What happens if you break a NDA?

If you break an NDA, the consequences are civil. The other party can seek an injunction ordering you to stop, sue for the financial damage the disclosure caused, and collect contractual penalties if the NDA sets them. Many NDAs also make the loser pay legal fees.

What actually happens in practice is usually smaller: a cease-and-desist letter and a tense negotiation. Full lawsuits follow when real money or trade secrets walked out the door. Jail is not on the table unless the conduct was also a crime, like stealing trade secrets to sell.

Accidental breaches matter too, legally, but intent shapes the response. Disclose it fast, contain it, and document the cleanup. How serious it gets tracks how valuable the information was and how you handled the mistake.

A clear boilerplate NDA defines those obligations so nobody breaches by misunderstanding.