An Alabama non-disclosure agreement is a legally binding contract frequently used by employers and designed to safeguard their sensitive business information from being disclosed. It establishes a confidential relationship between the parties, aiming to secure intellectual property and maintain trust.
This document operates under the jurisdiction of Alabama laws and regulations, ensuring the protection of trade secrets within the state. However, if the agreement is breached and the confidential information is utilized across state borders, the Federal Trade Secrets Act would come into effect.
Furthermore, this agreement isn’t limited to employer-employee relationships; it can also serve mutual parties, such as partnerships. These parties can utilize it when they collectively wish to prevent the exposure of their proprietary information to the public, thus maintaining the security of their vital business data.
Trade Secret Laws
UTSA Version Adopted: UTSA has not been adopted, but aspects of it are.
Misappropriation (§ 8-27-3): Any individual who reveals or exploits another person’s trade secret without proper authorization or privilege is legally responsible for the misappropriation of that trade secret. The disclosing party may be subject to damages (§ 8-27-4).
Statute of Limitation (§ 8-27-5): The plaintiff has two years to sue the defendant once misappropriation is discovered.
Trade Secret Definition (§ 8-27-2(1)):
A “trade secret” is information that:
- Is used or intended for use in a trade or business;
- Is included or embodied in a formula, pattern, compilation, computer software, drawing, device, method, technique, or process;
- Is not publicly known and is not generally known in the trade or business of the person asserting that it is a trade secret;
- Cannot be readily ascertained or derived from publicly available information;
- Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy; and
- Has significant economic value.