1. The Client's Situation
Domestic technology company A, while pursuing a high-density technology collaboration project with a global company, came to be concerned about the legal risks of the draft NDA presented by the counterparty. In particular, the NDA designated the law of a foreign country as the governing law and included numerous special provisions, such as preliminary injunctions in addition to damages, so the situation was one that could affect whether the project would proceed at all.
2. Your Legal Team's Advice
Your Legal Team reviewed the NDA as a whole, clearly analyzing the scope acceptable from the client's standpoint and the risk factors, focusing in particular on the excessive damages standards and the feasibility of complying with the information protection measure requirements. As a result, we proposed specific amendments regarding the penalty-type liquidated damages, the comprehensive liability for damages, and the obligations related to establishing an information management system that were contained in the original text of the NDA, and we also presented negotiable alternatives for the provisions relating to the interpretation of the contract and jurisdiction.
3. Result
On the basis of Your Legal Team's assistance, the client concluded the NDA after tailoring it to suit its own business circumstances, and succeeded in amending or deleting a considerable number of the counterparty's high-risk provisions. Through this, the client was able to stably commence the global collaboration project in a state where legal risks had been minimized.