International NDA honored in the USA?

[olimits7]

Hi,

I have an iPhone app project that I'm currently talking to an IT company based out of India about. However, before they can give me an accurate price quote they want me to provide them with a detailed outline of the project.

I have no problem providing this detailed information, however, with iPhone app ideas being taken all the time I'm a little hesitant to disclose 100% of my idea to them.

They agreed to sign an NDA (Non Disclosure Agreement) form; which helps me feel a little more comfortable in disclosing this information.

Would an international NDA from India be honored in the USA?

Also, in the back of my head I feel like this NDA is worthless because if they really wanted to take my idea they could just use another company name when they submit the app to the iTunes store. Then the NDA would mean nothing and I wouldn't be able to hold them responsible; since the company name is different than what is listed on the NDA form.

I guess trust goes a long way when outsourcing projects internationally; so I don't know if I should go through with telling them the details of my project idea?

Thank you,

olimits7

[jecasc]

To answer this question you should look at the worst case scenario and check what your NDA is worth in this case.

A non disclosure agreement is only worth something if you are ready AND able to enforce the penalties that you agree on in the NDA.

So ask yourself the question: If the company in India screws you, will you go to an Indian court to enforce the penalties? Because if the company is based in India thats where you probably will have to go. Even if a US courts decides that they breached the NDA and should pay the penalites, a US court order probably won't help you much in India.

Things might look different a little bit if the company has a branch office in the US with a considerable size.

However that does not mean you can't do business with them especially if they are a reputable company that has been in business some time and has proven itself trustworthy in the past with other customers. Perhaps you could get some feedback from other customers of the company in the past?

[Green_Grass]

This kind of an NDA is useful if you mave a big business presence in India ( or with the company in question). If the Indian company does big business in your country, it will in general honor the NDA and be very careful. However, if it is a oneoff deal with a 'small' local Indian company, you may not really expect compliance. It will be more in the nature of an eyewash..

That said so, you can always cross question the company management as to how they plan to implement the NDA.. How will they protect the idea from being stolen by their employees?.. Is the company following international best quality practices? etc .. If the company is serious, they will have ready answers from their quality and legal teams. If you get bullsh*t , you can guess the worth of the NDA..