A New Mexico non-disclosure agreement is a legally binding document signed by contractors or employees. A New Mexico non-disclosure agreement may cover more than trade secrets. It can also cover client lists, sales information, and other data pertinent to the success of your business.
New Mexico’s Uniform Trade Secrets Act, NM Stat §§ 57-3A-1 through 57-3A-7 (2015), provides information about how trade secrets are defined and governs NDAs.
Since the purpose of an NDA is to protect trade secrets, businesses should understand how New Mexico’s Uniform Trade Secrets Act defines “trade secret.” NM Stat § 57-3A-2 (2015) defines a trade secret as information such as a formula, pattern, compilation, program, device, method, technique, or process. This information must have its own actual or potential financial value because it’s not information that is readily known by members of the public. It’s also not information that other businesses could figure out with relative ease and use for their own benefit. Any information that is claimed as a trade secret must be reasonably protected by the business.
The New Mexico Uniform Trade Secrets Act also explains how businesses can preserve secrecy of the information as well as what damages businesses may be entitled to receive if the NDA is violated. An NDA should include a reasonable time limit and geographical restriction to be enforced by a court of law.
Because the business environment continues to increase its competitive nature, businesses should also use a New Mexico noncompete agreement to better protect their competitive edge.