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Rebecca Edelson, left, partner in Sheppard Mullins’ Intellectual Property and Litigation Practice Groups in Century City, and leader of the firm’s trade secret practice, and Chidera Anyanwu, right, associate in the firm’s Intellectual Property Practice Group in Washington, D.C..

Nondisclosure Agreements (NDAs) are making headlines daily—from President Donald Trump requiring his senior staff to sign them, to adult film star Stormy Daniels claiming she was coerced into signing one. Aside from these political and perhaps personal uses of NDAs, they are most commonly used in business and can be critical to a business’ success. However, NDAs are often given short shrift. Ordinarily, the parties entering into an NDA are in a good relationship when the NDA is negotiated and signed. But, relationships sour—and a poorly drafted or performed NDA can wreak havoc on a business. It is, therefore, important that NDAs are drafted and performed with care. Some common errors include:

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