Updated June 04, 2023
A Texas non-disclosure agreement allows an entity to protect its Trade Secrets when starting new business relationships. Signed by one (1) or two (2) parties, this document binds the signatories to maintain the secrecy of the Confidential Information as defined within the agreement, and it clearly states the consequences should they fail to sufficiently protect the Trade Secrets or should they purposely disclose them to a third party. The agreement can be terminated only if written notice is given by the owner of the Trade Secrets or if the Confidential Information no longer legally qualifies as Trade Secrets.
Laws – Title 6, Chapter 134A (Uniform Trade Secrets Act)
“Trade Secret” Definition
“Trade secret” means all forms and types of information, including business, scientific, technical, economic, or engineering information, and any formula, design, prototype, pattern, plan, compilation, program device, program, code, device, method, technique, process, procedure, financial data, or list of actual or potential customers or suppliers, whether tangible or intangible and whether or how stored, compiled, or memorialized physically, electronically, graphically, photographically, or in writing if:
(A) the owner of the trade secret has taken reasonable measures under the circumstances to keep the information secret; and
(B) the information derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable through proper means by, another person who can obtain economic value from the disclosure or use of the information.
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