Development and Protection of Trade Secret Law in NDA

Oct 13, 2025 by windailys.com 90 views

As a Result of the Law of the Achievement of One Party in the Non-Disclosure Agreement (Confidentiality Agreement) Which is Difficult to Prove the Truth

Introduction

The non-disclosure agreement (NDA), also known as a confidentiality agreement, is a written agreement that governs the disclosure and use of confidential information between two or more parties. In Indonesia, NDA is widely used in the business world to protect trade secrets, such as formulas, technology, and business strategies. However, the problem arises when there is a violation that is difficult to prove the truth. This can be seen in the case of PT. Basuki Pratama Engineering with PT. Hitachi Construction Machinery Indonesia.

Development and Protection of Trade Secret Law in NDA

In Indonesia, the law of NDA is governed by the Civil Code and the Commercial Code. The Civil Code regulates the general principles of contract law, including the concept of confidentiality and the protection of trade secrets. The Commercial Code, on the other hand, regulates the specific aspects of commercial transactions, including the use of NDA in business-to-business relationships.

The Importance of NDA in Protecting Trade Secrets

NDA plays a vital role in maintaining the smooth running of business by ensuring sensitive information security. The agreement allows parties to add additional clauses related to their rights and obligations to protect confidential information. This is important because it helps to prevent the unauthorized disclosure of confidential information, which can cause significant harm to the business.

Case Analysis of Default and Judge Decisions

The case of PT. Basuki Pratama Engineering vs. PT. Hitachi Construction Machinery Indonesia is a clear example of how difficult it is to prove the truth in the case of default. Cassation Decision Number 3305 K/PDT/2016 shows that the judge considers various aspects, such as evidence submitted by both parties, as well as expert witness statements. However, the difficulty of getting strong evidence of violations is a challenge in the judicial process.

The Challenges of Proving Default in NDA

Proving default in NDA can be challenging due to the lack of strong evidence. The judge will consider various factors, including the proposed evidence, provisions in NDA, and losses experienced by the disadvantaged party. However, the difficulty of getting strong evidence of violations is a significant obstacle in the judicial process.

Legal Consequences for Default and Judges' Considerations

Default in NDA generally occurs when one of the parties misuses confidential information without permission from the owner. As a result, confidential information owners have the right to demand compensation both material and immaterial.

The Legal Consequences of Default in NDA

The legal consequences of default in NDA can be severe. The judge will consider various factors, including the proposed evidence, provisions in NDA, and losses experienced by the disadvantaged party. The judge may order the defaulting party to pay compensation to the owner of the confidential information.

Judge's Consideration in Setting a Decision

In deciding on the case of NDA default, the judge will consider various factors, including:

*** Proposed Evidence:** Legitimate and strong evidence is very important in proving the occurrence of default. *** Provisions in NDA:** The judge will review the clauses listed in NDA to determine whether there is a violation of the agreement. *** Losses Experienced:** The judge will consider the losses experienced by the disadvantaged party due to default.

Efforts to Prevent Default in NDA

To minimize the risk of default in NDA, there are several things that can be done:

*** Clarity and Details in NDA:** The agreement must be formulated clearly and in detail, including all aspects of confidential information that will be protected, as well as the rights and obligations of each party. *** Written Evidence:** Documents and written evidence are very important to strengthen claims in the case of default. *** Dispute Resolution Mechanism:** The agreement must contain a clear dispute resolution mechanism, such as mediation or arbitration. *** Increasing Legal Awareness:** Increasing legal awareness about the importance of NDA and the consequences of violations can help prevent default.

Conclusion

Although NDA is an important tool in protecting confidential information, the case of PT. Basuki Pratama Engineering vs. PT. Hitachi Construction Machinery Indonesia shows that the difficulty of proving the truth in the case of default is a separate obstacle. Therefore, it is essential for the parties to formulate the NDA carefully and detailed, as well as avoiding potential violations by increasing legal awareness and applying an effective dispute resolution mechanism.

Recommendations

Based on the analysis of the case of PT. Basuki Pratama Engineering vs. PT. Hitachi Construction Machinery Indonesia, the following recommendations can be made:

Formulate NDA carefully and detailed: The agreement must be formulated clearly and in detail, including all aspects of confidential information that will be protected, as well as the rights and obligations of each party.
Increase legal awareness: Increasing legal awareness about the importance of NDA and the consequences of violations can help prevent default.
Apply an effective dispute resolution mechanism: The agreement must contain a clear dispute resolution mechanism, such as mediation or arbitration.
Provide written evidence: Documents and written evidence are very important to strengthen claims in the case of default.

By following these recommendations, parties can minimize the risk of default in NDA and ensure the protection of confidential information.
Frequently Asked Questions (FAQs) About Non-Disclosure Agreements (NDAs)

Introduction

Non-disclosure agreements (NDAs) are an essential tool in protecting confidential information in business-to-business relationships. However, many people are still unclear about the concept of NDAs and how they work. In this article, we will answer some of the most frequently asked questions about NDAs to help you better understand this important topic.

Q1: What is a Non-Disclosure Agreement (NDA)?

A: A non-disclosure agreement (NDA) is a written agreement that governs the disclosure and use of confidential information between two or more parties. It is a contract that prohibits one party from disclosing confidential information to a third party without the permission of the other party.

Q2: Why is an NDA Important?

A: An NDA is important because it helps to protect confidential information from being disclosed to unauthorized parties. This can include trade secrets, business strategies, and other sensitive information that could harm the business if disclosed.

Q3: What Types of Information are Protected by an NDA?

A: An NDA can protect a wide range of confidential information, including:

Trade secrets
Business strategies
Financial information
Technical information
Marketing information
Other sensitive information

Q4: Who Can Sign an NDA?

A: Anyone can sign an NDA, including:

Employees
Contractors
Partners
Suppliers
Customers
Other third parties

Q5: How Long Does an NDA Last?

A: The length of an NDA can vary depending on the agreement. Some NDAs may be for a specific period of time, while others may be ongoing.

Q6: Can an NDA be Terminated?

A: Yes, an NDA can be terminated. This can happen if one party breaches the agreement or if the agreement is no longer needed.

Q7: What Happens if Someone Breaches an NDA?

A: If someone breaches an NDA, the other party may be able to sue for damages. This can include financial compensation for any losses suffered as a result of the breach.

Q8: Can an NDA be Used to Protect Intellectual Property?

A: Yes, an NDA can be used to protect intellectual property, including patents, trademarks, and copyrights.

Q9: How Do I Draft an NDA?

A: Drafting an NDA requires careful consideration of the terms and conditions of the agreement. It is recommended that you seek the advice of a lawyer to ensure that the agreement is properly drafted.

Q10: Can an NDA be Used Internationally?

A: Yes, an NDA can be used internationally. However, it is essential to consider the laws and regulations of the countries involved to ensure that the agreement is enforceable.

Conclusion

Non-disclosure agreements (NDAs) are an essential tool in protecting confidential information in business-to-business relationships. By understanding the basics of NDAs, you can better protect your business and prevent the unauthorized disclosure of sensitive information.

Additional Resources

If you have any further questions about NDAs or would like to learn more about this topic, please refer to the following resources:

Indonesian Civil Code: Article 1311 et seq.
Indonesian Commercial Code: Article 1 et seq.
International Chamber of Commerce (ICC) Model NDA: A sample NDA that can be used as a guide when drafting your own agreement.

By following these resources and understanding the basics of NDAs, you can better protect your business and prevent the unauthorized disclosure of sensitive information.