A South Carolina Non-Disclosure Agreement (NDA) is a legally binding document that protects confidential information from being disclosed to unauthorized parties. It is governed by the state’s Trade Secrets Act, which defines a trade secret and describes the legal requirements for non-disclosure.
An NDA holds all parties accountable for maintaining the secrecy of sensitive data exchanged.
South Carolina NDA Laws Overview
- Governing Laws: South Carolina Trade Secrets Act. (SC Code §§ 39-8-1 through 39-8-130)
- Statute of Limitation: The plaintiff has three years to initiate legal action after discovering a misappropriation. (SC Code § 39-8-70)
- Trade Secret Definition (SC Code § 39-8-20(5)):
“Trade secret” means:
(a) information including, but not limited to, a formula, pattern, compilation, program, device, method, technique, product, system, or process, design, prototype, procedure, or code that:
(i) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by the public or any other person who can obtain economic value from its disclosure or use, and
(ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
(b) A trade secret may consist of a simple fact, item, or procedure, or a series or sequence of items or procedures which, although individually could be perceived as relatively minor or simple, collectively can make a substantial difference in the efficiency of a process or the production of a product, or may be the basis of a marketing or commercial strategy. The collective effect of the items and procedures must be considered in any analysis of whether a trade secret exists and not the general knowledge of each individual item or procedure.
Are NDAs Enforceable in South Carolina?
Yes. NDAs are usually enforceable in South Carolina, provided that the agreement is reasonable, has appropriate restrictions, and isn’t oppressive to any party involved. South Carolina courts review NDAs to ensure they’re enforceable when preserving the value of trade secrets like internal practices, client data, and product prototypes.
By signing an NDA, both parties agree to safeguard the disclosed information and accept legal responsibility if it is misused or leaked. This document ensures that companies can share confidential business details and establish clear consequences for breaches of trust under South Carolina law.
