It is also important to make sure any information, written or transmitted in any fashion, such as photos or verbal, is labeled “Confidential” and documented.

It is also important to be diligent about requesting the return of any confidential information and materials after the need to have the materials has passed, or the relationship has terminated. Keeping records and control of information in a timely way is essential for handling these materials properly.

Be sure to keep your NDAs current with any parties with which you maintain ongoing relationships. Keep a file for NDAs, as well as records of correspondence, such as emails and presentations, and keep track of the expiration date of the NDAs, especially if you maintain several NDAs with a number of parties. Here an old Chinese proverb applies: “the faintest ink is better than the strongest memory.”

NDAs are contracts, and usually understandings between two ethical parties. Before you rely entirely on an NDA to protect confidential information, check the references and reputation of people with which you intend to have business relationships. Snakes in the grass don’t respect agreements, no matter how well crafted they are, and may misappropriate your confidential information to do their own patent filings. If you get the feeling you are dealing with someone that makes you want to count your fingers after you shake their hand, perhaps you should just avoid getting involved with them.

The assistance of Cecily O’Regan Esq. of Greenberg, Traurig LLP, E. Palo Alto, CA, and Paul Backofen, Esq. of Crockett and Crockett LLP, Laguna Hills, CA, in preparing this article is gratefully acknowledged.