Updated June 04, 2023
A South Dakota non-disclosure agreement is used to protect confidential and proprietary information from being disclosed to business competitors. A signatory, in completing and signing the form, agrees to the placement of liability on their shoulders should they be found responsible for the unauthorized disclosure of the business entity’s Trade Secrets or other forms of Confidential Information. This agreement type is often presented to new hires as they will thereafter be given access to the employer’s Trade Secrets; information that, if made available to the public, would weaken the business and strengthen its competitors.
Laws – §§ 37-29-1 – 37-29-11 (Uniform Trade Secrets Act)
“Trade Secret” Definition
“Trade secret,” information, including a formula, pattern, compilation, program, device, method, technique, or process, that:
(i) Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and
(ii) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
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