The Pennsylvania non-disclosure agreement (NDA) is a contract that legally prohibits the receiving party from revealing trade secrets obtained from a disclosing party. The NDA relays the receiving party’s obligations to prevent confidential information from being shared. Once both parties have signed the document, the receiving party will be bound to the agreement until they are released from it via written notice from the disclosing party or the trade secrets lose their status. In the event that the agreement is broken, the receiving party will be held liable and, if brought to trial, ordered by the court to pay damages to the disclosing party.


Laws – Chapter 53 – Trade Secrets

Misappropriation (§ 5304 and § 5305) – Offenders are liable for damages equal to the claimant’s financial loss plus any unjust enrichment of the offender or a third party. In extreme cases, the claimant may be awarded up to two (2) times the original damages. Furthermore, the prevailing party may be entitled to be compensated for attorney fees.

Trade Secret Definition (§ 5302) – Information, including a formula, drawing, pattern, compilation including a customer list, 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.

(2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.