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An Arizona non-disclosure agreement (NDA) is often referred to as a Confidentiality Agreement . An Arizona non-disclosure agreement is an important legal document. Before creating one or signing one, you should get legal advice.
The purpose of this document is to use restrictive covenants to protect trade secrets, intellectual property, patents, customer lists, and other sensitive information. When an employee or an independent contractor signs an Arizona non-disclosure agreement, they are promising to keep certain information confidential. An Arizona non-disclosure agreement must be reasonable or it may not be enforced by the court.
Arizona non-disclosure agreements are governed by Ariz. Rev. Stat. § 44-401 through § 44-407 , the Uniform Trade Secrets Act. All non-disclosure agreements must be reasonable and comply with the above statutes. Arizona non-disclosure agreements should include a specific time-limit. However, the time limit must be reasonable. The geographical area limit must also be considered reasonable. Also, restrictive covenants must be considered reasonable.
An Arizona non-disclosure agreement is generally part of a contract package for employees and contractors. An employment contract may contain an NDA clause. Another important part of that contract package is an Arizona non-compete agreement .
Since the purpose of an Arizona non-disclosure agreement is to protect a trade secret, it’s important to understand how the law defines a “trade secret.” Under Ariz. Rev. Stat. § 44-401(4) , a trade secret is information in a formula, pattern, compilation, program, device, method, technique, or process that:
When writing an NDA, it needs to comply with Arizona law. Make sure that you review the law before you write the NDA. However, creating your own is no substitute for getting legal advice.
You may find that getting legal advice is the best way to gain clarity on what terms such as "reasonable" means for ensuring that your geographical restrictions, restrictive covenants, and time limits are reasonable. What you think may be reasonable and what a court or previously established case law considers reasonable may be drastically different. It's important to understand this because it's important that your NDA protects your trade secrets and other sensitive information and can stand up in court if there's a disagreement.
You can save your agreement template in Microsoft Word (.docx) for easier editing.
Finally, include space for the parties to print and sign their names, provide their titles, and to date their signatures. The parties should keep a copy of the document for their records.
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