Arkansas Non-Disclosure Agreement
The Arkansas Non-Disclosure Agreement (NDA) is a contract used to keep a company’s trade secrets from landing in the wrong hands. It is used when an individual will be learning a secret that is considered valuable to the company, such as a recipe or a business’ competitive advantage. The individual or company learning the information (called the “Receiving Party”) can be sued by the company sharing the information (the “Disclosing Party”) or faced with injunctive relief (a court order to stop an activity) if the party unrightfully shares the information.
A number of mandatory components must be evident in the NDA in order for it to be considered valid in the eyes of the law. The following NDA checklist can be used to ensure all necessary components of an Arkansas NDA are present to lawfully execute it.
Mandatory Components of an NDA
|Mandatory Components in an NDA|
Trade Secret Law
Arkansas’ interpretation of the Federal Uniform Trade Secret Act differs slightly than the general law published in 1979; a brief outline of Arkansas’ Theft of Trade Secrets Subchapter is below:
- A.C.A. § 4-75-601: Provides the definitions for commonly used words in Subchapter 6 (Theft of Trade Secrets).
- A.C.A. § 4-75-602: Explains how Subchapter 6 affects other laws.
- A.C.A. § 4-75-603: States the timeframe for bringing a case of misappropriation in Arkansas i.e. three (3) years.
- A.C.A. § 4-75-604: Details the situations in which Injunctive Relief will/can be ordered by the court.
- A.C.A. § 4-75-605: Conveys the steps that the court will take to ensure trade secrets are preserved.
- A.C.A. § 4-75-606: Notes that the damages caused by misappropriation that the complainant can recover.
- A.C.A. § 4-75-607: Highlights the situations when the court will cover the winning party’s attorney fees.