An Indiana non-disclosure agreement is signed by employees or contractors. Essentially, the are promising not to reveal any of the business' secrets to the public, other businesses, or competitors. However, it is important to note that an Indiana non-disclosure agreement must include a specific time limit.
Non-disclosure agreements are regulated by IC 24-2-3. It is entitled “Trade Secrets.” It’s important to note that under the “Short title,” that this particular part of the law overrides any conflicting laws except those found within contract law and criminal law.
Indiana law (IC 24-2-3-2) defines “trade secret” as information that can include a formula, pattern, compilation, program, device, method, technique or process that has its own actual or potential economic value. This information cannot be general knowledge. It also cannot be information that another company within the industry could easily ascertain. Finally, the business creating the non-disclosure agreement must take reasonable steps to keep that information private.
Indiana non-disclosure agreements are legally binding, but in order for a court to uphold one, it must include reasonable limitations for time, geography, and restrictions. This is known as reasonable scope.
Indiana businesses may also protect their business by also using an Indiana noncompete agreement.