Louisiana Non-Disclosure Agreement
The Louisiana Non-Disclosure Agreement (NDA) is the official tool used for restricting an individual or business from leaking confidential information to non-permitted individuals. Otherwise known as a “Confidentiality Agreement”, the document, once signed, protects anything deemed valuable or classified by the holder of the secret(s), which can include recipes, business plans, classified spreadsheets, and formulas, to name a few. Although less common, the form can be made to protect both parties should they need to disclose information to each other (called a “bilateral” agreement).
Trade Secret Law
Louisiana’s Uniform Trade Secrets Act (§§ 51:1431 through 51:1439) was added in 1981 and designed to mirror the general Uniform Trade Secrets Act. This Act was enacted for adoption by the majority of states in an effort to make the states’ trade secret laws very similar to each other, for the purpose of easing businesses that operated in more than one state. The following is a breakdown of each section of the Act:
- § 51:1431: “Definitions” – Covers the definitions of commonly used terms throughout the sections.
- § 51:1432: “Injunctive” – When compensation from damages can be received. A complainant (that won) will typically receive either compensation from damages and/or an injunction from the court.
- § 51:1434: “Attorney’s Fees” – Situations which garner having the winning party’s attorney’s fees paid for.
- § 51:1435: “Preservation of secrecy” – Says what the court will do to preserve the secrecy.
- § 51:1436: “Prescriptive period” – The timeframe for bringing a case of misappropriation (also called the statute of limitations).
- § 51:1437: “Effect on other law” – How the act affects other laws.
- § 51:1438: “Uniformity of application and construction” – Says the chapter is designed to be similar to other states adoption of the act.
- § 51:1439: “Short title” – How to cite the law.
Statute of Limitations
Those that discovered they were victims of misappropriation (stolen secrets) can make a case against the perpetrator so long the misappropriation was discovered (or should have been discovered) within three (3) years, according to § 51:1436.