Best Practices for Negotiating Data Sharing Agreements

Learn how to effectively negotiate data sharing agreements to protect sensitive information, ensure compliance, and foster successful collaborations. Discover best practices for defining data ownership, security measures, and dispute resolution.


Data sharing agreements (DSAs) are crucial for collaborations that involve exchanging sensitive information. But before you dive in, it’s important to understand how to negotiate a DSA that benefits everyone involved. Here are some key best practices to keep in mind:

  1. Clarity is Key:
  2. Ownership and Usage:
  3. Security and Risk Management:
  4. Long-Term Considerations:
  5. Seek Expert Advice:
data sharing best practices

Clarity is Key:

  • Define Your Goals: Be clear about why you’re sharing data and what you hope to achieve. This sets the stage for a win-win situation.
  • Transparent Language: Use precise terms that everyone understands. No room for ambiguity when it comes to data rights and responsibilities.

Ownership and Usage:

  • Who Owns the Data? Clearly define ownership of the data and any insights derived from it.
  • Restrictions Apply: Specify how each party can use the data and any limitations on further sharing. When considering these restrictions consider PopIA Section 3 which requires limitations of processing for a defined business purpose and requires further processing to be in line with the agreed purpose

Security and Risk Management:

  • Protect the Data: Detail the security measures (encryption, data masking, access controls) to safeguard the information.
  • Compliance and Risk Sharing: Ensure the agreement aligns with data protection laws (e.g., PoPIA) and clearly outlines data security responsibilities and potential liabilities.

Long-Term Considerations:

  • Data Disposal: Determine how long data will be kept and establish secure disposal procedures once it’s no longer needed.
  • Dispute Resolution: Include a clear plan for resolving any disagreements that may arise during the collaboration.
  • Regular Reviews: Schedule regular reviews of the agreement to ensure it stays relevant and adapts to changing regulations.

Seek Expert Advice:

  • Legal Expertise: Involve legal professionals to ensure the agreement is legally sound and protects your organization’s interests.

By following these best practices, you can create a DSA that fosters secure collaboration while safeguarding data privacy and adhering to legal guidelines. Remember, a well-negotiated DSA is a foundation for successful data-driven partnerships.

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