Essay Sample on Nondisclosure Agreements: Benefits for Food, Tech & Biotech Industries

The industries that benefit most from using nondisclosure agreements include food and beverage industries, technology and software industries, and modern biotechnology industries. These industries benefit the most from nondisclosure agreements because it gives them a competitive advantage. Besides the deal ensures that all sensitive information about the companies remains its secret. The nondisclosure agreement is always applicable in these industries when they disclose the information to potential investors, creditors, clients, and even suppliers.

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Food and beverage industries benefit from nondisclosure agreements by keeping their recipe and manufacturing processes secret (Epstein, & Levi, 1987). Employees of a food and beverage industry have access to the contents of the products they manufacture. Therefore, at the beginning of their contract, these industries must ensure that they sign an agreement with the employees to ensure that after the contract has come to term, they do not give the confidential information to other companies manufacturing similar products. The food and beverage industry is very competitive, and for an organization to remain in the business, it must keep its manufacturing process a secret to maintain its uniqueness (Epstein, & Levi, 1987). Besides, when employees are laid from one Food Company, the next company that employs them cannot get any disclosure because doing so would lead to a legal battle which requires the disclosing party to pay for monetary damages.

The other industry that would benefit from nondisclosure agreements is the technology and software industry. Sharing of information and reliance on business relationships with outsiders is characteristic of the tech industry (Babar, Verner, & Nguyen, 2007). Besides, the potential for technological ideas in software development is very high and can be very expensive. Thus, a nondisclosure agreement is fundamental to determine the obligations of each party and the limits to which an idea would be used. The technology and software industry use the deal as a means to protect their development ideas.

Lastly, nondisclosure agreements are beneficial to biotechnology industries (Gans, & Stern, 2002). These industries include pharmaceutical, agrochemical, and genetic engineering companies. These industries have a lot of trade secrets and manufacturing processes. Besides, there are numerous research studies and inventions in these fields. Thus, disclosure of the discoveries made in the biotechnology industries is controlled by the agreements.

References

Babar, M. A., Verner, J. M., & Nguyen, P. T. (2007). Establishing and maintaining trust in software outsourcing relationships: An empirical investigation. Journal of Systems and software, 80(9), 1438-1449.

Epstein, M. A., & Levi, S. D. (1987). Protecting Trade Secret Information: A Plan for Proactice Strategy. Bus. Law. 43, 887.

Gans, J., & Stern, S. (2002). Managing ideas: Commercialization strategies for biotechnology. Melbourne Business School, University of Melbourne.