When was the last time you read the âDestroy All Confidential Informationâ clause in an NDA and thought, Wait⊠how does this apply to my backups?
This often-overlooked provision seems straightforwardâuntil you realize that deleting information from backup systems isn’t as simple as hitting “delete.” Data lingers in archives, across multiple servers, and within retention systems designed to prevent loss.
Full compliance could mean massive expense, disruption, or even the impossible.
đ„ Why This Matters:
Many NDAs require parties to destroy confidential information upon request or when the NDA ends. But hereâs the catch:
- Backups are built to endure â By design, backups arenât easy to tamper with.
- Cost of compliance â Purging backups can mean system-wide overhaul or forensic-level data scrubbing.
- Legal gray areas â If destruction isnât practical, are you technically in breach?
How to Tackle This:
- Negotiate upfront â Add clauses that exclude backups from destruction, or limit destruction to “commercially reasonable efforts.”
- Retention periods â Specify how long backups are kept and when they will naturally expire.
- Certifications â Offer to certify that data wonât be restored or accessed, instead of full deletion.
- Transparency â Clearly outline your backup process during negotiations.
đĄ Pro Tip: If you spot this clause in your next NDA, donât breeze past it. Address it early to save yourself from future headaches (and unexpected bills).
#NDATips #LegalCompliance #DataPrivacy #ContractNegotiation #BackupDilemma