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WHAT HAPPENS IF THE
CONFIDENTIAL INFORMATION
 (PROTECTED BY AN NDA) IS
        LEAKED?
WHAT IS CONFIDENTIAL INFORMATION?

   Except       as      otherwise       provided    in      the
    Agreement,        Confidential    Information   refers    to
    in-form-a-tion that
       is maintained in confidence by or on behalf of a party,
        referred to as a Disclosing Party; and

       (ii) disclosed to other otherwise accessed, pursuant to
        the Agreement by another party, referred to as
        a Receiving Party.
WHAT TO DO IF CONFIDENTIAL INFORMATION PROTECTED
BY AN NDA IS LEAKED?


 CONTACT       AN ATTORNEY

 Unfortunately,       enforcing   an     NDA       usually
 requires       hiring    an   attorney       and     filing
 a   lawsuit,     an     unpleasant     and    expensive
 proposition.      An    experienced      attorney     can
 minimize your risks, preserve your trade secret
 rights and provide a realistic perspective of your
 chances in the dispute.
   ACQUIRE EVIDENCE
   Whenever trade secrets are lost you will need to investigate,
    or hire an investigator, to learn as much as possible about
    the trade secrecy loss. These investigations commonly
    require surveillance of employees. Investigation of the theft is
    crucial. Also, if you make public statements that contain
    improvable accusations of trade secret theft and you injure
    that person's reputation, you may be liable for defamation.
    When gathering evidence, you will need information about:
       The means of misappropriation
       Use of the trade secret.
       Who is involved in the chain of misappropriation?
    DETERMINE WHAT LEGAL CLAIMS TO MAKE
   One legal claim you'll make is that the person has
    committed breach of contract. In addition, you and your
    attorney must determine whether you have other grounds
    on which to sue the perpetrators. Each one you come up
    with may provide you with a separate remedy and separate
    damages. Here are some possibilities:
       Misappropriation of trade secrets.
       Breach of fiduciary duty.
       Copyright infringement.
       Conversion.
       Patent infringement.
       Trespass.
   Criminal prosecution: Several states and the governments
    have passed laws that make the unauthorized disclosure, theft
    or use of a trade secret a crime. Under these laws the
    government, not private businesses, arrests the perpetrators
    and brings criminal charges
   DETERMINE WHAT YOU LOST AND WHAT YOU WANT
   Potential remedies can be used as leverage to end the dispute
    before a lawsuit is filed. Potential remedies include:
       INJUNCTIONS
           An injunction is a court order directed at those who have stolen your
            secrets. Asking for an injunction is common, since the primary goal of an
            NDA is to keep information secret.
   COMPENSATORY AND PUNITIVE DAMAGES

   If you suffer a financial loss as a result of a breach of an
    NDA, you may be able to get a court to award money
    damages to you. Your damages are measured by either:
       the profits a competitor earned by using the trade secret, or

       the profits you lost due to the improper trade secret leak.

   If the person or company you're suing acted with spite or ill
    will or a disregard for the probable injury, courts in many
    states can impose punitive damages. These are damages
    awarded to you for the purpose of punishing the wrongdoer
    and providing an example to other would-be trade secret
    thieves.

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WHAT HAPPENS IF THE CONFIDENTIAL INFORMATION (PROTECTED BY AN NDA) IS LEAKED?

  • 1. WHAT HAPPENS IF THE CONFIDENTIAL INFORMATION (PROTECTED BY AN NDA) IS LEAKED?
  • 2. WHAT IS CONFIDENTIAL INFORMATION?  Except as otherwise provided in the Agreement, Confidential Information refers to in-form-a-tion that  is maintained in confidence by or on behalf of a party, referred to as a Disclosing Party; and  (ii) disclosed to other otherwise accessed, pursuant to the Agreement by another party, referred to as a Receiving Party.
  • 3. WHAT TO DO IF CONFIDENTIAL INFORMATION PROTECTED BY AN NDA IS LEAKED?  CONTACT AN ATTORNEY  Unfortunately, enforcing an NDA usually requires hiring an attorney and filing a lawsuit, an unpleasant and expensive proposition. An experienced attorney can minimize your risks, preserve your trade secret rights and provide a realistic perspective of your chances in the dispute.
  • 4. ACQUIRE EVIDENCE  Whenever trade secrets are lost you will need to investigate, or hire an investigator, to learn as much as possible about the trade secrecy loss. These investigations commonly require surveillance of employees. Investigation of the theft is crucial. Also, if you make public statements that contain improvable accusations of trade secret theft and you injure that person's reputation, you may be liable for defamation. When gathering evidence, you will need information about:  The means of misappropriation  Use of the trade secret.  Who is involved in the chain of misappropriation?
  • 5. DETERMINE WHAT LEGAL CLAIMS TO MAKE  One legal claim you'll make is that the person has committed breach of contract. In addition, you and your attorney must determine whether you have other grounds on which to sue the perpetrators. Each one you come up with may provide you with a separate remedy and separate damages. Here are some possibilities:  Misappropriation of trade secrets.  Breach of fiduciary duty.  Copyright infringement.  Conversion.  Patent infringement.  Trespass.
  • 6. Criminal prosecution: Several states and the governments have passed laws that make the unauthorized disclosure, theft or use of a trade secret a crime. Under these laws the government, not private businesses, arrests the perpetrators and brings criminal charges  DETERMINE WHAT YOU LOST AND WHAT YOU WANT  Potential remedies can be used as leverage to end the dispute before a lawsuit is filed. Potential remedies include:  INJUNCTIONS  An injunction is a court order directed at those who have stolen your secrets. Asking for an injunction is common, since the primary goal of an NDA is to keep information secret.
  • 7. COMPENSATORY AND PUNITIVE DAMAGES  If you suffer a financial loss as a result of a breach of an NDA, you may be able to get a court to award money damages to you. Your damages are measured by either:  the profits a competitor earned by using the trade secret, or  the profits you lost due to the improper trade secret leak.  If the person or company you're suing acted with spite or ill will or a disregard for the probable injury, courts in many states can impose punitive damages. These are damages awarded to you for the purpose of punishing the wrongdoer and providing an example to other would-be trade secret thieves.