What is a reasonable duration for an NDA when partnering on product recipes, and is a 5-year term a red flag?
Members offered mixed perspectives on NDA duration and necessity in the FMCG sector.
**Duration:** - A 5-year NDA limit was questioned by the person asking, though no consensus emerged on whether this is unreasonably long or short for recipe partnerships.
**Broader perspective on NDAs in FMCG:** - Several members expressed scepticism about the practical value of NDAs in the drinks/FMCG space, arguing that recipes and formulations are rarely truly proprietary and that enforcement is difficult if disputes arise. - The view was raised that in practice, business relationships often rely more on trust and informal agreements ("handshake and gentlemen's agreement") than formal contracts, because legal enforcement is costly and damages relationships irreparably. - One member noted that "brand is different"—suggesting brand-related IP may warrant more protection than recipe IP alone.
**Caveat:** The community discussion did not provide specific guidance on standard NDA durations in the industry, so the 5-year term was not benchmarked against common practice. If recipe confidentiality is material to your partnership, consulting a solicitor familiar with FMCG licensing may be wise.
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