Difference between non-disclosure and confidentiality


Non-disclosure and confidentiality are terms relating to the use of confidential and private information. They are generally incorporated in a document which regulates the use of such confidential information. Such documents are called Non-Disclosure Agreements and Confidentiality Agreements.

In business practice, they are used interchangeably and there is little or no difference between the Confidentiality Agreement and the Non-Disclosure Agreement. Persons entering into a Confidentiality Agreement or a Non-Disclosure Agreement will get the same level of protection, depending, of course, on the exact content of such documents.

From a technical point of view, the term confidentiality may be perceived as an obligation, which is either described in a separate document or incorporated in a contract regulating a certain matter. A confidentiality statement is often a one-sided document in which one party agrees not to disclose any information related to the other party in relation to a transaction or other matter.

A Non-Disclosure Agreement is generally seen as a free-standing document which regulates the relationship between two parties in respect of the disclosure of certain proprietary information for a specific purpose.

However, this differentiation has little relevance to real life practice.