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South Carolina Trade Secret Laws: UTSA, Remedies & Deadlines

Independently fact-checkedEditor-reviewedLaw current as of August 17, 2026By Recording Law Editorial TeamReviewed September 11, 20269 min read

Independently fact-checked against primary sources (last audited August 17, 2026). · Reviewed by the RecordingLaw editorial team. · Law checked current as of August 17, 2026. · 1 primary source cited on this page. How we verify our legal content

South Carolina Trade Secret Laws: UTSA, Remedies & Deadlines

The South Carolina Trade Secrets Act, S.C. Code §§ 39-8-10 to 39-8-130, was first enacted in 1992 and comprehensively rewritten by 1997 Act No. 38, effective May 21, 1997. Section 39-8-20(5)(b) requires considering the collective effect of items or procedures, not general knowledge of each individual item, while the economic-value and reasonable-secrecy requirements still apply. Claims must be filed within three years of discovery (§ 39-8-70), 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?

The South Carolina Trade Secrets Act, S.C. Code §§ 39-8-10 to 39-8-130, was first enacted in 1992 and comprehensively rewritten by 1997 Act No. 38, effective May 21, 1997. Section 39-8-20(5)(b) requires considering the collective effect of items or procedures, not general knowledge of each individual item, while the economic-value and reasonable-secrecy requirements still apply. Under § 39-8-110, 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.

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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, product, system, process, design, prototype, procedure, or code, that satisfies two conditions. First, the information 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.

Section 39-8-20(5)(b) recognizes that a simple fact, item, procedure, or series of items or procedures may collectively make a substantial difference to process efficiency, production, or commercial strategy. Courts must consider their collective effect, rather than general knowledge of each individual item; the economic-value and secrecy requirements still apply.

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. Section 39-8-20 does not expressly name reverse engineering or independent development; independent discovery without improper acquisition, use, or breach of confidentiality does not itself establish misappropriation.

Remedies and the limitations period in South Carolina

The South Carolina Trade Secrets Act provides several categories of relief for successful claimants:

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  • Injunctions: Under § 39-8-50, 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 or 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: The court may award exemplary damages up to twice the actual damages awarded under § 39-8-40(A) upon a finding of wilful, wanton, or reckless disregard of the plaintiff’s rights (§ 39-8-40(C)).
  • Attorney fees: The court may award reasonable attorney fees to the prevailing party for a bad-faith misappropriation claim, a motion to terminate an injunction made or resisted in bad faith, or wilful misappropriation (§ 39-8-80).

The limitations period is three years. Under § 39-8-70, 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 § 39-8-70.

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.

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. Section 39-8-20(5)(b) requires considering the collective effect of items or procedures, not general knowledge of each individual item, while the economic-value and reasonable-secrecy requirements still apply. Customer lists, manufacturing formulas, proprietary processes, source code, and pricing strategies are common examples. Section 39-8-20 does not expressly name reverse engineering or independent development.

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 § 39-8-70. 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 (§ 39-8-50), actual loss, nonduplicative unjust enrichment, or a reasonable royalty (§ 39-8-40), exemplary damages up to twice the actual damages awarded under § 39-8-40(A) upon a finding of wilful, wanton, or reckless disregard of the plaintiff’s rights (§ 39-8-40(C)), and reasonable attorney fees to the prevailing party for a bad-faith misappropriation claim, a motion to terminate an injunction made or resisted in bad faith, or wilful misappropriation (§ 39-8-80). 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?

Potentially. Section 39-8-20(5)(b) recognizes that a simple fact, item, procedure, or series of items or procedures may collectively make a substantial difference to process efficiency, production, or commercial strategy. Courts must consider their collective effect, rather than general knowledge of each individual item; the economic-value and secrecy requirements still apply.

Updates

Corrected South Carolina’s collective-effect rule, statutory history, state remedy standards, and reverse-engineering attribution.

Corrected five scrambled pinpoint citations in South Carolina's Trade Secrets Act, including one that had misdirected readers to the chapter's criminal theft statute (§ 39-8-90) while labeling it the civil preemption clause; the real preemption section is § 39-8-110.

Independently fact-checked against the cited primary sources; governing law re-checked for recent changes

Governing law re-checked for recent changes

Governing law re-checked for recent changes

Reviewed and approved by an editor

Sources and References

  1. South Carolina Trade Secrets Act, S.C. Code §§ 39-8-20 to 39-8-130(scstatehouse.gov).gov
  2. Defend Trade Secrets Act, 18 U.S.C. §§ 1836-1839(law.cornell.edu)
  3. Uniform Trade Secrets Act (Uniform Law Commission)(uniformlaws.org)
  4. Economic Espionage Act, 18 U.S.C. §§ 1831-1832(law.cornell.edu)
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