A North Carolina Non-Disclosure Agreement is a crucial legal document that helps to protect valuable business information from unauthorized disclosure. Whether it relates to confidential financial data, product designs, or strategic insights, the NDA restricts unauthorized access to such information.
This agreement is especially important during the hiring process when companies share sensitive information with potential employees.
The non-disclosure remains in effect until the disclosed information becomes public or until the recipient receives written notice releasing them from confidentiality obligations. If there is a breach of the agreement, the responsible party may be held liable for damages incurred. This highlights the critical role of NDAs in preserving business integrity and competitiveness in North Carolina.
Trade Secret Laws
UTSA Version Adopted: Not Officially Adopted
Misappropriation (§ 66-154(2)): If a non-disclosure agreement is breached, the disclosing party can claim damages equal to their financial loss or the unjust earnings of the offending party, whichever is greater. In cases of bad faith or malicious misappropriation, the prevailing party may also receive additional punitive damages and attorney fees.
Statute of Limitation (§ 66-157): After discovering the misappropriation, the plaintiff has three years to sue the defendant.
Trade Secret Definition (§ 66-152(3)):
“Trade secret” means business or technical information, including but not limited to a formula, pattern, program, device, compilation of information, method, technique, or process that:
a. Derives independent actual or potential commercial value from not being generally known or readily ascertainable through independent development or reverse engineering by persons who can obtain economic value from its disclosure or use; and
b. Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
The existence of a trade secret shall not be negated merely because the information comprising the trade secret has also been developed, used, or owned independently by more than one person, or licensed to other persons.