DTSA) 2016: Federal law providing nationwide protection for trade secrets and including whistleblower immunity provisions that must be referenced in NDAs

Economic Espionage Act 1996: Federal criminal law that addresses trade secret theft and is relevant for enforcement provisions in NDAs

Uniform Trade Secrets Act (UTSA): State-level legislation adopted by most states that defines trade secrets and misappropriation, with state-specific variations

State Contract Laws: State-specific requirements for contractual validity, consideration requirements, and statute of frauds provisions

Employment Laws: State and federal laws affecting NDAs involving employees/contractors, including restrictions on non-compete provisions

Securities Laws: Federal and state regulations regarding publicly traded companies and insider trading considerations in NDAs

Industry-Specific Regulations: Sector-specific laws such as HIPAA (healthcare), Gramm-Leach-Bliley Act (financial services), and technology export controls

Statute of Limitations: State-specific time limits for bringing breach of contract claims and trade secret misappropriation actions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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