Businesses use non-disclosure agreements to institute confidentiality between two parties, such as an employee of the business and their clients. There are several different types of non-disclosure agreements, and industries use each type for different purposes.
Here are some of the ways that different industries use non-disclosure agreements in Massachusetts.
To conceal their ideas from competitors
Say a company has the responsibility of developing new products. If another company got ahold of its ideas, it could compromise and drive profits away from the company creating the new product. Businesses can have their employees sign a non-disclosure agreement to secure a promise that they will not discuss any products not yet released to the public, even if an employee ends up leaving the company and even if that employee goes to work for a direct competitor.
To protect the privacy and safety of patients
Protecting the privacy of patients is another reason for signing a non-disclosure agreement and mainly arises in the healthcare field. These NDAs say that a doctor or nurse must not reveal certain health information pertaining to a patient to any third party. This helps ensure that people receiving healthcare are honest with their providers and give them their full medical history without fear of repercussions from, for example, an abusive spouse who might call the medical facility and try to get their protected information. HIPAA is the primary non-disclosure form used in the medical field.
When businesses know how to use different types of NDAs, they can better select the one that is right for them in a particular situation.