FAQs


Non-Disclosure Agreement (“NDA”)

What is a Non-Disclosure Agreement (‘’NDA’’) ?

A Non-Disclosure Agreement is an agreement which seeks to protect confidentiality, secrecy of information shared with others.

Is an NDA enforceable?

An NDA is an enforceable contract provided:
1) It is duly accepted and executed by the parties to the NDA;
2) The terms and conditions included are aligned with applicable laws and degree of reasonableness as prescribed by judicial precedents in the concerned jurisdiction, if any.
3) The information exchanged does not fall under the universal exclusions to the scope of confidential information.
4) Such other terms as may be applicable based on the type of NDA and the purpose of the NDA.

An NDA is an enforceable contract provided:

1) It is duly accepted and executed by the parties to the NDA;
2) The terms and conditions included are aligned with applicable laws and degree of reasonableness as prescribed by judicial precedents in the concerned jurisdiction, if any.
3) The information exchanged does not fall under the universal exclusions to the scope of confidential information.
4) Such other terms as may be applicable based on the type of NDA and the purpose of the NDA.

Do NDAs have an expiry date?

Term and survival of confidentiality obligations is captured in the NDAs, depending upon the discussion between the parties, the criticality of information exchanged and the purpose of the potential/proposed business.

What are the types of NDAs?

Depending upon the purpose of the NDA, an NDA can be unilateral, or mutual, Business NDA Employee NDA. In order to identify what type of NDA is to be executed, it is necessary to determine the purpose of the same. NDAs are generally executed by parties before initiating actual business arrangement as NDAs gives the parties a chance to evaluate and gauge by exchange of preliminary information whether an actual business is feasible or not.

Should signing an NDA suffice if parties have initiated business?

NDAs only protect the information exchanged between the Parties. However, after initiation of business, many rights, duties and obligations ensue and in order to record these, it is necessary that a separate agreement incorporating these rights and duties is executed between the Parties.

Leave and License Agreement

What is a Leave and License agreement?

A Leave and License agreement is a legal document that allows the licensee to occupy a licensor’s property for a specific period without creating any landlord-tenant relationship. It is primarily used in Maharashtra to rent out residential or commercial properties.

How does a Leave and License agreement differ from a lease?

A lease creates a transfer of interest in the property from the owner to the tenant, giving the tenant exclusive possession for a fixed term. A Leave and License agreement, on the other hand, does not transfer any interest and grants permission to use the property without any exclusive possession.

Is it mandatory to register a Leave and License agreement in Maharashtra?

Yes, under the Maharashtra Rent Control Act, 1999, it is mandatory to register a Leave and License agreement to make it legally enforceable. Non-registration can lead to penalties.

How is stamp duty calculated on a Leave and License agreement?

Stamp duty is calculated based on the tenure of the agreement and the rent payable. For agreements up to 60 months, it's usually 0.25% of the total rent and deposit for the duration of the agreement.
Consider the following example for better understanding.
1.A = Monthly rent x Time
2.Advance rent + period/ refundable deposit = B
3.10 percent x Refundable deposit x No of years of the agreement = C
4.Total stamp duty = 0.25% x A+B+C
Now considering the above factors
1.A= Rs. 110,000 if the monthly rent is Rs. 10,000 whereas the duration is 11 months.
2.B = 10,000 (The advance rent – Rs. 10,000)
3.C = 10% x 100000 x 1 = 10000.
4.A+ B+C = 110000 + 10000 + 10000 = 130000
Stamp Duty = 0.25% x 130000 = Rs. 325

Intellectual Property: Patents

What is a patent?

A patent is a set of limited period exclusive statutory rights granted by the Government to the patentee regarding the particular invention by such patentee (which may be a process or product).

If I file a patent in India, then do I need to file it in other countries too ?

Yes, if you register a patent in India, it will only be protected within India. To obtain patent protection in other countries, you will need to apply for patents in each of those countries separately. While the novelty of a patent is assessed globally, patent protection is territorial. This means that even though the criteria for novelty might be consistent, the rights granted by a patent are only enforceable within the country where the patent is registered. Therefore, if you want to enforce your patent rights and prevent others from using your invention in other countries, you must register your patent in each of those countries

Are software/programs patentable?

The Indian Patent Act excludes "computer programs" from patentability. However, software combined with hardware or software that produces a technical effect might be considered for patent protection. The criteria and interpretation can be complex and case-dependent.

Can Patent Holders extend the life of patent beyond expiration date?

In India, the standard patent life is 20 years from the filing date, with strict regulations against extending this period through evergreening tactics. India has stringent measures to prevent patent evergreening, primarily through Section 3(d) of the Indian Patent Act. This section restricts the patentability of new forms of known substances unless they result in a significant enhancement in efficacy


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