Table of Content
- What is a Non-Disclosure Agreement?
- Key Features & Components of a Non-Disclosure Agreement
- When do you Need a Non-Disclosure Agreement for White Label Services?
- FAQs Related to Non Disclosure Agreement for White Labeled Services
Although relatively new, white label services are quite revolutionary. It’s the best way to provide a service to a client even if you don’t have adequate skills and resources for it.
Let’s say your client wants a brand-new website, but don’t know how to use WordPress or any other CMS. In that case, a white label web development company would be of help. This company will create a high-quality website with the help of the latest technical and design features with respect to your client’s requirements. But the best part is they’ll provide these services under your company’s branding.
However, like any other service, there are some risks associated with it, and a frequent one is a security breach and data leaks. So what do you do? Well, the best way to get around that is an NDA or Non-Disclosure Agreement. Although it’s a common term in legal circles, most get confused by it.
But don’t worry. We’ve created this blog for that exact reason. So without further ado, let’s start.
What is a Non-Disclosure Agreement?
A Non-Disclosure Agreement (NDA) is a legally binding contract used to protect sensitive and confidential information shared between parties. In business, parties often share confidential information for a specific purpose. They use these confidentiality agreements to ensure the info remains protected and undisclosed to third parties or unauthorized individuals. These agreements safeguard sensitive data and maintain trust between the parties involved.
Let’s put this in perspective with a white label agency. Imagine you have a high-value client and they have put their trust in your company for creating a high-quality website. But you don’t have the skills and expertise for creating and launching a WordPress website. In that case, one of the best ways forward is consulting and hiring a white label WordPress development company.
Now, to create the best website, you’ll have to provide the white label agency with accurate (and probably sensitive) client info and their customer data. That means an inherent risk of security breach and data leaks. But you’ll be pleased to know there is a way out of this issue, and it’s called a non-disclosure agreement.
The NDA sets clear boundaries on what constitutes confidential information. It defines the types of information that need protection, such as trade secrets, financial data, intellectual property, customer lists, marketing strategies, or any other sensitive data that should not be made public.
When two or more parties enter into an NDA, they are bound by a legal document. They agree that any confidential info shared during their interaction will remain strictly confidential. The party disclosing the information is known as the “Disclosing Party” and the one that receives it is called the “Receiving Party”.
The latter takes on the responsibility of safeguarding the disclosed sensitive info. That means they must not reveal, share, or use the confidential data for any purposes beyond what is explicitly permitted in the agreement. The permitted use of the info is typically restricted to specific business-related activities, which the disclosing party deems necessary.
The NDA also sets a duration for which the confidentiality obligations remain in effect. It can be a few days to years or even extend indefinitely, especially if it protects trade secrets or intellectual property.
If you are entering into a partnership with any white label agency, be it for web development services or otherwise, we recommend you sign an NDA. It will help foster trust and security in the business dealing. But make sure you carefully review and understand its terms to ensure that their confidential information is adequately protected. You may even choose to seek legal advice for additional clarity and peace of mind.
Now, although you know what an NDA is, there may still be a confusion about what’s included in this legal document. That’s what we’ll discuss in the next section.
Key Features & Components of a Non-Disclosure Agreement
When creating a Non-disclosure Agreement (NDA) with a White Label Agency, certain key features should be included to ensure the protection of sensitive information and the smooth functioning of the white label arrangement. Below are the essential elements to consider:
Definition of Confidential Info: Clearly define what information is considered confidential. That should include all proprietary data, trade secrets, intellectual property, business strategies, and much more. Plus, you can include any other sensitive information related to the white label service.
Scope of the NDA: Specify the purpose and scope of the NDA. Outline that it applies to all discussions, interactions, and materials exchanged between the parties in the context of the white label services.
Obligations of the White Label Agency: Here’s where the legality starts. Clearly state the responsibilities and obligations of the White Label Agency regarding the handling of confidential information. This includes ensuring that the agency maintains strict confidentiality, refrains from disclosing the information to third parties, and takes appropriate security measures to protect the data.
Permitted Uses of Information: Define the permissible uses of the confidential information in the non-disclosure agreement for the white label agency. The agency should only be allowed to use the info for the purpose of providing the white label service as agreed upon in the contract.
