Download Colorado Non-Disclosure Agreement Template [PDF]

The Colorado non-disclosure agreement (NDA), or confidential disclosure agreement, is a legally binding document designed to protect certain information that is considered business or trade secrets, intellectual property, or proprietary information by the parties signing it.

What is a Trade Secret in Colorado?

In Colorado, a trade secret is a certain method, practice, or other type of information that is considered confidential and crucial to a certain business and its success and position on the market.

Types of Non-Disclosure Agreements

This section presents two main types of non-disclosure agreement forms based on who takes on the obligation of keeping the shared information confidential.

Two Types of Non-Disclosure Agreements

Unilateral NDA: Here, only one party is under an obligation to keep the shared information confidential. It is mostly used between companies and their employees to protect the information they come across during their employment period.
Mutual NDA: This type of NDA creates an obligation for all the parties that sign the document.

Legal Requirements for Colorado Non-Disclosure Agreement

This section outlines the state requirements for the non-disclosure agreement template in Colorado:

Mandatory Requirements

Statutes: § 7-74-101 – 7-74-110
Definitions: § 7-74-102
Statute of limitations: An action for misappropriation of a trade secret shall be brought within three years after the misappropriation is discovered. (§ 7-74-107)

What Can a Non-Disclosure Agreement Be Used For in Colorado?

The Colorado non-disclosure agreement can be used in various situations, depending on the type of information the parties want to protect.

Here are some of the most common situations in which parties decide to use the NDA:

NDA Uses and Scopes

Protection of business information: The parties draft this type of NDA to protect the business and trade sectors during their interaction. It can be used in negotiations with business partners, suppliers, vendors, and others.
Protection of information during employment: The business entities choose to issue an NDA to protect the confidential information their employees have access to during their employment period.
Protection of information during research collaborations: The parties can use this type of NDA to protect the information during the research process as well as the research results.
Protection of information after the litigation: The parties can use this type of NDA to protect the details of their litigation settlement agreement.

Colorado Non-Disclosure Agreement FAQ

Yes, the NDA is a legally binding document in Colorado. It becomes legally binding the moment all of the parties taking on the obligation of confidentiality sign it.
No, the Colorado NDA doesn’t have to be signed in front of witnesses. However, the parties can always decide to include witness signatures in the NDA to additionally confirm the authenticity of the document.
Yes, you can decline an NDA in Colorado. However, before doing so, you should carefully consider the consequences this action might have in terms of the relationship between you and the party issuing the NDA.