I'm convinced that this is a significant factor in the relative narrowness of success, or out right lack, of the technology.
I guess they make enough from ebook readers they don't want to make them more widely available.
With something like eInk, getting it into the hands of engineers building wonky prototypes would allow rapid exploration of a lot of new markets.
But yeah, many business leaders are insecure and don't understand IP.
That has its downsides. For one thing, they own you. For another, if their plans shift, you are out of business.
They are worried a competitor might pop up and outcompete them, and they hope that lumbering their employees, their suppliers, and their customers with NDA's will prevent anyone from becoming that competitor.
I'm not sure they realise how much the NDA's scare off good employees, suppliers, and customers, leaving them unable to make quick progress, and in turn making them ripe for someone to outcompete.
"(II) PURCHASER IS PURCHASING THE PRODUCTS FOR COMMERCIAL USE AND/OR IN A BUSINESS CAPACITY. ORDERS PLACED BY CONSUMERS WILL NOT BE ACCEPTED."
If you sell something you give up any rights on the item sold. You can not any longer demand what the object should be used for, nor by whom it should be used.
See, if it's not lawful in the first place, you can't "breach" it.
IANAL, but I had enough law during my studies to know where this will lead. Maybe you can do these kind of shenanigans in the US of A, but I'm confident this kind of contract clauses are not possible in Europe.
(Truly insane position of the company - they ought to hire this person and make this a product one can buy.)
It's just like how so many car dealerships will tell you that getting your car serviced anywhere else will "void your warranty" even though that's blatantly illegal.