Duration of Confidentiality: Specify the duration for which the NDA (non-disclosure agreement) will remain in effect. It can be for the duration of the white label agreement or extend beyond the termination of the contract to protect long-term interests.
Non-compete Clause: Depending on the nature of the white label service, consider including a non-compete clause that prevents the agency from engaging in similar businesses or offering competing white label services during or after the contract period.
Return or Destruction of Information: Establish a process for the return or destruction of confidential information once the white label arrangement ends or when it is no longer needed for the agreed-upon purposes.
Exclusions & Exceptions: Outline any exclusions or exceptions to the confidentiality obligations. This may include information that is already in the public domain, information developed independently by the White Label Agency, or information disclosed in compliance with legal requirements.
Consequences of Breach: Clearly state the consequences of breaching the NDA. This may involve legal remedies, such as damages, injunctive relief, or the right to seek specific performance.
Governing Law & Jurisdiction: Specify the governing law and the jurisdiction where any disputes related to the NDA will be resolved.
Severability: Include a severability clause stating that if any part of the NDA is found to be unenforceable, the rest of the agreement remains valid and enforceable.
Signing & Execution: Ensure that the NDA is signed by authorized representatives of both parties to make it legally binding.
It is essential to draft the Non Disclosure Agreement for white labeled services carefully, considering the unique aspects of the white label arrangement and the specific confidential information involved. Seeking legal counsel to review the agreement can provide additional assurance that the NDA adequately protects the interests of both parties.
When do You Need a Non Disclosure Agreement for White Labeled Services?
As we discussed earlier, an NDA can be helpful every time one party needs to share sensitive information with another party and wants it to remain confidential and protected. Bound by NDA, the receiving party won’t disclose the info to any unauthorized entities.
Now, since we’re talking about the white label partnerships, here are a few common scenarios, this legal document will be a helpful necessity in this hiring model:
One of the significant uses of a Non Disclosure Agreement for white labeled services comes forth during business negotiations. Let’s say you are entering into a partnership with a white label digital marketing agency to promote your client. Then you may sign an NDA with the agency to safeguard sensitive financial data, proprietary technology, customer lists, and other confidential information shared during the talks. Moreover, it will help ensure the agency won’t share the critical data outside of the marketing strategy.
Intellectual Property Protection
Another crucial application of the Non Disclosure Agreement for white labeled services is intellectual property protection. In fact, it’s one of the ways you can bring the Intellectual Property Law into effect. Innovative ideas, inventions, or creative works, such as software code, designs, or patents are often an intellectual property. So an NDA can help prevent others from using or reproducing these intellectual assets without permission.
For example, if you have provided the hired white label WordPress development agency with proprietary product info for the eCommerce website, you can sign an NDA to ensure it isn’t used anywhere else.
Let’s say you have hired a white label service provider for a website. Then that website will be a type of product that needs to be protected from external entities. So you may ask the agency to sign an NDA to ensure the website isn’t accessible to the public before the development is completed. And even after that the agency will need to maintain confidentiality regarding the project’s specifications, prototypes, and any other proprietary info.
Sometimes a company is well-established with a variety of clients on board. To create high-quality websites for these clients, a white label agency would be of help. Then you will need the agency to sign an NDA. With a non-disclosure agreement, you can ensure the sensitive information about your clients will remain confidential throughout the process. So your clients will be satisfied with the website without the risk of data leaks from the white label agency.
The need for an NDA arises whenever there is a potential risk of sensitive information being misused or becoming public knowledge. By signing an NDA, parties can establish legal protection and trust in their business relationships. That makes it easier to share confidential information and work together without fear of unauthorized disclosures.
FAQs Related to Non Disclosure Agreement for White Labeled Services
White label agencies can be excellent as they let you offer different types of services to your clients. But it’s understandable to have a risk of security breaches and data leaks. But don’t worry. You can easily evade these risks through a non-disclosure agreement.
This legal confidentiality agreement restricts the receiving party from disclosing the contents to unauthorized entities. So if you have hired a white label WordPress company for a client website, make sure to sign an NDA to maintain. That way you will be rest assured there will be no data leaks from the white label agency.
When it comes to white label services, you won’t have any confidentiality issues with WPWeb Infotech, thanks to a robust non-disclosure agreement. So contact our experts for white label services today!