A Delaware non-disclosure agreement is a legally enforceable document, ensuring all parties involved in a business relationship commit to preserving the confidentiality of specific information.
An NDA defines what qualifies as confidential information, including business strategies, financial data, customer lists, and product designs. It also outlines the consequences for breaching the agreement, which may involve legal action and financial penalties. In Delaware, protecting intellectual property and confidential data is a legal necessity.
Trade Secret Laws
UTSA Version Adopted: 1985
Misappropriation (§ 2001(2)): The improper acquisition, disclosure, or use of another party’s trade secrets or confidential information, including unauthorized access, disclosure to third parties, or unauthorized use. Attorney’s fees (§ 2004) and damages (§ 2003) may be awarded to the prevailing party following the wrongful disclosure of trade secrets.
Statute of Limitation (§ 2006): Since discovering the misappropriation, the plaintiff has three years to file a lawsuit against the defendant.
Trade Secret Definition (§ 2001(4)):
“Trade secret” shall mean 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, and not being readily ascertainable by proper means by, 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.