The North Dakota non-disclosure agreement (NDA) is a written agreement between two (2) individuals in which the receiving party agrees not to disclose any trade secrets obtained from the disclosing party. This type of contract is most often applied to employees by their employers during the hiring process to help protect their business from any unjust competition. In order for something to be considered a trade secret, it must have economic value and be reasonably protected from discovery. Once the receiving party signs the agreement, they will be held to its terms until they are released from the contract by the employer or until the confidential information is made public.
Misappropriation (§ 47-25.1-03) – Complainants are entitled to recover damages for misappropriation; both for the actual loss caused by misappropriation, and any unjust enrichment not otherwise taken into account. If the misappropriation was willful and malicious, the court may award exemplary damages to the prevailing party of up to twice the original amount, as well as a reasonable amount for attorney’s fees.
Trade Secret Definition (§ 47-25.1-01) – “Trade secret” means information, including a formula, pattern, compilation, program, 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.