Negotiations between potential business partners are a complex matter. This is particularly the case when there is talk of developing a product and there is some sharing of information. Both in-house counsel and attorneys in law firms need to advise clients carefully throughout this thorny process.

An example was offered in a 2012 lawsuit brought against Block and Company in federal court in the Northern District of Illinois by nClosures. After reviewing the arguments, the court issued an opinion where the plaintiff lost the case by a summary judgment.

Here are some relevant details. nClosures said it invested more than $300,000 in the design and sale of tablet enclosures, including the Rhino iPad Enclosure. The two companies both agreed to a confidentiality and non-disclosure covenant so they could explore a potential partnership.