A Texas Non-Disclosure Agreement is a vital legal contract that helps protect confidential information. The state of Texas has specific laws regarding non-disclosure agreements that are designed to safeguard trade secrets and prevent financial loss. This agreement is essential in various business relationships, from employee training to engaging independent contractors.
It empowers the information owner to take legal action in case of unauthorized disclosure and ensures that critical business information remains confidential. By using an NDA, businesses can establish trust with their employees and contractors while safeguarding their vital interests.
Trade Secret Laws
UTSA Version Adopted: 1985
Misappropriation (Sec. 134A.004 and Sec. 134A.005): If someone steals trade secrets, the victim can receive compensation. If the theft was done in bad faith, the victim may also be able to recover attorney fees.
Statute of Limitation (§ 16.010(a)): If the plaintiff discovers any misappropriation, they have three years to file a lawsuit against the defendant.
Trade Secret Definition (§ 134A.002(6)):
“Trade secret” means all forms and types of information, including business, scientific, technical, economic, or engineering information, and any formula, design, prototype, pattern, plan, compilation, program device, program, code, device, method, technique, process, procedure, financial data, or list of actual or potential customers or suppliers, whether tangible or intangible and whether or how stored, compiled, or memorialized physically, electronically, graphically, photographically, or in writing if:
(A) the owner of the trade secret has taken reasonable measures under the circumstances to keep the information secret; and
(B) the information derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable through proper means by, another person who can obtain economic value from the disclosure or use of the information.