Non-Disclosure Agreement

Description

• A Non-Disclosure Agreement (NDA) is a legally binding contract that ensures confidentiality between two or more parties, restricting the disclosure or use of sensitive information shared during business dealings, partnerships, or collaborations. It protects trade secrets, proprietary data, and other confidential information.

GOV Department

• (Depends on the industry, e.g., Ministry of Domestic Trade and Consumer Affairs (KPDN) or regulatory bodies such as Suruhanjaya Syarikat Malaysia (SSM) for business compliance.)

License Name (Malay)

• Perjanjian Larangan Pendedahan Maklumat

Details

• Clearly defines what constitutes confidential information.
• Specifies the obligations of the parties to maintain confidentiality.
• Outlines the permitted uses of the information and restrictions on disclosure.
• Includes the duration of confidentiality, even after the relationship ends.
• Protects intellectual property, trade secrets, business strategies, and sensitive data.

Important Rules

• Both parties must agree on the terms and sign the NDA for it to be enforceable.
• The agreement must clearly define the scope of confidential information and its use.
• Any breach of confidentiality must be subject to specified legal remedies.
• Parties must comply with applicable Malaysian laws, such as the Personal Data Protection Act 2010 (PDPA) or the Copyright Act 1987.
• The NDA should not contravene public policy or the rights of third parties.

Compound & Punishment

• Breach of an NDA may result in:
  • Legal action for damages or compensation for losses incurred.
  • Injunctions to prevent further unauthorized use or disclosure.
• Unauthorized disclosure of intellectual property or trade secrets can lead to penalties under relevant laws, such as:
  • Fines up to RM500,000 or imprisonment for serious offenses.
• Non-compliance with the PDPA may also attract regulatory penalties.

Advisor