What Happens When an NDA is Broken
If the terms of an NDA are broken, the party responsible may be held liable for damages incurred by the injured party. Because NDAs are civil contracts, breaking them isn’t a crime. However, they can be enforced by suing the perpetrator for financial damages and legal costs.
Trade Secrets – Unlike other confidential information, trade secrets are protected under the law, and sharing or misusing them may be classified as a crime.
Sample
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NOTICE OF BREACH OF NDA
From
[SENDER NAME]
[STREET ADDRESS]
[CITY, STATE, ZIP CODE]
Date [MM/DD/YYYY]
Re: Unauthorized Disclosure of Confidential Information
Dear [RECIPIENT NAME],
On [MM/DD/YYYY], you signed a Non-Disclosure Agreement (NDA) which we have reason to believe has been violated, referred to as the “Agreement.”
The Agreement mentioned information that was to be kept confidential by you, referred to as “Confidential Information.” It has come to our attention that some or all of said information has been released to a third party. This constitutes a breach and direct violation of the Agreement.
Therefore, you are required to immediately:
- Desist from further using or disclosing any or all of the Confidential Information mentioned in the Agreement.
- Deliver to us any materials currently in your possession or with any agent, employee, representative, affiliate, or individual that you have given copies.
- Deliver to us a written undertaking that you will desist forthwith from using or disclosing the Confidential Information, other than what is in accordance with the Agreement, and seek our express written consent for any future use or disclosure.
We expect your acknowledgment of this letter and your response to our requests by [MM/DD/YYYY]. Failure to respond by this date shall result in us seeking legal action.
Sincerely,
________________________
[PRINT NAME]