South Carolina
South Carolina Trade Secret Laws: UTSA, Remedies & Deadlines
South Carolina enacted the South Carolina Trade Secrets Act, S.C. Code §§ 39-8-20 to 39-8-130, in 1992, providing civil protection for proprietary business information. The Act expressly states that a combination or aggregation of elements may constitute a protectable trade secret even when individual components are publicly known. Claims must be filed within three years of discovery (§ 39-8-80), and the federal Defend Trade Secrets Act applies concurrently.
This guide is part of our Trade Secret Laws by State series.
Information last verified on 2026-06-25. This article presents general legal information, not legal advice. For a nationwide overview, see Trade Secret Laws by State.
Does South Carolina have a trade secret law?
South Carolina enacted the South Carolina Trade Secrets Act in 1992, codified at S.C. Code §§ 39-8-20 to 39-8-130. Although the statute draws substantially on the UTSA framework, it is not titled a "Uniform" act and contains a notable statutory feature: § 39-8-20 expressly provides that a combination or aggregation of elements may constitute a protectable trade secret, even if the individual components are publicly available or otherwise known, provided the combination derives independent economic value from not being generally known and is protected by reasonable secrecy measures. Under § 39-8-90, the Act displaces conflicting state tort and restitution claims arising from trade-secret disputes, making it the primary state-law vehicle for such cases in South Carolina courts. The federal Defend Trade Secrets Act applies alongside the state statute without preempting it (18 U.S.C. § 1838), allowing claimants to pursue both sets of claims in one proceeding.
What counts as a trade secret and misappropriation in South Carolina?
S.C. Code § 39-8-20 defines a trade secret as information, including a formula, pattern, compilation, program, device, method, technique, or process, or a combination or aggregation of these elements, that satisfies two conditions. First, the information or combination must derive independent economic value, actual or potential, from not being generally known to or readily ascertainable by proper means by persons who can obtain economic value from its disclosure or use. Second, the owner must have taken steps that are reasonable under the circumstances to maintain its secrecy.
The express treatment of combinations and aggregations is a significant feature. A competitor may be aware of each individual ingredient in a formula or each step in a process, yet a protectable trade secret may still exist in the particular combination that produces a competitive advantage. This principle aligns with how many courts apply the UTSA, but South Carolina's statute encodes it directly in the text of § 39-8-20.
Misappropriation under § 39-8-20 means acquiring a trade secret through improper means, such as theft, bribery, misrepresentation, or breach of a duty to maintain secrecy, or using or disclosing it without consent when the person knew or had reason to know it was obtained improperly or disclosed in breach of a confidence. Reverse engineering a product lawfully obtained in the marketplace and independent development of equivalent information are expressly lawful and do not amount to misappropriation.
Remedies and the limitations period in South Carolina
The South Carolina Trade Secrets Act provides several categories of relief for successful claimants:
- Injunctions: Under § 39-8-30, a court may enjoin actual or threatened misappropriation for as long as the trade secret would otherwise remain protectable. In exceptional circumstances, a court may allow continued use on payment of a reasonable royalty rather than enter a prohibitory order.
- Damages: Section 39-8-40 authorizes recovery of actual loss from misappropriation plus the defendant's unjust enrichment not already captured in that amount, or, as an alternative, a reasonable royalty for the period of unauthorized use or disclosure.
- Exemplary damages: When misappropriation is willful and malicious, a court may award exemplary damages up to twice the compensatory award (§ 39-8-50).
- Attorney fees: Available when misappropriation is willful and malicious, or when a claim or motion to terminate an injunction is made in bad faith (§ 39-8-60).
The limitations period is three years. Under § 39-8-80, an action must be filed within three years after misappropriation is discovered or should have been discovered through the exercise of reasonable diligence. Continuing misappropriation constitutes a single claim accruing from the first act that was or should have been discovered. Businesses should investigate and document suspected misappropriation promptly, because delay can affect the right to sue and the scope of recoverable damages.
