What You Need to Know About Non-Disclosure Agreement Violations

If you have a collaboration with a company or a business, you will likely sign a non-disclosure agreement (NDA). The NDA offers protection of confidential information that should not be acknowledged to anyone else but the contractor and the worker. This type of agreement contains client info, manufacturing process, plans for work, potential new products. This type of agreement is made so the company’s secrets remain protected and kept.

But what happens if one of the sides breaks the NDA? If you own a business or a company and a collaborator or an employee violates the agreement, you can take various steps to protect yourself and your business. It is a good idea if you consult with a New Mexico employment law attorney, before taking any step.

How NDAs Are Violated

A collaborator or an employee may steal, commit fraud, hack or bribe anyone from your company and leak confidential information in unauthorized ways by violating a non-disclosure agreement. The employee may give away confidential info to a reporter or a blogger (they will later share the info with the media). Your current collaborator or employee may get an offer from another company for a higher salary in exchange for secrets from your company.

Hackers can also violate your secured files and share the info with the public or they may seek money in order not to do that. If you have a prototype device stolen from your home or office, it could easily end in the competitor’s hands, which could be serious damage to your work and efforts.

Fortunately, the law protects confidential business information or trade secrets; this law is based on the Uniform Trade Secrets Act (UTSA). It sets strict rules about confidential information and the trade of secrets and protects processes and techniques, patterns, programs, formulas, devices, drawings, and codes.

What To Do After the NDA Is Violated

The non-disclosure agreement can be violated through trading info, hacking, or an employee going into a competitive company for a higher salary. You can take several methods to save your company. First, you should investigate how the theft of info happened. When the secret comes out, you should learn how it happened.

This won’t be easy and you’ll need precise evidence that shows how the info leaked. If you cannot do this, you’ll be responsible for legal expenses racked up by both sides under the terms of the USTA rules and the rules from your non-disclosure agreement. While working on getting the info, look for ways how the secrete got out, how it was used, and the count of the financial value of the information.

Review your original document. Most of the methods you can use in such a case are written in the NDA. Read it again carefully and then determine what legal claims you should take.

You might have to pursue damages from the stolen info. You may use such as copyright infringement, breach of fiduciary duty, trespass, conversion, misappropriation of trade secrets, and patient infringement. Keep in mind that when you’re creating a non-disclosure agreement and give it to your collaborator or employee to sign, you need to be aware of how legal agreements work. Your knowledge of this will helps you find legal ways to protect your company.

Violation of NDA & Consequences 

An NDA is a legal contract that brings consequences if it’s violated. If you violate a non-disclosure agreement and your boss finds out that you leaked confidential info with the public or another company, then you can be sure that your job is at risk. It could mean that you’ll instantly get fired. This will likely happen even if the NDA doesn’t have this feature. You can expect to be sued for financial damage that resulted after the NDA violation.

Contact an Attorney

If this process appears complex, especially if you’re a business owner, it’s best to seek legal help from an attorney. If you have violated an NDA with a company where you’re a collaborator or work, and get sued, you will need a good defense. It’s best if you don’t go into the process by yourself.

Our team at FBD Law has experience with such cases and we’ll gladly help you. Let us review your case and help you with transactional legal services. This type of NDA violation can be so serious, that may lead to the complete destroying of your business. Don’t let things go unpunished. We are here to help you. Call our office and schedule your first consultation.

Share on facebook
Share on twitter
Share on linkedin
Share on reddit