Serving Rockland & Westchester Counties, New York City & Northern New Jersey

NDAs: What They Protect, What They Hide, and When to Push Back

The NDA has become a handshake: sign it so the real conversation can start. That casualness is exactly why it’s worth two minutes of suspicion, because “standard NDA” is where non-standard obligations go to hide.

What an NDA should do

Define what’s confidential, limit how it can be used, and say when the obligations end. A clean mutual NDA for exploratory talks can genuinely be a one-page document.

What to look for before you sign

One-way obligations. If only your information flows, fine. If you’ll both share, the agreement should be mutual.

Embedded non-solicits and non-competes. Restrictions on hiring, customers, or competing have no business in a confidentiality agreement. In New York, an employee anti-competitive agreement “will be carefully scrutinized by the courts,” and the Court of Appeals has “strictly applied the rule to limit enforcement of broad restraints on competition” (BDO Seidman v. Hirshberg, 93 N.Y.2d 382, 388, 389 (1999)). Push back.

IP assignment language. “All ideas disclosed in discussions become the property of…” can quietly transfer rights to concepts you brought into the room.

No residuals or knowledge carve-out. You cannot unlearn what you learn. Without standard carve-outs (information already known, independently developed, or publicly available), an NDA can theoretically taint your future work.

Perpetual terms. Confidentiality for trade secrets can reasonably run long; a blanket forever obligation on all “business information” is overreach.

The asymmetry problem

The party that drafted the NDA knows what’s in it. A quick flat-fee review evens the table and costs less than one hour of the dispute you’d otherwise risk. Send it over before you sign; the consultation is free.

Related services: Business & Commercial Contracts

Attorney Advertising. This post is for general informational purposes only and does not constitute legal advice.

Eugene Bondar, Esq.

About the author

Eugene Bondar, Esq.

Founder and principal attorney of Bondar Legal P.C. in New City, NY. Eugene spent nearly four years as Principal Assistant County Attorney for Rockland County and served as Associate General Counsel to the Gateway Development Commission. Admitted in New York and New Jersey, and before the U.S. District Courts for the Southern and Eastern Districts of New York and the District of New Jersey.

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