Arkansas Non-Disclosure Agreement
The Arkansas Non-Disclosure Agreement, also called a “Confidentiality Agreement,” is a contract used to keep a company’s trade secret from landing in the wrong hands. It is used when an individual will be learning a secret that is considered valuable to the company, such as a recipe or business plan. The individual or company learning the secret (the “Receiving Party”) can be sued by the company sharing the information (the “Disclosing Party”) or faced with injunctive relief issued in court if the secret is disclosed. Below is information regarding Arkansas’ Trade Secret Law and a how-to for completing the NDA.
A number of mandatory components must be evident in the NDA in order for it to be considered valid in the eyes of the law. The following NDA checklist can be used to ensure all necessary components of an Arkansas NDA are present to lawfully execute it.
|Mandatory Components in an NDA (check once completed)|
|☐ The date the contract will come into effect|
|☐ The name and address of the Disclosing party|
|☐ The name and address of the Receiving party|
|☐ The signature and printed name of the Disclosing party|
|☐ The signature and printed name of the Receiving party|
|☐ The date the contract was executed|
Trade Secret Law
Arkansas’ interpretation of the Federal Uniform Trade Secret Act differs slightly than the general law published in 1979; a brief outline of Arkansas’ Theft of Trade Secrets Subchapter is below:
- A.C.A. § 4-75-601: Provides the definitions for commonly used words in Subchapter 6 (Theft of Trade Secrets).
- A.C.A. § 4-75-602: Explains how Subchapter 6 affects other laws.
- A.C.A. § 4-75-603: States the timeframe for bringing a case of misappropriation in Arkansas i.e. three (3) years.
- A.C.A. § 4-75-604: Details the situations in which Injunctive Relief will/can be ordered by the court.
- A.C.A. § 4-75-605: Conveys the steps that the court will take to ensure trade secrets are preserved.
- A.C.A. § 4-75-606: Notes that the damages caused by misappropriation that the complainant can recover.
- A.C.A. § 4-75-607: Highlights the situations when the court will cover the winning party’s attorney fees.
How to Write in PDF & Word
Step 2 – At the top of the form, enter the Date (enter the full year 20xx) the contract will be in effect.
Step 3 – Directly after entering the date, write the name and full address of the individual or company sharing the secret(s). This is also called the “Disclosing Party.” On the next line, record the full name and address of the individual or company learning the secret(s).
Step 4 – After both parties have diligently read through the entire document and approve of the terms laid out, both the Disclosing Party and the Receiving Party should record their full printed names, titles of their respective companies (if applicable), the dates they completed the form, and their signatures. Once both signatures are recorded, the contract will be active.