A Kentucky non-disclosure agreement is a legally binding contract between two parties to safeguard the confidentiality of sensitive information and trade secrets. It protects the disclosing party’s interests by banning the receiving party from circulating confidential data to any third party.
An NDA can cover a wide range of confidential information, including company assets, marketing plans, prototypes, and patents. If a breach occurs, the disclosing party can seek compensation in court for any resulting damages.
Trade Secret Laws
UTSA Version Adopted: 1985
Misappropriation (§ 365.884): A complainant can recover damages for misappropriation, which can include the improper acquisition or disclosure of a trade secret. They can seek the true value of the loss from the misappropriation and the unaccounted-for unjust enrichment. The court may award exemplary damages for as high as twice the award in extreme cases.
Statute of Limitation (§ 365.890): A complainant must bring an action of misappropriation to court within three years after discovering it or within a reasonable period of discovering it, depending on the case.
Trade Secret Definition (§ 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.