A Kentucky Non-Disclosure Agreement (NDA) is a contract between two parties designed to protect the confidentiality of sensitive information and trade secrets. It ensures that the receiving party is prohibited from disclosing confidential information to any third party without proper authorization.
NDAs in Kentucky can cover various types of confidential data, such as company assets, marketing strategies, prototypes, and patents. In the event of a breach, the disclosing party may seek compensation for damages in court.
Kentucky NDA Laws Overview
- Governing Laws: Title 29, Chapter 365 (Uniform Trade Secrets Act)
- Statute of Limitation: The plaintiff has three years to file a lawsuit after discovering the misappropriation or within a reasonable period, depending on the case (§ 365.890).
- Definition of Trade Secret (§ 365.880(4)):
“Trade secret” means information, including a formula, pattern, compilation, program, data, device, method, technique, or process, that:
(a) 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
(b) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
Are NDAs Enforceable in Kentucky?
Yes, NDAs are enforceable in Kentucky. If misappropriation occurs, the complainant can recover damages based on the actual loss and any unjust enrichment resulting from the breach. In extreme cases, courts may grant exemplary damages, which could be twice the original award amount.
