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A Massachusetts non-disclosure agreement (NDA), also known as a confidentiality agreement, may be a legally binding document between a business and its employees or independent contractors. The purpose of a Massachusetts non-disclosure agreement is to prevent employees or contractors from giving business secrets to competitors or the public by the use of restrictive covenants.
For a Massachusetts non-disclosure agreement to be legally enforceable, you should make sure that it is both specific and reasonable and that it complies with Massachusetts law. It is often part of an employment contract package.
Before drafting an NDA or signing one, you should seek legal advice from a law firm that handles employment law matters.
Non-disclosure agreements and trade secrets are governed by two specific sets of statutes in Massachusetts. In Mass. Gen. Laws. ch. 266, § 30 , one may find the penalties for stealing trade secrets. In Mass. Gen. Laws, ch. 93, § 42A defines the relief that a business may be entitled to receive if someone violates their NDA.
To ensure that the NDA complies with Massachusetts laws, businesses need to be clear about what information they consider a trade secret. It is also helpful for a business to do what they reasonably can to keep that information private.
Another important contract that should be used with this NDA is a Massachusetts non-compete agreement .
Because the purpose of an NDA is to protect confidential information, it is important for those using this non-disclosure agreement to understand how the State of Massachusetts defines the term “trade secret.” This information is found in Mass. Gen. Laws. ch. 266, § 30 .
A trade secret includes tangible or intangible information that may or may not be kept electronically. It could be evidence or records of something scientific, technical, related to merchandising, production, or management information. It could also be a design, process, procedure, formula, invention, or improvement.
To write a Massachusetts non-disclosure agreement, read the Massachusetts General Laws that cover trade secrets so that you understand the way that this sensitive information is covered. However, this is no substitute for obtaining legal advice from a lawyer. A lawyer can help ensure that your NDA is enforceable and able to protect your trade secrets.
You can save your NDA template in Microsoft Word (.docx) for easier editing.
At the end of the agreement, there should be space for the parties to sign their names. Their names should also be printed as well as their roles from the agreement (Disclosing Party and Receiving Party). The parties should date their signatures. Finally, they should both receive a copy of the executed contract for their records.
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