An Iowa non-disclosure agreement must meet certain requirements in order to be legally enforceable. Iowa non-disclosure agreements must be realistic in its scope; it must be thoroughly defined; it must only as broad as necessary; and it must be specific.
The State of Iowa has specific laws that regulate the use of NDAs: IA Code § 550 (through 2013).
Since the purpose of this document is to help businesses protect their trade secrets, it’s important for anyone using this document to understand how the term “trade secrets” is defined. According to IA Code § 550.2 (through 2013), a trade secret is defined as information such as a formula, pattern, compilation, program, device, method, technique, or process that isn’t known to the general public and isn’t easily discernible to others in business. This information must also carry its own potential or actual economic value. The business must take reasonable measures to keep that information private.
In addition to regulating NDAs and defining trade secrets, IA Code § 550 (through 2013) also outlines the type of damages a business may be entitled to receive if an employee or contractor violates the agreement. It also discusses how secrecy should be preserved as well as the statute of limitations.
Iowa businesses using an NDA should also consider the use of an Iowa noncompete agreement to better protect their economic standing as a business.