When a founder or CXO (Chief Executive Officer) shares private information with someone they don’t know, they make them sign a paper saying that they won’t share it with anyone else. That way, if the person who signed the document shares it with anyone else, the company could take legal action.
NDA for customers and channel partners deters the theft, misuse, misrepresentation of intellectual property. NDA is signed at the commencement of the negotiations between business entities, even when it is skeptical whether the parties will agree to come together to enter into a business agreement.
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