The Pennsylvania non-disclosure agreement (NDA), or confidential disclosure agreement, is a legal document signed between two or more parties that forms an obligation for the parties not to share the exchanged information with the public without the previous authorization of other parties that signed the NDA.
What is a Trade Secret in Pennsylvania?
A trade secret in Pennsylvania is certain confidential information about the operation and organization of the business that is considered to be the business’s competitive advantage on the market and is, for that reason, not shared with the general public.
Types of Non-Disclosure Agreements
The two main types of non-disclosure agreement forms are unilateral and mutual NDAs. The difference between these two types lies in which party takes on the responsibility of keeping the shared information confidential.
The unilateral NDA forms an obligation for the party signing the document, while the mutual NDA forms an obligation for both parties signing the document and the party issuing it.
Legal Requirements for Pennsylvania Non-Disclosure Agreement
In this section, you can see the state laws and requirements for the Pennsylvania non-disclosure agreement template:
Mandatory Requirements
Statutes: § 5301 to 5308
Definitions: § 5302
Statute of limitations: An action under this chapter for misappropriation must be brought within three years after the misappropriation was discovered. (§ 5307)
What Can a Non-Disclosure Agreement Be Used For in Pennsylvania?
The Pennsylvania non-disclosure agreement can be used in various situations based on the type of shared information, their confidentiality level, and more.
Here are the most common reasons parties choose to draft a non-disclosure agreement:
NDA Uses and Scopes
Protection of business and trade secrets: The parties can create the NDA to protect the information they are sharing with each other during their business interactions. The NDA can be signed with suppliers, vendors, business partners, and other third parties.
Protection of information after litigation: The parties can use the NDA to protect the confidentiality of their litigation settlement agreement.
Protection of information during research collaborations: The NDA can also be used by the parties that want to protect the findings during the research process or the results of the research.
Protection of information during employment: The NDA can also be signed with employees with the goal of protecting all the confidential information they get access to during their employment period.
Pennsylvania Non-Disclosure Agreement FAQ
Yes, the NDA is a legally binding document in Pennsylvania. It becomes legally binding the moment all the parties that take on the confidentiality obligation sign it.
No, the Pennsylvania NDA doesn’t need to be signed in front of a witness to be valid. However, if the parties want to provide an additional level of authentication for the document, they can include the witness signatures.
Yes, you can decline to sign the NDA in Pennsylvania. However, before declining to sign, you should keep in mind that this action might affect the relationship between you and the party issuing the NDA.