Nothing is more frustrating than when a member of a project leaks key details about an upcoming film, game release, album, talent decision, or other major production. And if those moves violate a non-disclosure agreement, they create an actionable situation for your legal team. What should you do when talent or employees violate an NDA and how can you mitigate the damage? This Insight will cover practical steps for entertainment employers to respond when an NDA is broken.
Setting the Stage
In general terms, an NDA (non-disclosure agreement) is a contract that prohibits a party from disclosing specific confidential information shared during a business or employment relationship.
Non-disclosure pacts in general industry typically seek to protect confidential information and trade secrets: operations, pricing, margins, customer relationships, or inventions. And just like any other company, entertainment employers also have confidential business information to protect. This may include release dates, marketing budgets, and which actors or musical artists are connected to which projects. That information is often top secret until it’s ready to be released, because the timing of disclosure is part of the marketing strategy.
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