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Old 06-26-2014, 07:26 PM   #36
astrangerhere
Professor of Law
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Quote:
Originally Posted by fjtorres View Post
Traditionally, in the tech industry NDAs with teeth are a prerequisute to pretty much any serious discussion between companies. No NDA, no meeting. The potential for insider trading is too high. Just a rumor can move markets...

(Imagine if somebody saw a high level B&N delegation walking into Apple HQ today. That kind of sighting alone can make the witness some serious cash.)

An NDA figures prominently in the rise of Microsoft as an OS company, back when IBM was secretly developing the original PC. Bill Gates, the son of a bank exec, was handed the NDA and saw he would be sued out of vital organs if he even hinted at anything while IBM was not liable for anything he showed then. He smiled and signed and got a deal to provide BASIC for the PC, a deal that led to further business when Digital Research refused to sign until flying the NDA past their lawyers. IBM was in a hurry and MS knew where to get an OS and the rest is history.
My industry before I started teaching, my area of practice was corporate pharma, and I know how NDAs work there, hence my curiosity. I just didn't want to assume. But I appreciate the context.
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