This prohibits the receiving party (the user of licensed software) from learning more about the trade secrets. A non-disclosure agreement can protect any type of information that is not generally known. However, nondisclosure agreements may also contain clauses that will protect the person receiving the information so that if they lawfully obtained the information through other sources they would not be obligated to keep the information secret. Use of non-disclosure agreements are on the rise in India and is governed by the Indian Contract Act 1872. Use of an NDA is crucial in many circumstances, such as to tie in employees who are developing patentable technology if the employer intends to apply for a patent. Non-disclosure agreements have become very important in light of India's burgeoning outsourcing industry. In India, an NDA must be stamped to be a valid enforceable document. A series of steps will be done once the agreement is breached. You can even take it to court and sue the breaching party for damages. The document formally known as a non disclosure agreement has several different names: NDA (which is really just an acronym for nondisclosure agreement), confidentiality agreement, confidential disclosure agreement, and proprietary information agreement. Regardless of what we decide to call it, we're still referring to the same type of contract, and it's an important one.