In today’s highly competitive business environment, information is one of the most valuable assets a company can possess. From proprietary data to strategic plans, these elements often represent a significant competitive advantage. That’s why safeguarding confidential information is critical—and a well-structured Non-Disclosure Agreement (NDA) is one of the most effective legal tools to do so.
As a leading Indonesia IP consultant and IP law firm in Indonesia, we understand the importance of protecting your intellectual assets. Below are four essential tips for creating a strong NDA to protect your trade secrets.
1. Clearly Define Confidential Information
The first step in drafting an effective NDA is to clearly define what constitutes confidential information. According to Article 1 of Law No. 30 of 2000 on Trade Secrets, trade secrets refer to “information in the field of technology and/or business that is not known to the public, has economic value, and is maintained in secrecy by its owner.” Article 2 further elaborates this to include methods of production and processing.
Trade secrets go beyond documents—they also include data, software, business strategies, customer databases, algorithms, prototypes, and more. Be mindful of which types of information are most valuable within your specific industry.
2. Outline Obligations and Time Frame
A well-drafted NDA should specify the obligations of the receiving party to maintain confidentiality within a defined time frame. It must also outline how the information should be handled, including steps to prevent unauthorized access or disclosure. Examples include using encryption for digital files, securing physical storage, and limiting access to selected employees.
3. Include Consequences for Breach
An effective NDA must include clear and enforceable consequences in case of a breach. These could range from financial penalties to legal action. As per Article 17 of Indonesia’s Trade Secrets Law, any individual who unlawfully uses another party’s trade secret may face up to two years’ imprisonment and/or a fine of up to IDR 300 million.
For businesses dealing with high-stakes information, particularly in cases of copyright infringement in Indonesia, Indonesia trademark litigation, or patent protection, legal enforcement is essential.
4. Seek Legal Advice
While online NDA templates may offer a basic starting point, professional legal advice is strongly recommended to ensure your agreement is both comprehensive and enforceable. At Am Badar & Am Badar, a trusted patent law firm in Indonesia, we specialize in drafting NDAs tailored to your specific industry, company size, and the nature of the confidential information you wish to protect.
Whether you require assistance with Indonesia trademark registration, Indonesia patent search, Indonesia copyright law firm services, or representation from an experienced litigation lawyer in Jakarta, Indonesia, our team is here to support your intellectual property needs.
Protecting your trade secrets is a strategic investment in your company’s longevity and competitive advantage. A carefully crafted NDA plays a critical role in this process. By taking proactive legal measures, you ensure the sustainable growth and legal security of your business in Indonesia’s dynamic market.
For more information on NDAs or any intellectual property Indonesia matters, please contact us at ambadar@ambadar.co.id.
Written and Reviewed by Nabil Argya
