Product management glosary

Non-Disclosure Agreement (NDA)

What is Non-Disclosure Agreement (NDA)?

Non-Disclosure Agreement (NDA) is a legal contract between two or more parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but do not want to be made available to others. The NDA is also known as a confidentiality agreement (CA), confidential disclosure agreement (CDA), proprietary information agreement (PIA), or secrecy agreement (SA).

Why is NDA important in product management?

NDA is important in product management because it helps to protect the intellectual property and confidential information of the company. Product managers are responsible for developing and launching new products, which often involve sensitive information such as trade secrets, customer data, and financial information. NDA ensures that this information is kept confidential and is not disclosed to unauthorized parties.

What are the key elements of NDA?

The key elements of NDA include:

  • Identification of the parties involved
  • Definition of the confidential information
  • Purpose of the disclosure
  • Duration of the agreement
  • Obligations of the parties
  • Exclusions from confidentiality
  • Remedies for breach of the agreement

What are the types of NDA?

There are two types of NDA:

  • Unilateral NDA: This is a one-way agreement where only one party discloses confidential information to the other party.
  • Mutual NDA: This is a two-way agreement where both parties disclose confidential information to each other.

How to create an NDA?

To create an NDA, follow these steps:

  1. Identify the parties involved and their roles.
  2. Define the confidential information that will be disclosed.
  3. Specify the purpose of the disclosure.
  4. Determine the duration of the agreement.
  5. Outline the obligations of the parties.
  6. Include any exclusions from confidentiality.
  7. Specify the remedies for breach of the agreement.
  8. Review and sign the agreement.


NDA is an essential legal document in product management that helps to protect the confidential information of the company. It is important for product managers to understand the key elements of NDA and how to create one to ensure that their company's intellectual property is safeguarded.