A California non-disclosure agreement is a legally binding contract that protects sensitive information and trade secrets. This can encompass various data, including business strategies, client lists, financial data, and technological innovations. NDAs empower you to assert control over who can access and share your confidential information while fostering trust in your business relationships.
Parties entering an NDA acknowledge their shared duty to safeguard confidential data, enabling open collaboration while securing valuable assets. A comprehensive understanding of California’s non-disclosure laws and regulations will give you the knowledge to make informed decisions regarding protecting your valuable information.
Trade Secret Laws
UTSA Version Adopted: 1979
Misappropriation (3426.1(b)): Misappropriation represents the acquisition, disclosure, or use of a trade secret by someone who knows or has reason to know that their actions constitute a breach of a duty of confidentiality. Attorney’s fees (§ 3426.4) and damages (§ 3426.3) may be rewarded to the plaintiff.
Statute of Limitation (3426.6): The plaintiff has three years to sue after the misappropriation is discovered.
Trade Secret Definition (3426.1(d)):
“Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
- Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and
- Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.