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NC General Statutes

N.C. Gen. Stat. § 66-155 (2026)

Burden of proof

✓ current as of July 2026
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Misappropriation of a trade secret is prima facie established by the introduction of substantial evidence that the person against whom relief is sought both:

(1) Knows or should have known of the trade secret; and

(2) Has had a specific opportunity to acquire it for disclosure or use or has acquired, disclosed, or used it without the express or implied consent or authority of the owner.

This prima facie evidence is rebutted by the introduction of substantial evidence that the person against whom relief is sought acquired the information comprising the trade secret by independent development, reverse engineering, or it was obtained from another person with a right to disclose the trade secret. This section shall not be construed to deprive the person against whom relief is sought of any other defenses provided under the law. (1981, c. 890, s. 1.)

 

Notes of Decisions
Cited in 65 cases (14 in the last 5 years), 1993–2026 · leading case: Krawiec v. Manly, 811 S.E.2d 542 (N.C. 2018).
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Krawiec v. Manly, 811 S.E.2d 542 (N.C. 2018). · cites it 14× “” N.C.G.S. § 66-155 (2017). There is no statutory heightened pleading standard for misappropriation of trade secrets, see id.”
Horner Int'l Co. v. McKoy, 754 S.E.2d 852 (N.C. Ct. App. 2014). · cites it 6× “N.C. Gen. Stat. § 66-155 (2013) (italics added).”
Glaxo Inc. v. Novopharm Ltd., 931 F. Supp. 1280 (E.D.N.C. 1996). · cites it 7× “N.C.Gen.Stat. § 66-155. Independent devel *1305 opment is an absolute defense to a claim of trade secret misappropriation.”
Static Control Components, Inc. v. Darkprint Imaging, Inc., 200 F. Supp. 2d 541 (M.D.N.C. 2002). · cites it 6× “The Act provides that: Misappropriation of a trade secret is prima facie established by the introduction of substantial evidence that the person against whom relief is sought both: (1)Knows or should have known of the trade secret; and (2) Has a specific opportunity to acquire…”
Med. Staffing Network, Inc. v. Ridgway, 670 S.E.2d 321 (N.C. Ct. App. 2009). · cites it 2× “” N.C. Gen. Stat. § 66-155 (2007). Defendants place great weight on the fact that MSN has no direct evidence that Ridgway copied or transmitted any information from MSN’s database, which contained MSN’s nurses’ phone numbers, pay rates, specializations, and preferences regarding…”
Combs & Assocs., Inc. v. Kennedy, 555 S.E.2d 634 (N.C. Ct. App. 2001). · cites it 2× “N.C. Gen. Stat. § 66-155 (1999). Once the owner establishes a prima facie case, the burden of proof shifts to the defendant who may rebut the allegation by introducing substantial evidence that the trade secret was acquired through “independent development, reverse engineering,…”
RLM Commc'ns, Inc. v. Tuschen, 66 F. Supp. 3d 681 (E.D.N.C. 2014). · cites it 4× “N.C. Gen.Stat. § 66-155. “Trade secret” means “business or technical information” that: a.”
Sunbelt Rentals, Inc. v. Head & Engquist Equip., L.L.C., 620 S.E.2d 222 (N.C. Ct. App. 2005). · cites it 2× “” N.C. Gen. Stat. § 66-155 (2003). An example of plaintiffs prima facie showing of misappropriated trade secrets follows: prior to hiring BPS’ employees, defendants had no customers in North Carolina, Georgia or Florida; however, defendants’ actions resulted in a $3.”
Byrd's Lawn & Landscaping, Inc. v. Smith, 542 S.E.2d 689 (N.C. Ct. App. 2001). · cites it 2× “” N.C. Gen. Stat. § 66-155 . Such evidence may be rebutted, however, if the person against whom relief is sought presents substantial evidence that he acquired the information through “independent development.”
Panos v. Timco Engine Ctr., Inc., 677 S.E.2d 868 (N.C. Ct. App. 2009). · cites it 4× “N.C. Gen. Stat. § 66-155 (2007). Thus, a prima facie case does not exist without a showing of the trade secret the person against whom relief is sought knows or should have known.”
Eli Rsch., Inc. v. United Commc'ns Grp., LLC, 312 F. Supp. 2d 748 (M.D.N.C. 2004). · cites it 2× “¶¶ 59-60, 121, 140-41), and that Defendants used the information (id. ¶¶ 126, 166, 210-15, 229).”
Unimin Corp. v. Gallo, 2014 NCBC 43 (N.C. Bus. Ct. 2014). · cites it 12× “” N.C.G.S. § 66-155 (2014). A defendant may rebut an owner’s claim of misappropriation by proving that the defendant acquired the owner’s trade secret information through independent development or reverse engineering, or by proving that the owner’s “trade secret” information…”
Show all 65 citing cases →
— N.C. Gen. Stat. § 66-155(1) — 3 cases
Glaxo Inc. v. Novopharm Ltd., 931 F. Supp. 1280 (E.D.N.C. 1996). “N.C.Gen.Stat. § 66-155. Independent devel *1305 opment is an absolute defense to a claim of trade secret misappropriation.”
RLM Commc'ns, Inc. v. Tuschen, 66 F. Supp. 3d 681 (E.D.N.C. 2014). “N.C. Gen.Stat. § 66-155. “Trade secret” means “business or technical information” that: a.”
North Carolina Elec. Membership Corp. v. North Carolina Dep't of Econ. & Cmty. Dev., 425 S.E.2d 440 (N.C. Ct. App. 1993).
— N.C. Gen. Stat. § 66-155(2) — 3 cases
Glaxo Inc. v. Novopharm Ltd., 931 F. Supp. 1280 (E.D.N.C. 1996). “N.C.Gen.Stat. § 66-155. Independent devel *1305 opment is an absolute defense to a claim of trade secret misappropriation.”
RLM Commc'ns, Inc. v. Tuschen, 66 F. Supp. 3d 681 (E.D.N.C. 2014). “N.C. Gen.Stat. § 66-155. “Trade secret” means “business or technical information” that: a.”
Rel. Ins., Inc. v. Pilot Risk Mgmt. Consulting, LLC (N.C. 2026).
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