Ask HN: How to politely decline an NDA?
I am a freelancer. A prospective client wants me to sign an NDA before doing some work for him. I know that ideas are a dime a dozen, and it's the execution that actually matters. I don't know if he thinks us programmers are just sitting around thinking, "Man, if only I had something cool to build I could put all this algorithm stuff to work on!" but of course as everyone here knows, we don't need to steal people's ideas we don't even have enough time to implement all of our own ideas that we think are great.
How best to decline signing the NDA in a way that will leave me with the best chance of getting the job? (Assuming the guy is just misguided/ignorant about the value of NDAs from his attorney but is otherwise a nice guy to do work for, which I think is the case)
We did discuss things at a "high level" (I told him to avoid any specifics that might make him uncomfortable), and I learned enough about the project to know that, of course, nothing is new under the sun and there's definitely nothing about this project that is worth protecting with a legal document. It's just a mobile game thingy.
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Almost everyone will say "oh, I didn't want to derail the project, let's just move on without it". Some people would rather pay, and I'll gladly take their money.
Insistence on an NDA without payment is a factor in qualifying leads. Only qualified leads are "potential clients" [and only payment converts a potential client into a client].
Initial unwillingness to open the checkbook to pay for a freelancer's effort is a red flag because paying in exchange for effort is the very essence of the client-freelancer relationship. Clients who have an issue with this relationship at the beginning correlate with clients who have an issue with paying at the end.
[1]: https://hbr.org/2010/04/how-to-get-to-no/
Me: Sends preliminary project proposal based off of vague details to my referral.
Referral: Sends me NDA and introduces me to the potential client.
Me: "The 5 year NDA length is longer than I will agree to. Is there a reason for the excessive length? I will agree to a 1 year term." After doing this I did more research on what to do.
Potential Client: Nice to meet you. The NDA of 5 years is very standard stuff. All of our partners do sign this agreement. Hope you can too. Thanks. I would like to discuss the estimate so that I do understand all. Thanks again. I would look forward to working with you.
Me: "Why do you specifically need the NDA? I'm worried that it's written broadly and will restrict my creativity.
I'm going to have my lawyer take a look at it and get back to you in the next few weeks."
Me: Sent another message after thinking a little more. "I want my lawyer to make modifications based on the specific needs. I may require additional compensation to sign, especially a 5 year contract.
Please let me know your additional questions for the proposal. We can setup a time to talk tomorrow afternoon or I could answer the questions in more detail over email."
Potential Client: Thanks for your feedback. We are in very preliminary stages on this. I wouldn't go any further until we have had more internal meetings and have a chance to to provide more specifics. Thanks for your time.
I think, big picture, if you want to salvage this client (who seems to be moving on) you might wanna just get in the same room as them and start saying yes a lot. And you want to have this conversation last, after they're already super excited about the project and ready to get started.
Recently, I requested a client to sign an Indemnification and hold harmless agreement. The client came back expressing their concerns about couple of clauses and requested to remove them. I replied with details on what is the purpose of those clauses and how they protect both parties. I also suggested to the client that they are welcome to suggest modifications that achieve similar objective and situations as original clauses and also address their concerns.
Once client understood the reasons for those clauses, they signed the agreement without requesting any changes or removal of those clauses.
If the NDA is also a non-compete then no way in hell, but if it is a simple don't disclose my information to third parties, I don't see the harm. No one can prevent you from using knowledge, hence an NDA doesn't stop you from telling your next client hey I know how to do X because I have done it on 3 projects now.
What is the concern? Am I misunderstanding or missing something?
Some projects and tasks are worth the investment of educating the client. But trying to convince an untrusting individual to trust you over their attorney is one that should only be undertaken by the optimistic with time to burn.
In the end signing or not signing an NDA is a business decision and if it doesn't fit the freelancer's business model then it shouldn't be signed. That's just business.
If that's the case you can word the NDA so that it gives them what they want and you don't give up anything you don't want to give up.
It could also be that in order to implement the game (or whatever) you could require access to business strategy information (like pricing, upgrade dates...) that they want to keep secret. You can word the NDA to cover this but not the technical stuff.
Or if none of this applies then you can point out that NDAs don't cover information that is available publicly so any "ideas" typically won't be covered once they are publicly available.
And as others have pointed out always have your own template to start from.
My opinion and experience is that attorneys and law firms are there just in order to prove their usefulness - nothing more. And they are not useful at all. It happend SO many times that an agreement (not necessarily NDA) was kept by the "lawyers" for 3 weeks and then returned with some realy idiotic comments, exposing genuine iqnorane of the project we were working on.
Often, after the lawyer's review, they don't even put project leader's names, dates, bank account numbers, payment time, currency, phone numbers or other details in the agreement and such papers are later signed by CEOs (I wish I could one day show you these documents).
It seems to me that very often clients keep the documents for weeks, delaying the project launch, supposedly scrutinising and reviewing the paperwork, but are returned without being read at all.
We are now trying to sell our product to a minor supermarket chain and they asked us to give them source code to our software platform. When we told them it was impossible, they said that they get the source for every piece of software they use. That's nonsense, we replied and asked if Microsoft gave them the source code for Windows.
The same goes with NDAs - they think that their systems or business processes are so important and require special protection as if it was some kind of serious secret although it's just some simple intranet or knowledge base portal that we build for them.
Clients, negotiators, buyers, lawyers are incredibly ignorant when it comes to technical stuff.
* - (I'm not saying that agreements or legal advisors are wrong in general, just that very often the protection measures and suspiciousness are blown out of proportion)
There are perfectly honest reasons to decline and or modify an agreement. Simply state them and offer your earnest intent to make it work for everybody.
Then you say: "Fine, and you will need to sign my NDA".
If potential client will continue insisting on vague language - scrap him.