Nondisclosure agreement (NDA)

A contract in which parties agree to keep shared information confidential and use it only for an agreed purpose.

Updated

The NDA's role in AI data deals

An NDA is usually signed before a seller shares a data sample or detailed description with a buyer. It limits the buyer to evaluating the sample, bans other use, and requires deletion if no deal follows.

What a sample NDA should say

  • Purpose: evaluating the sample for a possible license, nothing else
  • No training: the sample may not be used to train or fine-tune any model
  • Access: only named people may see it
  • Deletion: destroy the sample if no deal is signed, with written confirmation
  • No re-identification: no attempt to identify people in the data
  • Mutual terms: if the buyer shares confidential needs, both sides are protected

What an NDA does not do

An NDA does not grant rights to use data commercially. That needs a data license. It also does not make it safe to share personal information; samples should still be de-identified.

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