Breach of Non Disclosure Agreement Cases – What You Need to Know

A non-disclosure agreement (NDA) is a legal contract that binds two parties, usually an employer and an employee, to keep certain confidential information private. NDAs are often used in business to protect trade secrets, client lists, financial data, and other sensitive information.

However, when an NDA is breached, serious legal consequences can arise. Breaching an NDA can result in a lawsuit, damages, and even criminal charges. Let`s take a look at some high-profile breach of NDA cases and what they can teach us about the importance of honoring these agreements.

Case 1 – Uber vs. Waymo

In 2017, Waymo, the self-driving car subsidiary of Alphabet (Google`s parent company), filed a lawsuit against Uber for allegedly stealing trade secrets related to autonomous vehicle technology. Waymo claimed that a former employee, who had signed an NDA, had stolen more than 14,000 confidential files before leaving the company to join Uber. The case was eventually settled out of court, with Uber paying Waymo $245 million in equity.

Lesson – NDAs should not be taken lightly, especially when it comes to trade secrets. Companies should take steps to ensure that their confidential information is adequately protected and that employees understand the seriousness of violating an NDA.

Case 2 – Stormy Daniels vs. Donald Trump

In 2018, adult film actress Stormy Daniels sued President Donald Trump for allegedly breaching an NDA related to a $130,000 hush money payment he made to her prior to the 2016 presidential election. Daniels claimed that the NDA prevented her from speaking publicly about an affair she had with Trump in 2006. The case was eventually dismissed, with Daniels ordered to pay Trump`s legal fees.

Lesson – NDAs can be used to silence individuals and prevent them from disclosing information that they may feel is in the public interest. However, this can lead to legal challenges and negative public perception. Companies should consider the ethical implications of using NDAs to silence whistleblowers or victims of harassment.

Case 3 – Steve Jobs vs. Nick Ciarelli

In 2005, Apple CEO Steve Jobs threatened to sue teenager Nick Ciarelli for publishing insider information about the company on his website, Think Secret. The website had published details about a forthcoming Apple product, which Jobs claimed was a breach of Ciarelli`s NDA. The case was settled out of court, with Ciarelli agreeing to shut down the website and not publish further information about Apple.

Lesson – NDAs can apply to individuals who are not directly employed by a company, such as contractors or freelancers. Companies should make sure that all individuals who have access to confidential information sign an NDA and understand the terms.

In conclusion, NDAs exist to protect confidential information and trade secrets. However, they should not be used to silence individuals or prevent them from disclosing information in the public interest. Companies should take steps to ensure that employees and contractors understand the seriousness of NDAs and the potential consequences of violating them. By doing so, they can protect their valuable assets while also upholding ethical standards.