New Mexico Non-Disclosure Agreement (NDA)
An individual or company endeavoring to keep their Trade Secrets private from third (3rd) parties (the “Disclosing Party”) are strongly advised to complete a New Mexico Non-Disclosure Agreement. Otherwise known as a “Confidentiality Agreement”, this contract establishes legally-binding boundaries that the party the Disclosing Party plans to inform the trade secrets to (the “Receiving Party”) must uphold.
The form lists the terms and conditions of the agreement, which include the specifics of what information is classified, how the recipients can use it, and optional conditions such as jurisdiction and injunction (which involves issuing a court order to stop the Receiving Party from unlawfully sharing the Trade Secrets). Continue reading below to see a breakdown of New Mexico’s law regarding trade secrets as well as a guide for completing the NDA.
Trade Secret Law
New Mexico’s law regarding trade secrets, titled the “Uniform Trade Secrets Act,” covers how those that suffered from having their company confidential information stolen can claim damages. It states the ways in which the entity(s) using their information can be stopped by the court. The following are the sections of the Act (Chapter 57 § 3A):
- § 57-3A-1: The title of the Act.
- § 57-3A-2: Gives the definitions of four (4) commonly used terms the Act refers to.
- § 57-3A-3: This section covers injunctive relief, which is when a court orders a certain action be stopped, such as a competitor wrongfully using your trade secret for their own gain.
- § 57-3A-4: When the complainant can recover compensation from damages caused by misappropriation.
- § 57-3A-5: Covers situations in which the court will pay for the prevailing party’s attorney’s fees.
- § 57-3A-6: Lists the specific steps that the court will take to protect trade secret(s) involved with litigation.
- § 57-3A-7: Sets out the statute of limitations, which is the period of time in which the complainant has to bring a case (after discovering the misappropriation).