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Non Disclosure Agreement

Difference Between Non-Disclosure Agreement and Data Sharing Agreement

Here we have detailed out the basic difference between non-disclosure agreement and data sharing agreement in detail.

Most businesses deal with classified information. Some companies have several confidential data to work on regularly. To maintain the confidentiality of these documents with the two different parties, companies usually use one of these agreements – Confidentiality Agreement and NDA.

When doing a business of any nature, it becomes very important to be legally secured. There is absolutely no value in ‘Words’, as everything should be written. Unless and until we have written proof, the companies cannot claim anything. Hence, this is where the role of the two very important documents comes into the picture. 

A Brief on NDA

NDA, a nondisclosure agreement, is used to establish a confidential relationship between two different parties. As per a relationship of confidentiality, at least one of the parties must not disclose any information without permission. In other terms, NDA is a contract that prohibits one from sharing any information. 

NDA’s can further be classified into unilateral or bilateral NDA – 

  • Unilateral NDAs are those where only one of the parties agrees not to disclose any information. 
  • A mutual or bilateral NDA is one in which both parties agree not to share confidential information. 

A Brief on Data Sharing Agreement:

A data sharing agreement is a legal contract that states all data can be shared and how it can be shared. Such an agreement protects the data and prevents the misuse of important information. It also eases any confusion between both parties. Before data is shared, the provider and the receiver must talk face to face about the data-sharing process. 

So, we can say that an NDA is similar to a unilateral NDA, whereas a mutual NDA is equivalent to a confidentiality agreement. 

Similarities between NDA and Data Sharing Agreement:

There are quite a few similarities between confidential and nondisclosure agreements. While many think both are the same, we will discuss the Non Disclosure agreement vs data sharing agreement in the later part of this article. 

The similarity between both NDA and Data Sharing agreement is:

  1. Identity sensitive information – These agreements prove an individual’s sensitive information. These include an individual’s name, driver’s license, social security number, address, etc. 
  2. Protected classified information – The agreement is a legal document that binds one or both parties not to disclose any confidential information to a third party. 

While both NDA and confidentiality agreements are the same, they have specific differences. Because of their differences, it is easier to understand which one of these can be used for Information Protection

Difference between NDA and Data Sharing Agreement:

There are a couple of differences between NDA and data sharing agreements. 

  1. Confidentiality:

NDA:- As a part of NDA, you must define what is confidential. Therefore, you need to be particular about what data cannot be shared and with whom it cannot be shared. That should be clearly stated if you are not allowed to disclose any information. 

Data Sharing Agreement

As a part of the data sharing agreement, it is essential to describe the process to ensure the confidentiality of the information. It is vital to ensure that sensitive information remains private. 

  1. Term of Agreement


The NDA could mean covering a transaction that would last for a few days or if you want it to last forever. Based on how long the relationship between these two parties goes on, the agreement will be based on that.

Usually, an NDA lasts longer than a specific sort of transaction, as long as the trade remains a secret. If you do not know what to mention here, you can choose an average timeline of one to five years. The period must last as long as you want the information to be confidential. 

Data Sharing Agreement

This agreement specifies when the provider will give the data to the receiver and how long that data can be used. After the end of the term, will the data be destroyed or returned to the provider? The agreement needs to mention these points very clearly. You can make Online NDA Draft from our experts.

Make a classified commitment to confidentiality with our Non Disclosure Agreement Templates, securing your sensitive business information.

Once the term of the agreement is over, it should be specified in the NDA if the confidential information needs to be returned to the provider or not. 

Data Sharing Agreement

In the case of a data-sharing agreement, one needs to mention the usage of data. Furthermore, it should clearly state how the data will be used once the agreement term is over.

  1. Consequences In Case Of Breach


In case the NDA is breached, there is a lawsuit against them. In addition, the individual can be sued for any damage incurred due to the breach. Unfortunately, sometimes all one wants to do is stop one from using the information. 

Data Sharing Agreement

In the data sharing agreement, every detail regarding the monetary costs in case of data sharing and any expense related to sharing of data should be mentioned. It should be stated whether the provider and receiver will share the costs. It might be that an entire agency has to pay for the expense. 

  1. Rules On Access To Data


In the NDA, you need to mention a few limitations as well. For example, the information you give to the recipient is a company. How should a company handle that data? In case you need to consult a lawyer, in that case, how should the information be handled? 

Data Sharing Agreement

It would help if you listed any restrictions on how data findings can be dealt with. For example, should the receiver mention how data is to be used? Is it alright for the receiver to share or publish the information? 


Here we have listed all the differences between NDA and data sharing agreement. It is true that both have some subtle differences and cannot be used interchangeably. If you want to know more about such legal terms and need assistance, then Vakilsearch is the one-stop destination for the same.

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