If In the event you negotiate with other companies on any type business arrangement, a non-disclosure agreement binds both parties to keep the details of their meetings confidential. This means neither you nor the other party can openly discuss aspects of either business that would be considered proprietary information, such as financial statements, plans to launch new products, or any things that would harm either company should the information be made public.

This matter is just as serious as the confidentiality that exists between doctors and patients, and lawyers and clients. The point is to allow for a more frank dialogue between potential partners than would otherwise occur. After all, you're not going to divulge company information without some assurance that the recipient is not going to pass it on to a competitor. Intellectual property is granted the same protections as physical property, and your company's plans, ideas, and processes are considered as valuable as tangible assets like equipment and land.