The Rhode Island non-disclosure agreement (NDA) is a document designed to prevent employees from disclosing valuable and confidential company information post-employment. The agreement is often enforced as a condition of employment. This condition ensures that the employee doesn’t enter the workplace, obtain knowledge of business practices, company data, marketing plans, or other like information, and distribute it to competitors for financial compensation.
Laws – RI Gen L § 6-41-1 (2017)
Misappropriation – In accordance with RI Gen L § 6-41-3 (2017), a complainant is entitled to compensation that includes the amount lost due to the misappropriation as well as “unjust enrichment” caused by misappropriation. Attorney’s fees may be rewarded to the prevailing party providing the conditions found in RI Gen L § 6-41-4 (2017) apply.
Trade Secret Definition (RI Gen L § 6-41-1 (2017)) – “Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
(i) 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
(ii) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.