NDA stands for non-disclosure agreement and is quite a humdrum affair when it comes to software sector but with app development, it is quite divergent. It’s a long time back when the first mobile app idea was invented but still, an advent of new app idea brings a new breeze in the users. The list of startups and even established app developers strive hard to showcase their new ideas in the market. However, app idea is something which is more important than the coding part. Before you console with anyone about the app idea encircling your mind, you will come up with the dreaded words, “Send NDA first”. Let’s introduce you to the concept.
What is NDA?
NDA is an agreement wherein all the parties involved with app development will be under the obligation to maintain the confidentiality decorum of the information despite the fact what relations they carry or the circumstances prevails, the information will not be leaked anywhere. For sundry mobile app development agency, NDA is scrap concept as the app idea have no virtual reality. The idea is just in the imagination, lacking the post planning of its execution. The idea is just 4 to 5 sentences long lacking the wireframes, designing, investment and all another segment coherent for the app execution. Now you know what is NDA but how can it benefit your company and app? Let’s explore it.
Pros Of NDA
1)Securing the app idea and keeping it confidential.
2)Holding the rights of the app pre and post the app development procedure of the third party.
3)Right to cause of action against the parties in case of leaks of information.
4)Retrieving the right of the app in the circumstances of third party contract termination.
5)Forbid unauthorized usage of the app by the associates of the app development team.
Well, pros side will lure you to enter into NDA but before you make your move forward, weigh its cons equally. Excessive secrecy can cut down the development speed and can have an adverse effect, let’s check these out.
Cons of NDA
1) Developers drafting level
While enlisting developers, they should be confronted with the idea and functioning of the same along with the scope of work. NDA will restrict the full-fledged disclosure of the same keeping the new techies, its application issues and its development unexplored.
2)Investment raising stage
Partaking any idea with the investors can be a colossal risk on the part of the startups but do they have any option? How can they finance their app without apps idea disclosure? Well, on a contrary putting money on something which will be acknowledged only after you put your signature on the NDA is also quite temerarious. The best possible outcome is to deliberate basic guidelines of the idea, its use and tech used and disclose the main features after signing NDA.
Parties to sign non-disclosure agreement
Signing NDA by the workforce works two ways, internally and externally. When there is a new task, cyclopean companies have the policy to make their entire workforce sign the NDA. It’s a precautionary measure wherein there is a prohibition on leakage of information to the outside parties along with discussing it with the internal members who are not an active part of the development process.
Investors are those who are majorly affected by the project and are an integral part of your app project liable to know every tit bits of the app and they are must to be signed the NDA list.
App development is outsourced, the third party has access to app development process who cannot be trusted blindly with sensitive information. They should be bound by the NDA at the designing and development stage along with after app release time period.
4) App testers
Mobile app development services cannot succeed without testing and testing is the end part of an app where there is nothing left to be concealed but there is an entire bunch of array to be leaked, hence testers are also in the league of signing NDA.