{"id":541,"date":"2016-10-25T15:00:19","date_gmt":"2016-10-25T21:00:19","guid":{"rendered":"http:\/\/pkeating.com\/?p=541"},"modified":"2016-10-25T15:00:19","modified_gmt":"2016-10-25T21:00:19","slug":"nda-tolling-clauses","status":"publish","type":"post","link":"https:\/\/pkeating.com\/?p=541","title":{"rendered":"NDA Tolling Clauses"},"content":{"rendered":"<p><span style=\"color: #000000; font-family: Calibri;\">When using a non-disclosure agreement or non-use agreement (collectively, a \u201cNDA\u201d) to protect trade secrets, a good practice is to include a tolling clause in the contract to extend the life of the NDA if the restricted party breaches the contract.<\/span><span style=\"color: #000000; font-family: Calibri;\">\u00a0 <\/span><\/p>\n<p><span style=\"color: #000000; font-family: Calibri;\">Imagine a plaintiff who files a theft of trade secrets claim against a defendant who continuously violates a NDA.<\/span><span style=\"color: #000000; font-family: Calibri;\">\u00a0 <\/span><span style=\"color: #000000; font-family: Calibri;\">If the lawsuit takes several years to complete, the NDA might expire before the plaintiff obtains a judgment.<\/span><span style=\"color: #000000; font-family: Calibri;\">\u00a0 <\/span><span style=\"color: #000000; font-family: Calibri;\">The defendant would then argue that the plaintiff is not entitled to an injunction prohibiting the defendant\u2019s further use or disclosure of the trade secrets because the NDA expired.<\/span><span style=\"color: #000000; font-family: Calibri;\">\u00a0 <\/span><span style=\"color: #000000; font-family: Calibri;\">After all the defendant asserts, \u201cRegardless of whether I breached the NDA, I am entitled to use the trade secrets once the contractual restrictions expire.\u201d<\/span><\/p>\n<p><span style=\"color: #000000; font-family: Calibri;\">To avoid this situation, include language in a NDA stating that the term of the NDA will be extended for the amount of time that the restricted party breaches the contract.<\/span><\/p>\n<div class=\"twttr_buttons\"><div class=\"twttr_followme\">\n\t\t\t\t\t\t<a href=\"https:\/\/twitter.com\/@_PatrickKeating\" class=\"twitter-follow-button\" data-show-count=\"false\" data-size=\"default\"  data-show-screen-name=\"false\"  target=\"_blank\">Follow me<\/a>\n\t\t\t\t\t<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>When using a non-disclosure agreement or non-use agreement (collectively, a \u201cNDA\u201d) to protect trade secrets, a good practice is to include a tolling clause in the contract to extend the life of the NDA if the restricted party breaches the contract.\u00a0 Imagine a plaintiff who files a theft of trade secrets claim against a defendant [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":146,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[8],"tags":[],"jetpack_featured_media_url":"https:\/\/i1.wp.com\/pkeating.com\/wp-content\/uploads\/2014\/10\/Confidentiality-Agreement-Small-e1413139488422.jpg?fit=240%2C319&ssl=1","jetpack_publicize_connections":[],"jetpack_shortlink":"https:\/\/wp.me\/p52Eew-8J","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/pkeating.com\/index.php?rest_route=\/wp\/v2\/posts\/541"}],"collection":[{"href":"https:\/\/pkeating.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pkeating.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pkeating.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pkeating.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=541"}],"version-history":[{"count":1,"href":"https:\/\/pkeating.com\/index.php?rest_route=\/wp\/v2\/posts\/541\/revisions"}],"predecessor-version":[{"id":542,"href":"https:\/\/pkeating.com\/index.php?rest_route=\/wp\/v2\/posts\/541\/revisions\/542"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pkeating.com\/index.php?rest_route=\/wp\/v2\/media\/146"}],"wp:attachment":[{"href":"https:\/\/pkeating.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pkeating.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pkeating.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}