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Trade Secrets

What can you do when confidential information is disclosed or misused?

An NDA claim is a contract claim, so the agreement governs - but the practical obstacle is usually proof of loss rather than proof of breach. Disclosure is often demonstrable while the resulting damage is not, which is why liquidated damages and injunctive relief provisions matter so much, and why the parallel claim in breach of confidence, which does not depend on a contract at all, is frequently the stronger one.

What to do next

  1. Confirm the information was actually confidential under the agreement

    Most NDAs define confidential information and carve out material that is public, independently developed, or received lawfully from a third party. The carve-outs are where these claims are usually defended, so check them before asserting.

  2. Check the term and the marking requirements

    Many NDAs expire, and some only protect information marked or confirmed as confidential in writing. Both are routinely overlooked at the time of disclosure and become decisive later.

  3. Preserve the evidence you lawfully hold

    The agreement itself, the record of what was disclosed and when, and evidence of the misuse. Use only records and systems your organisation owns or can lawfully obtain - do not attempt to access the other party's accounts, devices or systems.

  4. What to prepare

    The NDA and any related agreements, a schedule of what was disclosed with dates, evidence of the breach, what steps you took to keep the information confidential, and the commercial harm you can actually evidence - lost contracts, lost pricing advantage, remediation cost.

  5. Possible legal pathways

    A demand letter with undertakings, an injunction to restrain further use or disclosure, a claim for breach of contract, and a parallel claim in breach of confidence which does not require a contract. Where the recipient was a departing employee, see the separate page on confidential information taken on departure - the analysis overlaps but the evidence differs.

Frequently asked questions

Is an NDA actually enforceable?

Generally yes as a contract, though overly broad or indefinite obligations can be read down. The carve-outs and the term are usually more decisive than enforceability.

What if the information became public?

Most NDAs exclude information that enters the public domain other than through breach. If the recipient made it public, the carve-out usually does not protect them.

Do I need to prove loss?

For damages, generally yes - and it is the hardest element. Liquidated damages clauses and injunctive relief are the practical answers, which is why those provisions matter at drafting.

Can I get an injunction?

Where use or disclosure is ongoing and you act promptly. Delay undermines the application independently of the merits.

What if there was no NDA?

Breach of confidence can still apply where information was communicated in circumstances importing an obligation of confidence. A contract strengthens the claim; it is not always essential.

This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.

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