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Why Does Every Mobile App Development Process Include NDA?

Why Does Every Mobile App Development Process Include NDA?

App development is a field where if you come up with innovation you will reach the mountains of success. Well, the chances are many that when you share the idea with someone to know the practicality, they might steal it. The chance of your becoming a millionaire is gone and you can’t really do anything about it. I know that would be devastating. This is when NDA comes in.

NDA stands for a non-disclosure agreement. Without having this clause in the process, the clients would never share their idea with the company. So, the primary answer to your question, let me help you know NDA in detail and how does it work to protect the idea.

What is NDA?

NDA is a contractual agreement involving both the parties of the app development, the client and the mobile app development company to protect the app idea and under any circumstances, the idea should not be leaked to any of the third party. Now, you know the basic definition, let’s dig it a little deeper.

Clauses Included in an NDA

1) NDA Timeline

Well, an idea can’t be kept confidential for the lifetime. The first clause is all about the timeframe for which the idea has to keep safe and undisclosed. Basically, the time revolves from the day of the idea sharing to the day from which the actual development initiates.

2) Data to be Secured

In this clause, the actual data is to be mentioned which has to be protected from getting leaked to any parties other than the one making this contract.

3) Responsibilities of the Parties

This clause of the NDA talks about the duties and responsibilities of the parties to make sure the idea remains safe and confidential. This is the section where the actions to be taken for safeguarding the idea are mentioned. This can cover things like the mode for communication, tools that can be used for development, and many more.

4) Infringement of the Contract

In general, if the party breaches the NDA contract, what should be done and how would be it be compensated are mentioned under this clause. Basically, the compensation would be in the monetary terms but there are people who like to keep the right of taking legal action for their compensation.

5) Retrieve the Information

This clause includes the return of the idea, information, or any bits or pieces of the project in case the deal doesn’t work out between the parties.

Classification of NDA

There are basically three types of non-disclosure agreement that app development agencies can use. Let’s see what is included in each of them and find the best fit for your company to offer to your clients.

1) Unilateral NDA

This NDA just has two parties: the first is the one sharing the information and another one is the receiving party. Here the receiving party is under the obligation to not to share this information with anyone.

2) Bilateral

In this NDA, the parties involved are under the obligation to not to reveal it to anyone other than each other.

3) Multilateral NDA

This type of NDA involves three parties or more than that. Here they are legally tangled to not to share even a teeny weeny bit of the information with the world.

Why do the clients ask for NDA from app development agencies?

Innovation is at par with the death. I mean are there really any ideas left which are not already converted into a potent app? Well, it’s rare yet even the client with the oldest idea ask for the NDA even before the introductory mail. Well, there are reasons and the strong ones behind it, let’s unveil them:

1) Mandatory Tradition

Well, someone started this trend and others followed and now everyone is following. Its kind of became mandatory in the service industry. It is a trend which never faded. The concept was introduced quite back in the days but there was a room for many innovations and safeguarding yours with NDA was kind of important for security. People feel safe now by following this trend and I guess there is nothing wrong in knowing that your not so secret is also safe.

2) Lack of Trust

Well, the number of app development agencies across the globe is numerous. The competition is very furious and each one is in the search of something that can help them shine out among others. There are higher chances, a small company might have a big idea which is not protected and big companies steal it and take the benefit out of it. The clients are somewhere compromised here and there is a lack of trust. This is also one of the major reasons why clients make a call for NDA to the companies.

Wrapping Up

Well, with the reasons above it can be concluded that NDA is an integral chunk of the app development process. If you are anywhere related to the IT industry and don’t have an NDA till date, learn the points and fetch yours ASAP.

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I am Pratik Kanada, founder & CEO of 360 Degree Technosoft, an iPhone and Android app development company which makes app ideas into reality by providing unique design and development services across the globe. To keep up with the trend, I have also laid steps into React native and ionic app development. I generally write blogs on mobile technology, app development, and app marketing.

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