A Wisconsin Non-Disclosure Agreement (NDA) is a legally binding contract that protects a business’s confidential information, including trade secrets and proprietary data, from being disclosed by those who have access to it. It outlines the nature of the parties’ relationship, the confidential information, and the consequences if a party releases information outside of the contract’s terms.
Wisconsin NDA Laws Overview
- Governing Laws: Uniform Trade Secrets Act. (Wis. Stat. § 134.90)
- Statute of Limitation: A plaintiff should initiate legal action within three years of discovering misappropriation of their information. (Wis. Stat. § 893.51)
- Trade Secret Definition (Wis. Stat. § 134.90(1)(c)):
“Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique or process to which all of the following apply:
1. The information 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. The information is the subject of efforts to maintain its secrecy that are reasonable under the circumstances.
Are NDAs Enforceable in Wisconsin?
Yes, NDAs are enforceable in many business scenarios and relationships in Wisconsin. An NDA must include reasonable terms, provide consideration, and use precise language.
A complainant can recover damages for the actual loss caused by a violation and the unjust enrichment caused by the violation that isn’t accounted for when computing the actual loss. A court can award up to twice the amount in damages if the misappropriation was willful and malicious. [1]