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The birds are singing, the weather is bright and cheerful, and the only thing that could improve this day is reading and signing a lengthy legal document 📃🖊️
Perusing a Mutual NDA (Mutual Non-Disclosure Agreement) isn’t first on anyone’s hobby list, but it shouldn’t cause a headache.
Over the years, Strouse has successfully written and pursued thousands of mutual NDAs. To help you understand what a mutual NDA is and how it helps you, we’ll dive into the most common questions.
Although they’re not the most complicated legal documents, it can still be a hassle to receive a mutual NDA in your inbox. That’s why we’ve put together a guide to explain why we need a mutual NDA.
What is a Mutual NDA?
Mutual NDAs legally protect both parties from sharing information about one another.
Let’s say you have a one-of-a-kind idea to share with a converter. The mutual NDA can function as a design NDA that prevents the converter from recreating your vision (or product) for themselves. Hopefully, they don’t intend to try, but it’s always safer to have the initial agreement in writing.
MUTUAL NDA vs. ONE-SIDED NDA
So, why not use a one-sided NDA? In short, it’s safer for you and your converter to use mutual NDAs to avoid future issues.
We will do everything we can to help you find a solution, from building samples to developing unique manufacturing processes. However, before we explain our methods, we need a guarantee that you won’t go telling our competitors our trade secrets, and the mutual type serves as a manufacturing NDA to ensure this.
If you already have a standard NDA, we’ll be more than happy to review it, but it may take a few additional days.
Information Within a Mutual NDA
A mutual NDA defines what constitutes confidential information for the term of the initial agreement. It sets limits on how each party may use the other’s confidential information, specifies what information is not confidential, and outlines the consequences of violating the agreement.
In addition, there’s a term for every agreement that defines how long confidential information can be shared and how long it is protected. We’ll discuss standard lengths and protections in the next section.
A mutual NDA also includes many boilerplate clauses that are standard for any type of agreement. Examples include severability of clauses, venue, the process for amending the agreement, and the definition of specific terms used in the agreement.
How Long Does a Mutual NDA Last?
Most mutual NDA agreements last 2 to 5 years, but there is often an additional period during which the confidential information remains protected. This is usually called the “termination period.”
Unfortunately, it’s challenging to predict the exact length of a mutual NDA, as it depends on the agreement in place. At the start of your project, you’ll abide by a term of agreement that decides how long the NDA will allow you and your converter to continue sharing confidential information.
How Long Does it Take to Get a Mutual NDA in Place?
If you sign our mutual NDA, we can likely have it in place the same day. In certain cases, our clients prefer their own mutual NDA, so don’t hesitate to suggest one or ask if you have any questions about ours. In this scenario, it may take a week or more to get the agreement in place because it requires us to do a legal review and potentially suggest changes.
Your converter’s signature won’t be on the document when you receive a mutual NDA. This lack of signature is because it’s customary for us to reread the document before signing. It also allows you the opportunity to suggest changes to the document if required.
What’s The Next Step After Signing a Mutual NDA?
Signing the mutual NDA is typically one of the first steps of working with a converter because it guarantees the confidentiality of your part design and their processes.
HAVING A DISCOVERY MEETING
Once you’ve signed Strouse’s mutual NDA, we will call to review your product's details and discuss the project's feasibility. This call, the Discovery Meeting, will involve the disclosure of part drawings, consideration of different materials, and more.
DEVELOPING A SOLUTION
After Strouse’s initial call, we enter solution development, focusing on your part specifications, tolerances, materials, and the ultimate problem you are trying to solve. We want to ensure the part we produce will be an effective solution for your company. This phase may also include a die cut trial to test design and material adaptability for full-scale production.
DETERMINING A PROJECT QUOTE
Last but certainly not least, you’ll receive a quote proposal, and the decision to follow through will be in your hands. In the lead-up to that point, we will demonstrate our commitment to manufacturing functional, high-quality products.
Hopefully, you’re not asleep at the keyboard after reading this explanation of a legal document, but as always, please contact us with any questions.
Originally published: January 18, 2023
