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Is it useful to enter into a confidentiality agreement?

Every so often in this blog I touch on the subject of confidentiality constraints, or of actual written and signed non-disclosure agreements, by which the signatory parties decide not to disclose the information contained in certain documents.
I discuss this subject often because, as you know, most of the projects that MICROingranaggi undertakes are covered by these constraints. And we, of course, maintain strict confidentiality in relation to them.

But is it really useful to enter into a confidentiality agreement?

From the point of view of a company that needs to maintain confidentiality on a project, it is undoubtedly useful. Also because it involves products that have yet to be patented and, if the information relating to them is disclosed, the relevant administration cannot be started.

But all things considered, signing a confidentiality agreement can be beneficial for those sitting on the other side of the table but unfortunately it often happens that certain information can be leaked anyway. Now, as producers know that this can happen in all sectors where confidentiality is essential (such as in the aerospace and defence industries), they end up protecting themselves by going far beyond those agreements.

It is not rare in fact to encounter entities who commission the various components of the same project to several suppliers so that none of them can “re-form” the complete project. In general, however, this is only feasible when only production is involved because if that same component as well as being produced must also be designed by an external entity, then other factors come into play. It changes because the peripheral information will also become essential and therefore – in most cases – it will be necessary to be able to access the entire project.
The sectors such as defence and aerospace typically design everything in-house but this does not happen in other areas that in any case require the utmost confidentiality.

And this is precisely one of the reasons why, in my opinion, it is useful to sign such contracts.
Let me explain what I mean. As I have written many times in this blog, a design firm external to a company, before issuing a quotation must have all the project specifications but all too often customers communicate to us only the bare minimum, even at times omitting essential information. And one of the main reasons for this behaviour stems from the fear of divulging confidential information.

Signing a confidentiality constraint, in most cases, results in customers being more open, providing us with all the information we need to do our work.

What is your opinion on the matter? To what extent do you think it could be useful to enter into or sign a confidentiality agreement? Do you think there could be related drawbacks?

By Stefano Garavaglia

È il CEO di MICROingranaggi, nonché l'anima dell'azienda.
Per Stefano un imprenditore deve avere le tre C: Cuore, Cervello, Costanza.
Cuore inteso come passione per quello che fa, istinto e rispetto per il prossimo. Cervello inteso come visione, come capacità a non farsi influenzare da situazioni negative. Costanza perché un imprenditore non deve mai mollare.

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