The New Mexico non-disclosure agreement (NDA) is a contract that employers can use during the hiring process to prevent employees from disclosing trade secrets or other confidential company information. NDAs can also be used for any other situation in which trade secrets are being exchanged. In order for confidential information to be considered a trade secret, it must have an actual or potential value and not be public knowledge. If the employee breaks the terms of the agreement, they will be liable for any damages incurred upon the employer. The agreement only expires if confidential information loses its trade secret status or if the employer terminates the contract.
Misappropriation (§ 57-3A-4) – Complainants in misappropriation cases are entitled to recover damages for the breach of an NDA. Damages include both the quantifiable monetary loss caused by misappropriation and the amount gained by the offending party. Furthermore, in exemplary cases where the misappropriation was willful and malicious, the complainant may be given up to twice the determined amount of damages.
Trade Secret Definition (§ 57-3A-2) – As used in the Uniform Trade Secrets Act, “trade secret” means information, including a formula, pattern, compilation, program, device, method, technique or process, that:
(1) 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
(2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.