Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 06 DECEMBER 2021

NDA: An Effective Way To Protect Confidential Information

Sheppard
Sheppard
Contributor
Sheppard

Sheppard

Businesses turn to Sheppard to deliver sophisticated counsel to help clients move ahead. With more...

View firm profile
Explore more from Sheppard

A recent California Court of Appeals decision found nominal damages could be awarded for an employee's breach of a non-disclosure agreement ("NDA"), even if no actual harm was done to the employer.

United StatesIntellectual Property
Luke Bickel
Luke Bickel
Author LinkedIn connections

A recent California Court of Appeals decision found nominal damages could be awarded for an employee's breach of a non-disclosure agreement ("NDA"), even if no actual harm was done to the employer. An award of nominal damages for breach of an NDA may be important for companies seeking to protect confidential information and trade secrets for two reasons: (1) this may give rise to an award of litigation costs, and (2) may also support a permanent injunction ruling preventing the former employee from any further possession or use of the protected information.

Under California Civil Code section 3360, "[w]hen a breach of duty has caused no appreciable detriment to the party affected, he may yet recover nominal damages." In the partially published case, Elation Sys. v. Fenn Bridge LLC, the appellate court confirmed the application of Section 3360 to a breach of a non-disclosure agreement despite the jury's finding of no actual damages. (Nov. 22, 2021) A159749 (Cal.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

UMG v. DistroKid: When AI Becomes A Consumer Protection Issue

Universal Music Group's lawsuit against DistroKid raises a critical question about AI disclosure in consumer markets: when does the use of artificial intelligence become material information that must be disclosed to consumers? The case centers on allegations that DistroKid distributed mass-generated AI music while creating the impression it was created by legitimate human artists, potentially violating existing consumer protection laws even without specific AI disclosure requirements.
United StatesIntellectual Property
Frankfurt Kurnit Klein & Selz PC
Frankfurt Kurnit Klein & Selz PC
Article

The Trademark Scam Field Guide: Look-Alike Filing Sites, Fake USPTO Notices, And How To Get Out If You’ve Been Caught

A business decides to file a trademark. Someone on the team searches for a familiar online legal-services brand, clicks the first result, and lands on a site with a similar-sounding name, a polished design, five-star reviews, and a low flat fee. The application gets filed. Months later the business learns the “service” was not who they thought it was, the filing was signed by someone with no authority to sign it, and the USPTO has suspended the application along with hundreds or thousands of others from the same shop.
United StatesIntellectual Property
Harness IP
Harness IP
Article

PTAB/USPTO Update - October 2026

The USPTO has released new templates and guidance for AIA trial proceedings, announced key appointments including a Chief AI Officer, and published updated procedures for patent applications and subject matter eligibility declarations. Director Squires delivered multiple addresses emphasizing the constitutional importance of intellectual property rights while the agency expanded its community engagement efforts and international collaboration through WIPO's Global IP Assignment Platform pilot program.
United StatesIntellectual Property
WilmerHale
WilmerHale
Article

U.S. Government Backs Fair Use For AI Training In OpenAI Copyright Litigation

The U.S. government has filed a Statement of Interest of the United States of America under 28 U.S.C. § 517 in the Southern District of New York multidistrict litigation over OpenAI’s use of copyrighted works to train large language models. The filing appears to be the federal government’s first direct intervention in the wave of artificial intelligence (AI) training copyright cases, and it advises the court to treat model training (separate from use of AI to generate outputs) on copyrighted text standing alone as a highly transformative fair use under current law.
United StatesIntellectual Property
Lowenstein Sandler LLP
Lowenstein Sandler LLP
Article

FDA Balances Peptide Policy With Enforcement Against Unlawful Peptide Sellers

Over the past year, industry has had a front row seat as the Food and Drug Administration (“FDA” or the “Agency”) decides just how much leeway it wants to afford the manufacture, marketing, and sale of peptide products, and just where it wants to draw the line. Despite the recent decision of FDA’s Pharmacy Compounding Advisory Committee (“PCAC”) to recommend a number of peptides for inclusion on the 503A bulks list process — a move that represents a potentially more permissive stance toward peptide regulation, at least in terms of what can and cannot be compounded under 503A...
United StatesFood, Drugs, Healthcare, Life Sciences
Sheppard
Sheppard
Article

The Ninth Circuit Affirms Dismissal Of DMCA CMI Removal Claim Against AI Code Generator – Output Is A New Work Not A Copy Of Training Data

There was a significant ruling in the Doe v. Github case involving training of AI code generator models on open source. The United States Court of Appeals for The Ninth Circuit affirmed the district court ruling dismissing part of an action brought under the Digital Millennium Copyright Act (“DMCA”) by programmers against GitHub, Inc., and other defendants. The issues centered on whether defendants removed copyright management information (CMI) from content used to train the AI code generator models.
United StatesIntellectual Property
Sheppard
Sheppard
Article

Massachusetts Issues Guidance On Data Center Development Under Executive Order 658

Massachusetts Governor Maura Healey has issued Executive Order 658, establishing comprehensive permitting and regulatory standards for data centers exceeding 25 MW of peak electricity demand. The Order mandates community benefits agreements, clean energy procurement protocols, and coordination across multiple state agencies to ensure responsible development that protects ratepayers, communities, and the environment. This action positions Massachusetts alongside other states implementing stricter oversight o
United StatesEnergy and Natural Resources
Sheppard
Sheppard
Article

Fintech Agrees To Acquire National Bank Partner For $590 Million

A publicly traded fintech company has announced a $590 million acquisition of its longtime national bank partner, marking a strategic shift from the traditional bank-partnership model to direct ownership of a national bank charter. The transaction, expected to close in the first half of 2027 pending regulatory approvals, would make the fintech a bank holding company while consolidating its banking activities and eliminating certain sponsor-bank fees. This deal represents a faster alternative to pursuing a d
United StatesFinance and Banking
Sheppard
Sheppard