A Pennsylvania Non-Disclosure Agreement establishes a confidential relationship between parties, ensuring that sensitive information remains protected under the state’s laws.
An NDA safeguards trade secrets, business strategies, and proprietary data. If the terms are violated, the offending party may face legal consequences and financial liabilities, as upheld by Pennsylvania law.
The non-disclosure remains in effect until the confidential information becomes public knowledge or the disclosing party formally releases the other party from their confidentiality obligations, with Pennsylvania providing a legal framework for recourse if the terms are breached.
By signing the agreement, both parties acknowledge the significance of preserving the confidentiality of the shared information, which is instrumental in shielding businesses from unfair competition and preserving their invaluable intellectual property.
Trade Secret Laws
UTSA Version Adopted: 1985
Misappropriation (§ 5304 and § 5305): Offenders must pay for damages equal to financial loss and unjust enrichment of themselves or others. In extreme cases, the claimant may receive double damages. Prevailing parties may get attorney fees.
Statute of Limitation (§ 5307): A lawsuit must be filed within three years of a breach of an NDA.
Trade Secret Definition (§ 5302):
“Trade secret.” Information, including a formula, drawing, pattern, compilation including a customer list, program, device, method, technique 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.
(2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.