Why NDAs are important for Mobile App Development Companies?

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It’s been quite a while since the advent of very first mobile app. Yet the prospects as well as ideas to get the most innovative app still excites users. This accounts for abundant mobile apps in the leading mobile app stores , supported by irresistible amount of apps downloaded every year. Although you cannot overlook the fact that mobile app industry holds considerable potential. There are innumerable startups as well as established mobile app development companies that are tapping to demonstrate their potentiality. They want to vent authentic apps with the best features and functionalities and observe phenomenal success.

But protecting intellectual property is the most common practice as far as software sector is concerned. But in case of mobile app development, the scenario is bit distinct. It is the app idea which is important rather than the code. This case is further earnest while hiring a mobile application development company for any outsourcing need, it is quite indispensable to protect the mobile app idea. Although this is a prime concern for any mobile app development company is to safeguard the valuable information i.e. to keep the essential information concealed from their major competitors, particularly in those cases when Non-Disclosure Agreement plays a very important role.

What is NDA?

Mobile app idea must be protected while revealing it to others which can be achieved simply with the help of NDA i.e. Non-disclosure Agreement which ensures that all the information that is shared must be help confidential between the appreneur and mobile app developer. It primarily protects the idea from being shared or reused by those who are actively involved with the project. NDA offers protection irrespective whether it’s contractors or outsourced contractors, potential investors or clients.

But NDA is sometime ridiculed, especially for those who have “ideas” that they are arguable most significant when there is concrete confidential information.  Although many but not all have their app idea exclusively in their head. Their investment plan, wireframes, designs or investor’s deck do not exceed more than 2-3 sentences.

Why mobile app idea needs to be safeguarded?

Safeguard Confidentiality: First and foremost, a non-disclosure agreement template for mobile app development assures a protection of the right under development as well as all the intellectual property linked with the product as well and its development process. According to Non-Disclosure Agreement, any project’s dissemination of information is qualified a crime under the category of “the disclosure of trade secrets”. Thus, if the competitor releases a product which is quite similar to the one that you developed can prove rights to this intellectual property, may be due to the leakage of confidential information. So, it can be advantageous in your part and disadvantageous on the competitor’s to launch a product based upon your idea.  

Why mobile app idea needs to be safeguarded?

Eliminating possibility of unauthorised usage of intellectual property: Apart from safeguarding the confidentiality of the idea, eliminating the possibility of unauthorised usage of intellectual property after the accomplishment of project is also essential. In the event of contract breach NDA ensures that hired company will no longer be able to continue the development of product independently or the use the idea which is fundamental to the project.

Enumerating the benefits of Non-Disclosure Agreement:

  • Keeping the idea of project intact
  • In the event of leakage, the rights can be retained to the project as well as the idea of the application.
  • With the participation of third party, rights of the applications under development can be retained after the release.
  • It protects the right while the third-party contract termination.

Favourable scenario to sign Non-Disclosure Agreement?

In case you are dealing with an established company, a well-known brand or a start-up that raised funds or an organisation that can be easily compared with, are some scenarios which generate less concern to sign an NDA agreement.  But there are few members within the organisation where the chances of getting the idea compromised is quite high:

Own Staff: Signing of NDA by all staff involved while working on a new project is quite compulsory and considered to be the necessary precaution. As far as large companies are concerned, one of the conditions of Non-Disclosure Agreement is not restricted to non-disclosure of the outside but also non-proliferation of information among the employees who are not actively taking part in the development.

Favourable scenario to sign Non-Disclosure Agreement

Sponsors and Investors: People who invest resources in your application must be aware of all the details of the product undergoing development as well as receiving regular information on the progress of the product. But the same people can endanger the project’s future by circularising the information may be unintentionally about the basic idea or application. Hence the signing of NDA is an assurance for its information preservation.

Hired mobile app developers: NDA signing is quite essential while dealing with the outsourcing company. Although most of the renowned outsourcing mobile app development company possesses a typical sample of NDA specifically for intellectual property.

When NDA can prove to be an obstacle?

Although excessive secrecy can be an obstacle and slow down the pace of development. Following are some of the stages when signing NDA can prove to be an obstacle:

At the stage of fundraising

Revealing the fundamental idea to investors and sponsors can be somewhat risky but quite difficult to win over other parties that can be discussed after signing agreements. So it looks to maintain the balance with the mutual discussions concerning the general discussion as far as usage and technologies are concerned, but simultaneously the main features must not be disclosed.    

Hiring stage of the mobile app developer

While hiring iOS app developers or Android app developers, a portion of the process must be informed which is although quite difficult without disclosing some part of the mobile app development. Although the best way is to discuss the linear perspective and problems that spring up during the mobile app development. It has to be concealed until the app developer start getting their hands into the development.  

Important things to consider in NDA

Signing an NDA is not an ultimate solution

Important things to consider in NDA

Although if you are thinking that signing an agreement and the purpose of app security is solved , then the scenario is not yet clear to you. First you must read and understand the clause very carefully, whilst development company can safeguard the idea but what would happen if other company has asked to develop an app with similar idea. Although there is no specific rule that the mobile app development companies are not supposed to take projects from different company with similar idea. So, the thing which is entirely based upon is the trust that you can put on the company and their developers. Although, Fluper is an ethical mobile app development company that assures its clients to deliver the most authentic and reliable service in order to build good reputation and maintain long –term relationship.

Look for both sided NDA

Aforesaid I discussed, with whom signing an NDA is favourable so it is a matter of mutual understanding while considering the mobile app development. Hence when you are dealing with reputed brand, then it becomes a less concern to sign an NDA. The ultimate thing which must be ensured that all terms must be reasonable enough to mitigate unfair provisions.   

But making an NDA one-sided provides no assurance of information. An NDA must be prepared which must be both sided, a customer side and developer side. It is quite essential to take signature from all the members in order to alleviate the chances of getting information compromised.

Concluding note

Although NDA is an agreement that provides intellectual property as well as protection for confidential information. Hence these provisions do really make some sense while proceeding to perform the actual work.

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