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How a nondisclosure violation could impact your design company

Protecting private company information is often critical to the financial success of a business, especially for companies in creative fields. As an architectural or design firm, your company deals with a lot of proprietary information. 

Clients may provide you with private documents or personal information in order to make the most of your services. Your company may have proprietary design styles or unique construction practices that competitors might pay a premium for. Even your client list itself could be something worth substantial value. 

Requesting that your employees and contractors sign a non-disclosure agreement (NDA) in order to protect your company secrets is a common strategy. Unfortunately, if someone violates that agreement, you may have to take legal action or run the risk of their actions damaging your business.

NDA violations can hurt your reputation and your bottom line

If an employee leaks, steals or sells your client list, someone from a different business or your former employee might start reaching out to the people or businesses on that list to solicit them. Your clients will likely not appreciate that invasion of their privacy and could connect it with your company. 

If an employee or contractor discloses proprietary design or building practices to another party, a different company could poorly replicate what your company does, leading people to assume that a poorly-designed building was something your firm produced. 

Finally, the disclosure of private business information could affect the company’s bottom line by impacting how competitive and cost-effective it can be. The more competitors know about your inner workings, the easier it will be for them to manipulate the market or potential clients for their benefit, which will be your company’s loss. 

If you’re dealing with a nondisclosure agreement violation, find out how an experienced advocate can help you.