Why NDA Litigation is Rare

Non-Disclosure Agreements (NDAs) are essential tools for protecting sensitive information, but litigation over these agreements is surprisingly rare. Despite their widespread use, most disputes related to NDAs do not end up in court. This rarity in litigation can be attributed to several factors, which also highlight why adopting a standardised approach like oneNDA is a good idea that doesn’t increase your risk profile.

Why NDA Litigation is Rare

1. High Cost of Litigation: Litigation is expensive, and pursuing a breach of an NDA is often not cost-effective unless the damages are substantial. For most companies, the cost of legal action can outweigh the potential benefits, leading them to avoid court altogether. This is especially true for breaches involving less critical information​​. 
2. Settlements Outside of Court: Many NDA disputes are settled out of court. Companies prefer this route to avoid the unpredictability and high costs of litigation. Settlements allow for a quicker, less public resolution, with more control over the outcome​​.
3. Challenges in Proving Harm: To successfully litigate an NDA breach, a company must prove that a breach occurred and that it caused significant harm—something that can be difficult, particularly when the leaked information’s impact is not easily quantifiable​​​​.

How oneNDA Fits In

Given the rarity of NDA litigation, oneNDA offers a streamlined, standardised approach that actually reduces the risks associated with traditional NDAs. Here’s why oneNDA is a smart choice:

• Clarity and Simplicity: oneNDA is designed to be clear and straightforward, avoiding the vague and overly broad language that often makes NDAs unenforceable. By clearly defining what constitutes confidential information and setting realistic expectations, oneNDA minimises the ambiguity that can lead to disputes​​.
• Efficiency Without Increased Risk: By using a standardised template like oneNDA, businesses can reduce the time and legal costs associated with drafting and negotiating NDAs. This efficiency does not come at the cost of increased risk. Instead, oneNDA focuses on the core elements of confidentiality, ensuring that both parties have a mutual understanding of their obligations, which can prevent disputes from arising in the first place​​.
• Lower Legal Burden: The reality is that most NDA breaches are either minor or resolved outside of court. oneNDA’s simplicity makes it easier for businesses to manage NDAs without needing extensive legal review, reducing the legal burden while still providing the necessary protection for confidential information​​​​.

In conclusion, while NDA litigation is rare, having a well-drafted agreement like oneNDA can help ensure that your business is protected without the complications and risks associated with traditional NDAs. By adopting oneNDA, you can streamline your confidentiality agreements, save on legal costs, and reduce the likelihood of disputes—making it a smart, low-risk choice for your business.