A South Dakota Non-Disclosure Agreement is a legally binding document that serves as a vital shield for confidential information. It is a formal contract between two or more parties, which is crucial for safeguarding proprietary data during hiring, contracting, or business collaborations. This encompasses designs, prototypes, and data beneficial to industry competitors.
In South Dakota, non-disclosure agreements are governed by the South Dakota Uniform Trade Secrets Act, which defines the legal rights and remedies available to parties in misappropriating trade secrets. Any breach of the agreement may lead to legal consequences, holding the responsible party liable for misappropriation.
Trade Secret Laws
UTSA Version Adopted: 1985
Misappropriation (§ 37-29-3 and § 37-29-4 Attorney’s fees): An employer can recover damages if their trade secrets are wrongfully misappropriated. The complainant may also receive compensation for attorney’s fees.
Statute of Limitation (§ 37-29-6): If the plaintiff becomes aware of the misappropriation, they have three years to file a lawsuit against the defendant.
Trade Secret Definition (§ 37-29-1(4)):
“Trade secret,” information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
(i) 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
(ii) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.