How the federal DTSA applies in South Carolina
The Defend Trade Secrets Act, 18 U.S.C. §§ 1836-1839, creates a federal civil cause of action for misappropriation when the trade secret relates to a product or service used in, or intended for use in, interstate or foreign commerce. Because the DTSA expressly preserves all state remedies (18 U.S.C. § 1838), South Carolina businesses may plead both DTSA and state-law claims in a single lawsuit, selecting the court and procedural tools that best suit the circumstances.
The DTSA provides one remedy not available under South Carolina's statute: a civil ex parte seizure order under § 1836(b)(2), which enables a court to order immediate seizure of materials containing a trade secret before the defendant receives notice, in extraordinary circumstances where ordinary injunctive relief would be inadequate. The DTSA's three-year limitations period from discovery (§ 1836(d)) matches South Carolina's under § 39-8-80.
South Carolina employers should review their nondisclosure and confidentiality agreements. Any agreement signed or updated after May 11, 2016 must include the DTSA whistleblower-immunity notice required by 18 U.S.C. § 1833(b)(3). An employer that omits this notice forfeits the right to seek exemplary damages and attorney fees from that individual under the DTSA, even when the misappropriation is willful.
This is general legal information, not legal advice. It describes South Carolina and federal trade secret law as of 2026-06-25 and does not address your specific facts. Trade-secret disputes are fact-intensive and filing deadlines are strict. Consult an attorney licensed in South Carolina before taking action.
Related articles
- Trade Secret Laws by State
- Georgia Trade Secret Laws
- Florida Trade Secret Laws
- Is AI-generated code copyright infringement?
Last updated: 2026-06-25.
Frequently Asked Questions
What qualifies as a trade secret in South Carolina?
Under S.C. Code § 39-8-20, information qualifies as a trade secret if it derives independent economic value from not being generally known or readily ascertainable by persons who could benefit from it, and the owner takes reasonable steps to maintain secrecy. Notably, the statute expressly provides that a combination or aggregation of individually known elements can constitute a protectable trade secret. Customer lists, manufacturing formulas, proprietary processes, source code, and pricing strategies are common examples. Reverse engineering and independent development are lawful.
How long do I have to sue for trade secret misappropriation in South Carolina?
Three years from when the misappropriation was discovered or reasonably should have been discovered through the exercise of reasonable diligence, under S.C. Code § 39-8-80. Continuing misappropriation is treated as a single claim accruing from the first act that was or should have been discovered. Prompt investigation when misappropriation is suspected helps preserve the claim within this deadline.
What remedies are available under the South Carolina Trade Secrets Act?
The Act authorizes injunctions to stop actual or threatened misappropriation (§ 39-8-30), actual damages plus unjust enrichment or a reasonable royalty (§ 39-8-40), exemplary damages up to twice the award for willful and malicious misappropriation (§ 39-8-50), and attorney fees for willful, malicious, or bad-faith conduct (§ 39-8-60). Federal DTSA claims also make available a civil ex parte seizure order in extraordinary circumstances.
Do South Carolina NDAs need to include a DTSA whistleblower notice?
Yes. Any nondisclosure or confidentiality agreement signed or updated after May 11, 2016 must notify employees or contractors of the DTSA whistleblower immunity under 18 U.S.C. § 1833(b). An employer that omits this notice forfeits the right to recover exemplary damages and attorney fees from that individual under the DTSA, even for willful misappropriation.
Can a combination of publicly known elements be a trade secret in South Carolina?
Yes. S.C. Code § 39-8-20 expressly provides that a combination or aggregation of elements may qualify as a protectable trade secret, even if the individual components are publicly known, as long as the combination derives independent economic value from not being generally known or readily ascertainable and is protected by reasonable secrecy measures. This statutory language is a notable feature of South Carolina's act that codifies what many courts recognize under general UTSA principles.
Sources and References
- South Carolina Trade Secrets Act, S.C. Code §§ 39-8-20 to 39-8-130(scstatehouse.gov).gov
- Defend Trade Secrets Act, 18 U.S.C. §§ 1836-1839(law.cornell.edu)
- Uniform Trade Secrets Act (Uniform Law Commission)(uniformlaws.org)
- Economic Espionage Act, 18 U.S.C. §§ 1831-1832(law.cornell.edu)