A New Jersey Non-Disclosure Agreement is a vital legal instrument safeguarding sensitive information between parties. Also referred to as an NDA, it assures the protection of trade secrets and confidential data. In case of a breach, the responsible party may be held financially liable.
This agreement is particularly essential during onboarding, ensuring the security of proprietary information. The document remains valid until trade secrets become public or termination notice is given. It’s worth noting that the New Jersey Trade Secrets Act will hold governance, ensuring full compliance with state statutes.
Trade Secret Laws
UTSA Version Adopted: 1985
Misappropriation (§ 56:15-2,§ 56:15-4, and 56:15-6): One who misappropriates something is liable to compensate for the actual loss incurred and any unjust enrichment resulting from it. In intentional and malicious misappropriation cases, the court may award up to twice the amount of damages.
Statute of Limitation (§ 56:15-8): The plaintiff has three years to sue the defendant once misappropriation is discovered.
Trade Secret Definition (§ 56:15-2):
“Trade secret” means information, held by one or more people, without regard to form, including a formula, pattern, business data compilation, program, device, method, technique, design, diagram, drawing, invention, plan, procedure, prototype or process, that:
(1) 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
(2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.