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Confidential Disclosure Agreement for the United States

Confidential Disclosure Agreement Template for United States

A Confidential Disclosure Agreement is a legally binding contract governed by United States federal and state laws, designed to protect proprietary and confidential information shared between parties. The agreement establishes the terms and conditions under which confidential information will be shared, used, and protected, including obligations for maintaining secrecy, permitted uses, and consequences of breach. It incorporates provisions from various U.S. laws including the Defend Trade Secrets Act and state-specific trade secret protection laws.

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What is a Confidential Disclosure Agreement?

A Confidential Disclosure Agreement (CDA) is essential when parties need to share sensitive information while maintaining its confidentiality. This document is commonly used in business negotiations, potential partnerships, employment relationships, or any situation where proprietary information needs protection. Under U.S. law, the agreement provides legal remedies if confidential information is misused or disclosed without authorization. The CDA defines what constitutes confidential information, outlines permitted uses, establishes security measures, and specifies the duration of confidentiality obligations. It's particularly crucial in protecting trade secrets and intellectual property, and can be enforced through both federal and state courts in the United States.

What sections should be included in a Confidential Disclosure Agreement?

1. Parties: Identification of the disclosing and receiving parties, including full legal names and addresses

2. Background: Purpose of the agreement and context for the confidential disclosure relationship

3. Definitions: Key terms including 'Confidential Information', 'Representatives', 'Purpose', and other relevant definitions

4. Confidentiality Obligations: Core obligations regarding protection and non-disclosure of confidential information

5. Permitted Uses: Specific allowed uses of confidential information and scope of permitted disclosure

6. Term and Termination: Duration of agreement, survival provisions, and termination rights

7. Return of Information: Requirements for returning or destroying confidential information upon termination

8. Governing Law: Applicable jurisdiction, venue, and choice of law provisions

What sections are optional to include in a Confidential Disclosure Agreement?

1. Non-Solicitation: Provisions preventing poaching of employees or clients, typically used when sharing sensitive business relationship information

2. Non-Competition: Restrictions on competitive activities, included when sharing business strategies or trade secrets

3. Assignment Rights: Rights to transfer obligations under the agreement, important when parties may undergo corporate changes

4. Residual Rights: Provisions regarding retained knowledge and information, particularly relevant in technology contexts

What schedules should be included in a Confidential Disclosure Agreement?

1. Description of Confidential Information: Detailed list or categories of specific confidential materials covered by the agreement

2. Authorized Representatives: List of individuals or roles authorized to receive and handle confidential information

3. Security Procedures: Specific protocols and requirements for handling and protecting confidential information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Clauses


















Industries

Defend Trade Secrets Act (DTSA): Federal law enacted in 2016 that provides a federal cause of action for trade secret misappropriation and includes specific requirements for whistleblower immunity provisions

Economic Espionage Act: Federal law from 1996 that criminalizes trade secret theft and economic espionage

Uniform Trade Secrets Act (UTSA): Model law adopted by most states that provides framework for trade secret protection and enforcement at state level

State Employment Laws: Various state-specific regulations governing employment relationships, non-compete agreements, and confidentiality obligations

Whistleblower Protection Laws: Federal and state laws protecting individuals who report violations of law, including requirements for specific immunity notice in NDAs

State Contract Laws: State-specific regulations governing contract formation, enforcement, and remedies, including consideration requirements and statutes of limitation

HIPAA: Federal law protecting confidential healthcare information, crucial for NDAs involving medical data

Gramm-Leach-Bliley Act: Federal law governing the protection of confidential financial information

Sherman Antitrust Act: Federal law prohibiting anticompetitive business practices, relevant for ensuring NDAs don't create illegal restraints on trade

Federal Patent Act: Law governing patent rights and protection, relevant for NDAs covering potentially patentable information

Federal Copyright Act: Law protecting original works of authorship, important for NDAs covering creative or technical documentation

Federal Trademark Laws: Laws protecting brands and marks, relevant for NDAs covering brand-related confidential information

Jurisdictional Case Law: Recent court decisions and precedents regarding NDA enforcement and interpretation in relevant jurisdictions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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