Posted on October 12th, 2009 by Barry Collins
Why ignorance isn’t bliss when it comes to NDAs
I have acquired a rather unfair reputation in the PC Pro office for being a bit of a moaner. However, I’ll happily (or should that be grumpily?) confess that one thing is guaranteed to get my dander up: non-disclosure agreements (NDAs).
These horrendous documents are becoming increasingly common in the technology trade. For those of you who are unfamiliar with their evil ways, they work as follows:
Company A decides to launch a new product, but it doesn’t want Company B or (more importantly) its customers knowing about it, just in case Company B decides to copy it or its customers decide to stop buying its current products and wait for the launch of the Shiny New Loveliness. So Company A invites a bunch of journalists along to see the new product, but before said hacks can get a sniff of the goods, they have to sign a five-page document promising not to mention said product before such and such a date.
I hate these documents for two reasons. First, because they don’t work. Journalists are (shock horror) terrible at keeping secrets. It’s like leaving a bag of sweets in the middle of a nursery and expecting the kids not to eat them. Our lawyer tells me that these ridiculous pieces of paper are legally enforceable, but no-one ever gets sued for breaking them. So the story dribbles out, and the publications that stick to the rules are punished for doing so.
Secondly, I’m a journalist – I’m in the disclosure business. I do this job because (strange as it may seem) I like telling people what’s going on. NDAs are a deliberate attempts to hide the truth, to keep you in the dark. And that’s the exact opposite of my job description.
PAYING THE PRICE
This weekend provided a prime example of how consumers suffer as a result of NDAs. The Ukraine vs England match was being heralded as the first international match to be “internet only”; the only way you could watch the game was to pay anything from £5 to £12 to watch it online or pop along to a cinema with the game. Up to 300,000 fans stumped up to watch the match in the middle of a recession, only to find out immediately after the final whistle had blown that the BBC was showing highlights of the game, after all.
How many of those 300,000 wouldn’t have bothered paying for the live stream if they’d known the highlights were on later? We’ll never know. But the net broadcaster was clearly worried it would be a significant number, because it made the BBC sign a NDA that guaranteed it wouldn’t mention the existence of the highlights until after the match. And our national broadcaster shamefully thought nothing of misleading the public with fake TV schedules in order to secure the rights to the game.
When it comes to technology, the penalties are potentially even worse than Andriy Shevchenko’s effort on Saturday. We may have a £500 DSLR sitting atop of our A List, knowing full well that a better-specified successor is due for release next week, but we can’t tell you about it. So people spend a considerable sum of money on a piece of kit that’s practically obsolete a week later.
Why do we sign these nasty little agreements in the first place? It’s an argument we’ve had many times in the office, but one that always ends with us reluctantly agreeing to carry on signing. If we don’t sign the NDAs, we don’t get early access to the products. If we don’t have early access, we can’t test and benchmark the products before the deadline lifts, which means that all our competitors have full-blown reviews published before we’ve even got our hands on the kit. It can takes days, if not weeks, to benchmark and test a product properly. By the time we’ve got our review of Shiny New Loveliness up, it’s neither new nor shiny. And you start emailing us, wondering why we’re not doing our jobs properly.
What’s more, if we didn’t sign the NDAs we wouldn’t be told about the products in advance, so we (and consequently you) would be none-the-wiser about that new DSLR, graphics card or processors that are due to replace our A List winners anyway.
It’s the catchiest of Catch 22s. Which is why I defer to no-one in my admiration for Apple’s outright contempt for NDAs (at least journalist NDAs, I know it swears its partners to Soviet-level secrecy). Apple’s famed paranoia means it doesn’t brief journalists in advance of big announcements. The first any of us truly know of a new MacBook, iPhone or tablet device is when Steve Jobs announces it on stage. Nobody has to hide the truth, and Apple is generally pretty good at dishing out review units shortly after launch, so that everyone gets a fair crack of the whip.
I wish the rest of the industry would follow Apple’s lead on NDAs. In the meantime, you have my sincere apologies and regret for continuing to sign them.
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October 12th, 2009 at 2:57 pm
What really annoys me about NDAs is when a company gets everyone to sign one, but has a secret agreement with Publication X that they are allowed to publish an early exclusive.
You think you’re signing an NDA to protect the manufacturer, but in reality you’re protecting the competition!
Perhaps when a manufacturer asks us to sign an NDA we should at the same time ask them to sign an FDA (fair disclosure agreement), stops them using NDAs to benefit rival publishers …
October 12th, 2009 at 3:09 pm
The Ukraine vs England match: Ahh! So that’s what Brucie (in Strictly come Prancing) was on about when he said he’ll be watching the match later on bbc.
October 12th, 2009 at 3:15 pm
I feel like your keeping something from us here!
October 12th, 2009 at 3:41 pm
Ignorance is seldom bliss, but where daft legal agreements are concerned, ignore-ance often is!
October 12th, 2009 at 4:12 pm
Fortunately companies leak info without realising it. ‘Out of stock’ is getting to be a reliable indicator of product refreshes on online stores. And blogs are regularly flogging rumours. So my advice to any self-respecting journalist is to get himself a pseudonym and a blog. I look forward to these NDAs being tested in court. They are probably useless.
October 12th, 2009 at 10:17 pm
I can remember when the whole pre-pre release festival used to get well out of control, and how it fostered an unhealthy culture between manufacturers and writers – something we are still regularily accused of and trying to recover from, even now. For me it’s easy because I am not a “hot news” kinda guy…
October 13th, 2009 at 7:54 pm
Where the A list is concerned maybe you could put together some kind of ’shelf-life’ rating system which can be used as an indication of whether a product is about the be superceded by something better? That way people reading the A list will know that something might be coming that knocks it from the current top spot, without knowing exactly what it is.
October 14th, 2009 at 12:52 pm
I think Colin’s idea is pretty sound. Just knowing how long a product has been released isn’t a garruntee to knowing if something is about to supercede it. It would however show which products had only just been released and which were in the zone of being replaced. Of course just because something is going to be replaced doesn’t necessarily mean it will retain A list status.
November 26th, 2009 at 9:54 pm
Good idea… auction houses use meangingful phrases to indicate the state of play in an auction “against the room, on the floor, etc). Why not adopt the phrase “we feel it is long in the tooth” meaning ‘new model due to be announced’ and “feel it is at the end of its shelf life” for ‘new model to launch next week’.