A North Dakota Non-Disclosure Agreement (NDA) is a crucial legal document establishing a confidentiality agreement to protect sensitive and proprietary information, such as product designs, technical procedures, and field studies, that may have commercial value.

The North Dakota Uniform Trade Secrets Act (NDUTSA) outlines the legal remedies available in the event of a breach of an NDA. As defined by NDUTSA, trade secrets must have economic value and be reasonably safeguarded to qualify for protection.

Governing Laws: § 47-25.1-01 – 47-25.1-08 (Trade Secrets).
Statute of Limitation: If a party’s information is misused in violation of a non-disclosure agreement, they must take legal action within three years (§ 47-25.1-06).
Trade Secret Definition (§ 47-25.1-01(4)):

“Trade secret” means information, including a formula, pattern, compilation, program, 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 North Dakota?

Yes. NDAs are enforceable in North Dakota if they are reasonable and protect legitimate business interests. The agreement must clearly identify the confidential information being protected and should not impose overly broad or indefinite restrictions. NDAs that are excessively restrictive or vague may be invalidated by North Dakota courts.