When to Use a Source Code NDA
Source code is often a company's most valuable intellectual property. Unlike standard business NDAs, source code NDAs must address unique technical concerns including repository access controls, code copying restrictions, derivative work prohibitions, and specific technical definitions of what constitutes "source code" in your context.
Contractor Onboarding
When giving developers, freelancers, or agencies access to your codebase for feature development or bug fixes.
Security Audits
When third-party security firms need repository access for penetration testing or code review.
Due Diligence
When investors, acquirers, or partners need to review your technical architecture and code quality.
Integration Partners
When third parties need to understand your code structure for building compatible integrations.
Legal Disputes
When opposing counsel or expert witnesses need code access during litigation or arbitration.
Training & Education
When using production code for internal training, bootcamps, or educational partnerships.
Essential Source Code NDA Clauses
Source Code Definition
Precisely defines what constitutes protected source code including all programming languages, scripts, configurations, and related documentation.
No Copying Clause
Prohibits any reproduction of source code beyond what is strictly necessary for the permitted purpose.
No Derivative Works
Prevents the receiving party from using your code as a base for their own projects or products.
Repository Access Controls
Specifies how repository access is granted, monitored, and revoked.
No Reverse Engineering
Extends protection to any compiled or obfuscated code that might be encountered.
Residuals Clause
Addresses what developers can retain in their general knowledge after the engagement ends.
Critical Considerations
Source code NDAs should always be accompanied by proper access controls. No NDA can fully protect code that is distributed without technical safeguards. Consider: read-only repository access, named individual credentials (no shared accounts), access logging and monitoring, time-limited access tokens, and geographic access restrictions where applicable.
Technical Protections to Pair with Your NDA
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Named SSH Keys - Require each individual to register their own SSH key. No shared credentials.
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Read-Only Access - Default to read-only. Only grant write access when absolutely necessary.
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Branch Restrictions - Limit access to specific branches. Keep production and main branches protected.
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Audit Logging - Enable comprehensive git audit logs. Monitor clone, pull, and push operations.
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Time-Limited Tokens - Use expiring access tokens rather than permanent credentials.
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IP Allowlisting - Restrict repository access to known IP addresses or VPN connections.
Pre-Access Checklist
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