An Iowa Non-Disclosure Agreement (NDA) is a legal document that allows one party to prevent another from disclosing its sensitive information to unauthorized individuals or businesses. This agreement is often used when a company shares confidential information with investors, clients, vendors, or employees. The agreement can be unilateral, protecting the interests of one party, or mutual if both parties exchange confidential information.
Iowa NDA Laws Overview
- Governing Laws: Iowa Trade Secrets Law (Title XIII, Chapter 550 – Trade Secrets)
- Statute of Limitation: A plaintiff has three years from discovering the misappropriation to file a lawsuit (§ 550.8).
- Definition of Trade Secret (§ 550.2(4)):
“Trade secret” means information, including but not limited to a formula, pattern, compilation, program, device, method, technique, or process that is both of the following:
a. Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by a person able to obtain economic value from its disclosure or use.
b. Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
Are NDAs Enforceable in Iowa?
Yes, NDAs are enforceable in Iowa. The state’s Trade Secrets Law provides protections for businesses sharing confidential information. Misappropriation of trade secrets, including unauthorized disclosure or use, can lead to penalties such as compensatory damages and, in malicious cases, double the original award amount.
