Supplier NDA for the United States

Supplier NDA Template for United States

A Supplier NDA is a legally binding agreement used in the United States to protect confidential information shared between a company and its suppliers. This document establishes mutual obligations for maintaining confidentiality of sensitive business information, trade secrets, and proprietary data shared during the course of the business relationship. It includes specific provisions for handling, storing, and returning confidential information, as well as remedies for breach of confidentiality obligations under U.S. federal and state laws.

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What is a Supplier NDA?

A Supplier NDA is essential when businesses need to share sensitive information with potential or existing suppliers while maintaining confidentiality. This document type is commonly used in the United States when companies need to protect proprietary information, trade secrets, or sensitive business data during supplier negotiations, onboarding, or ongoing relationships. The agreement typically includes specific provisions for information handling, security requirements, and breach remedies, all governed by U.S. federal and state laws. Organizations should implement a Supplier NDA before sharing any confidential information during supplier evaluation, contract negotiations, or operational collaboration.

What sections should be included in a Supplier NDA?

1. Parties: Identification of the disclosing and receiving parties, including full legal names and addresses

2. Background: Context of the relationship and purpose of sharing confidential information between supplier and company

3. Definitions: Key terms including Confidential Information, Trade Secrets, Representatives, Permitted Purpose

4. Confidentiality Obligations: Core obligations regarding use, protection, and non-disclosure of confidential information

5. Permitted Disclosures: Circumstances under which confidential information may be disclosed, including to representatives and legal requirements

6. Protection Measures: Security measures required to protect confidential information

7. Term and Termination: Duration of the agreement and circumstances for termination

8. Return or Destruction: Requirements for returning or destroying confidential information upon termination

9. Remedies: Legal remedies available in case of breach, including injunctive relief

10. General Provisions: Standard legal provisions including governing law, jurisdiction, and entire agreement

What sections are optional to include in a Supplier NDA?

1. Non-Solicitation: Restrictions on hiring or soliciting employees or customers, used when protecting against poaching is a concern

2. Data Privacy Compliance: Specific obligations regarding personal data protection, required when personal data will be shared

3. Export Control: Compliance with export control regulations, needed when technical data subject to export controls may be shared

4. Intellectual Property Rights: Provisions clarifying ownership and rights in any IP that may be disclosed, used when IP is likely to be shared

5. Residual Knowledge: Provisions addressing use of general knowledge retained in memory, used in technology sector agreements

What schedules should be included in a Supplier NDA?

1. Schedule 1 - Description of Confidential Information: Detailed list or categories of confidential information covered by the agreement

2. Schedule 2 - Authorized Representatives: List of individuals or roles authorized to receive and handle confidential information

3. Schedule 3 - Security Requirements: Specific security protocols and standards for handling confidential information

4. Schedule 4 - Approved Subcontractors: List of pre-approved subcontractors who may receive confidential information if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Industries

Federal Trade Secrets Laws: Key federal legislation including the Defend Trade Secrets Act (DTSA) of 2016 and Economic Espionage Act of 1996, which provide federal protection for trade secrets and remedies for misappropriation

State Trade Secret Laws: State-specific implementations of the Uniform Trade Secrets Act (UTSA) and variations in trade secret protection across different states

Contract Law: State-specific contract laws governing formation, enforceability, consideration requirements, and duration/termination provisions

Employment Law: State-specific restrictions on non-compete agreements, employee mobility rights, and independent contractor classifications that may affect the NDA's scope

Intellectual Property Laws: Federal patent laws, copyright laws, and trademark protection that may intersect with confidentiality obligations

Industry-Specific Regulations: Specialized regulations for sectors like healthcare (HIPAA), financial services (Gramm-Leach-Bliley Act), technology export controls, and defense contracting

Data Privacy Laws: State-specific data privacy laws, industry-specific privacy requirements, and international privacy laws like GDPR if applicable

Statute of Limitations: State-specific time limits for breach of contract claims and trade secret misappropriation claims that affect enforcement periods

Remedies and Enforcement: Legal provisions regarding injunctive relief, damages calculations, and attorney fees that should be addressed in the NDA

Constitutional Considerations: First Amendment limitations and public policy exceptions that may affect the enforceability of certain NDA provisions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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