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Trade Secret

Qu Xiaoyang, Director of Intellectual Property | Dec. 4. 2013. Trade Secret. Trade Secret. Trade secret protection. A challenge for compan ies in China. Civil law. Labor law. Anti-unfair competition law (1993). Criminal law. SAIC Administration regulation. Legal Frame Work.

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Trade Secret

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  1. Qu Xiaoyang, Director of Intellectual Property | Dec. 4. 2013 Trade Secret

  2. Trade Secret Trade secret protection A challenge for companies in China

  3. Civil law Labor law Anti-unfair competition law (1993) Criminal law SAIC Administration regulation Legal Frame Work

  4. Approach of Trade Secret Enforcement • ( Preferred by local company ) Civil procedure Criminal procedure

  5. 20% Annual turnover rate in China Leading local company prefers criminal prosecuting MNC has concerns when transferring cutting-edge technology to China Enterprises has no motivation to develop their own trade secret Chinese Sustainable Growth Requires

  6. District court ruled that the employer had violated the freedom of correspondence of the employees by monitoring their e-mail send off. The employee was charged of downloading sensitive files without authorization and send it to 3rd party, using company PC and company IT network, but through private mail box. Court ruled that the IT monitor / recorded system is under full control of the employer. Therefore the record of unauthorized downloading was not sufficient to charge the former employee. Two cases

  7. Apply to employee, besides business operator Defendant’s burden of proof Court order for evidence preservation Consequential offense replaced by Offense of act Demand for a modern trade secret protection system

  8. Thank you!

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