New Jersey Non-Disclosure Agreement

The New Jersey Non-Disclosure Agreement (NDA) is a form used for keeping confidential information safe. Once signed by both the entity sharing the information and the person or company learning it, the learning party will be legally required to refrain from sharing what they learned with anyone else. In the event they do, they can face legal persecution, requiring they pay damages, and/or cease any activity relating to the secrets (an action called an “injunction”). It is for this reason that NDAs have become favored by business professionals, employers, and those in the medical field who truly need to keep information from becoming publicly known. The agreement is incredibly effective in preventing disclosures of confidential information because of its key provisions that establish matters such as:

  • Who is involved in the agreement,
  • What information can and cannot be shared,
  • How long the receiving party is required to keep the information secret, and
  • Any other limitations the parties would like to add.

Trade Secret Law

Since January 5th, 2012, New Jersey has adopted the Uniform Trade Secrets Act, which is an Act designed to make NDA laws more consistent across the country. The general uniformity of the laws from state to state has made prosecuting those who have misappropriated trade secrets far more straightforward.

NJ’s Act, Title 56. Chapter 15, includes four (4) major sections. They are:

Page 1:  Gives the definitions of commonly used terms throughout the chapter.

Page 2: Provides the remaining definitions, covers when the courts can/will issue an injunction, and discusses when damages will be awarded to the complainant.

Page 3: States that the defendant (to misappropriation) cannot use the fact that they acquired the trade secret(s) through “proper means” as a defense. Additionally, it covers when the prevailing party’s attorney’s fees will be paid for, the statute of limitations (how long after discovering misappropriation, it can be brought as a case), and the law’s relation to other New Jersey Laws (continues to the 4th page).

Page 4: States that the law does not apply to misappropriation before the effective date (Jan. 5th, 2012), and gives the citeable title for the act, which is the “New Jersey Trade Secrets Act.”

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