Georgia Non-Disclosure Agreement Requirements
That exemption sits inside a broader framework: Section 13-8-51 of Georgia's Restrictive Covenants Act, effective May 11, 2011 after a 2010 constitutional amendment, defines a restrictive covenant broadly enough to include agreements protecting confidential information, so an NDA's confidentiality terms fall within the Act's coverage even though O.C.G.A.
Introduction
That exemption sits inside a broader framework: Section 13-8-51 of Georgia's Restrictive Covenants Act, effective May 11, 2011 after a 2010 constitutional amendment, defines a restrictive covenant broadly enough to include agreements protecting confidential information, so an NDA's confidentiality terms fall within the Act's coverage even though O.C.G.A. Section 13-8-53(e) carves them out of the time and geographic reasonableness limits that apply to noncompete and nonsolicit covenants under that same Act. A Georgia NDA is otherwise an ordinary confidentiality contract, mutual or one-way, protecting trade secrets and other sensitive information shared between parties. Trade secrets themselves are protected separately under the Georgia Trade Secrets Act of 1990 (O.C.G.A. Section 10-1-760 et seq.), and a misappropriation claim generally must be filed within five years of when the misappropriation was discovered or reasonably should have been, a notably longer window than the three years used in many other states. The practical effect for drafting is that a Georgia NDA's confidentiality clause can run indefinitely without triggering the reasonableness limits that would sink an overlong noncompete.
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Key Things to Know
- 1
Georgia has no statute like California's Labor Code Section 2870 carving employee inventions made on personal time out of a mandatory assignment clause. An invention-assignment provision in a Georgia NDA or employment agreement is governed by ordinary contract law, so an employee who wants to protect personal inventions needs to negotiate that protection directly into the agreement.
- 2
Georgia's Restrictive Covenants Act (O.C.G.A. Section 13-8-53(e)) exempts confidentiality and trade secret provisions from the time and geographic reasonableness limits that apply to noncompete and nonsolicit covenants under the same Act, so an NDA's confidentiality clause can last for as long as the information stays confidential or a trade secret.
- 3
That exemption runs alongside Section 13-8-51's broad definition of a restrictive covenant, which reaches agreements protecting confidential information, customer good will, and business relationships, not just noncompete and nonsolicit clauses, so a Georgia NDA's confidentiality terms are part of the same statutory framework even though they escape its durational limits.
- 4
Trade secret protection runs through the Georgia Trade Secrets Act of 1990 (O.C.G.A. Section 10-1-760 et seq.), separate from whatever the NDA itself says.
- 5
A trade secret misappropriation claim in Georgia generally must be filed within five years of when the misappropriation was discovered or reasonably should have been discovered (O.C.G.A. Section 10-1-766), longer than the three-year period used in California and many other states.
- 6
Mutual NDAs, where both sides share confidential information, and one-way NDAs, where only one side does, are both ordinary enforceable contracts in Georgia; which one fits depends on whether the exchange runs both directions, like a partnership or acquisition discussion, or one direction, like pitching an investor.
- 7
A Georgia court can order injunctive relief to stop an ongoing or threatened breach of a valid NDA, in addition to any damages the disclosure caused.
Key decisions before you file
Before you file a Non-Disclosure Agreement in Georgia, a few decisions shape the document: which option to choose and what each one means. The Non-Disclosure Agreement guide walks through them.
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Georgia Requirements for Non-Disclosure Agreement
Definition of Confidential Information (Georgia Trade Secrets Act of 1990, O.C.G.A. Section 10-1-761(4))
Defines confidential information by reference to the Georgia Trade Secrets Act's definition of trade secret at Section 10-1-761(4): information that derives economic value from not being generally known or readily ascertainable by proper means, and that is the subject of efforts reasonable under the circumstances to maintain its secrecy. Pinpointed to the specific definitions subsection rather than the Act's short-title section.
Exclusions from Confidential Information (Georgia Trade Secrets Act of 1990, O.C.G.A. Section 10-1-761(4))
Georgia's trade secret definition at Section 10-1-761(4) requires information to derive value from not being generally known, which supports carving publicly available and independently known information out of an NDA's confidentiality obligations. The standard NDA exclusions, information independently developed by the recipient or rightfully received from a third party without restriction, are drafting conventions consistent with this definition rather than separately listed within the statute itself.
Obligations of Receiving Party (Georgia Trade Secrets Act of 1990, O.C.G.A. Section 10-1-761(2))
Section 10-1-761(2) defines misappropriation, the wrongful acquisition, disclosure, or use of a trade secret, which is the statutory standard against which a receiving party's confidentiality obligations and conduct are measured, rather than an affirmative statement of due-care duties in its own right.
Remedies for Breach (Georgia Trade Secrets Act of 1990, O.C.G.A. Section 10-1-762)
Specifies available remedies for misappropriation of a trade secret, including injunctive relief for actual or threatened misappropriation, royalty-conditioned continued use in exceptional circumstances, and court-ordered affirmative acts to protect a trade secret.
Severability (Georgia Code on Contracts, O.C.G.A. Section 13-1-8)
Distinguishes entire from severable contracts and provides that in a severable contract, the failure of a distinct part does not void the remainder, with the character of the contract determined by the parties' intention, supporting a standard severability clause.
Defend Trade Secrets Act Compliance (18 U.S.C. Section 1833(b), Defend Trade Secrets Act of 2016)
Includes the required notice that an individual may not be held liable for disclosing a trade secret in confidence to a government official or attorney to report a suspected violation of law, or in a sealed court filing, as required to preserve the disclosing party's remedies under the Defend Trade Secrets Act.
Economic Espionage Act Compliance (18 U.S.C. Sections 1831 through 1839, Economic Espionage Act)
Acknowledges federal protections against economic espionage and theft of trade secrets, including criminal penalties, beyond Georgia state law.
Electronic Signatures (Georgia Uniform Electronic Transactions Act, O.C.G.A. Section 10-12-1 et seq., and 15 U.S.C. Section 7001, Electronic Signatures in Global and National Commerce Act)
Confirms that electronic signatures are valid for executing the NDA under both federal and Georgia law. Georgia's enactment is the Uniform Electronic Transactions Act, effective July 1, 2009, codified at O.C.G.A. Section 10-12-1 et seq.
Non-Solicitation Provisions (Georgia Restrictive Covenants Act, O.C.G.A. Section 13-8-50 et seq.)
If included, any non-solicitation provisions must comply with Georgia's Restrictive Covenants Act, effective May 11, 2011, which requires such covenants to be reasonable in time, scope, and geographic area, distinct from the confidentiality provisions this Act separately exempts from those same limits.
Consideration (Georgia Code on Contracts, O.C.G.A. Section 13-3-40)
States that consideration is essential to an enforceable contract, and an executory contract without it is a nudum pactum, or naked promise, establishing valid consideration as required for the Agreement's enforceability.
Entire Agreement (Georgia Code on Contracts, O.C.G.A. Section 13-2-2(1))
Establishes that the NDA constitutes the entire understanding between the parties, superseding prior agreements. Subsection (1) is specifically Georgia's parol evidence rule: parol evidence is inadmissible to add to, take from, or vary a written contract, subject to exceptions for ambiguity or a manifestly incomplete writing, which is the statutory basis for why an entire-agreement clause matters under Georgia law.
Dispute Resolution (Georgia Arbitration Code, O.C.G.A. Section 9-9-1 et seq.)
Establishes procedures for resolving disputes, such as mediation or arbitration, which are recognized under the Georgia Arbitration Code as alternatives to litigation.