The Kentucky non-disclosure agreement (NDA) is a contract prohibiting the improper disclosure, use, and dissemination of an entity’s confidential information and trade secrets. An individual/business (disclosing party) who intends to share information and trade secrets to another individual (receiving party) would be wise to have the receiving party sign an NDA, for disclosure of this sensitive information to any third party could be harmful to their business interests. Once signed, a non-disclosure agreement is legally binding, and the repercussions of breaching this agreement will result in a the disclosing party seeking compensation for any damages in a court of law.
Laws – § 365 (880-900)
Misappropriation – Defined under § 365.880 (2), misappropriation of trade secrets will result in an injunction as well as damages awarded to the disclosing party in accordance with § 365.882 and § 365.884.
Trade Secret Definition (§ 365.880) – “Trade Secret” means information, including a formula, pattern, compilation, program, data, device, method, technique, or process, that:
(a) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and
(b) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.