A product development non-disclosure agreement is a legal document aimed at protecting the proprietary information of an inventor shared with a third party during a new product development process. All product information should be detailed in the NDA, and if a third party were to share the information, they would be liable for damages.
You may use a non-disclosure agreement if you are at any stage of product development and need to share information about the product, such as technical specifications, market studies, evaluations of competitors, cost analysis, and testing results with another party.
When your product is fully developed, qualifies as an invention, or is awaiting a patent, use a Patent (Invention) NDA.
What Is New Product Development?
New Product Development (NPD) encompasses the comprehensive procedure of introducing a novel product to the market. This process covers creating a completely new product, enhancing an existing one to maintain its appeal and competitiveness, or introducing a previously established product to a fresh market.
Stages of Product Development
A product development plan guides a business’s systematic approach to product development, with milestones and checkpoints to keep the team aligned until launch. Some of the steps in the plan include:
- Idea conception
- Concept testing and development
- Business analysis
- Marketing analysis
- Prototype and product testing
- Marketing testing
- Product launch
How to Write
Step 2 – Enter the name of the parties and the date of the agreement.
Step 3 – Specify the duration in which the Receiving Party will hold the confidentiality of the information.
Step 4 – Specify if all shared information will be considered confidential or only specific parts of it.
Step 5 – Enter the governing state.
Step 6 – Finalize the agreement by ensuring the signature of both the Disclosing and Receiving Parties to activate its binding effect.