Updated June 04, 2023
A South Carolina non-disclosure agreement is a document used to protect a business’s Trade Secrets and keep them out of the hands of competing companies. Once the parties sign the agreement, they’ve agreed to maintain the secrecy of the Confidential Information and to accept full responsibility should the data be leaked to a third party. This agreement is indefinite once signed; it can only be revoked if the owner of the information releases a party, or if the Confidential Information no longer qualifies as a Trade Secret. Confidential Information cannot mean anything that is already ubiquitously used or information already in the possession of either party before the agreement was created.
Laws – §§ 39-8-1 – 39-8-130 (South Carolina Trade Secrets Act)
“Trade Secret” Definition
“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.
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