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A Pennsylvania non-disclosure agreement (NDA), also known as a confidentiality agreement, may be a legally binding contract signed by new employees or contractors that enables a business to protect their trade secrets or business interests.
Pennsylvania law says that the employment relationship creates certain duties owed to the employer as a condition of employment. One of those duties is not revealing sensitive information or trade secrets.
A Pennsylvania non-disclosure agreement is often included as part of an employment contract or employment agreement. If you're a business entity who wants to write an NDA or if you're an employee or independent contractor being asked to sign one, you should get legal advice from a law firm that practices employment law.
Pennsylvania adopted the Uniform Trade Secrets Act. This Act, found at 12 PA Cons Stat §§ 5301 through 5308 sets out the scope of how non-disclosure agreements are treated as well as how certain key terms are defined under the law.
Pennsylvania’s Uniform Trade Secrets Act also explains the types of damages that a business may be entitled to receive if someone violates the NDA, how the secrecy of the information may be preserved , and the statute of limitations on the agreement.
For more protection of trade secrets, use this form together with a Pennsylvania non-compete agreement .
Pennsylvania non-disclosure agreements are important contracts that protect the best interests of a business: its trade secrets. Under 12 PA Cons Stat § 5302 , a trade secret is defined as information such as a formula, drawing, pattern, compilation such as a customer list, a program, a device, a method, a technique, or a process with its own actual or potential financial value.
This value comes from the fact that it isn’t information that is generally known to the public and it isn’t something that another business would discover in the normal process of business that they could use for themselves. The business claiming the information as a trade secret must take reasonable steps to keep the information private.
To write a basic Pennsylvania non-disclosure agreement, you should first review the Pennsylvania Uniform Trade Secrets Act. This will help you better understand what can and cannot be covered by a non-disclosure agreement. However, this is not a substitute for legal advice. To ensure the enforceability of your NDA, you should get legal advice. You can save your template in Microsoft Word (.docx) for easy editing.
The Disclosing Party and Receiving Party must sign the document as well as print their names. The signatures should be dated. The parties should receive a copy of the finalized NDA for their records.
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