Decades in Business,
Technology and Digital Law

  1. Home
  2. —
  3. Blog
  4. —
  5. 🔒 The Hidden Cost of NDA Compliance: Can You Really...

🔒 The Hidden Cost of NDA Compliance: Can You Really Delete Everything?

by | Dec 26, 2024 | Blog

Trade Secret Compliance

When was the last time you read the “Destroy All Confidential Information” clause in an NDA and thought, Wait
 how does this apply to my backups?

This often-overlooked provision seems straightforward—until 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.

đŸ”„ Why This Matters:
Many NDAs require parties to destroy confidential information upon request or when the NDA ends. But here’s the catch:

  • Backups are built to endure – By design, backups aren’t easy to tamper with.
  • Cost of compliance – Purging backups can mean system-wide overhaul or forensic-level data scrubbing.
  • Legal gray areas – If destruction isn’t practical, are you technically in breach?

How to Tackle This:

  1. Negotiate upfront – Add clauses that exclude backups from destruction, or limit destruction to “commercially reasonable efforts.”
  2. Retention periods – Specify how long backups are kept and when they will naturally expire.
  3. Certifications – Offer to certify that data won’t be restored or accessed, instead of full deletion.
  4. Transparency – Clearly outline your backup process during negotiations.

💡 Pro Tip: If you spot this clause in your next NDA, don’t breeze past it. Address it early to save yourself from future headaches (and unexpected bills).

#NDATips #LegalCompliance #DataPrivacy #ContractNegotiation #BackupDilemma

 

How Can GalkinLaw Help?

Fields marked with an * are required

"*" indicates required fields

Would you like to schedule a free initial consultation?
How do you prefer to be contacted?
This field is hidden when viewing the form
*
This field is for validation purposes and should be left unchanged.