A North Carolina Non-Disclosure Agreement (NDA) 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.

Governing Laws: Article 24 – Trade Secrets Protection Act
Statute of Limitation: After discovering the misappropriation, the plaintiff has three years to sue the defendant (§ 66-157).
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.

Are NDAs Enforceable in North Carolina?

Yes. NDAs are enforceable in North Carolina when they are reasonable in scope and necessary to protect confidential business information. The agreement must clearly define the protected information and should not be overly broad in its restrictions. North Carolina courts will generally enforce NDAs that are fair and serve a legitimate business purpose.