“When suspecting on-job employees or resigned employees are holding positions in 
similar enterprises or in companies associated with our company against 
non-competition agreement, how should we investigate such events and what should 
we do to prevent risks arising from such employees?” 
As authorized by a chemical works in Xiamen in 2007, we investigated a case 
where a leaving employee of the company violated non-competition agreement. 
After Huang, vice factory director responsible for production, resigned in late 
2006, the company frequently received feedback from customers in other regions, 
saying Huang was probably producing similar products in another city and selling 
such products at lower price. The company decided to investigate the whereabout 
of employees who left the company recently in an attempt to avoid loss of their 
proprietary products and technical know-how. 
 






After accepting authorization, we began investigation on on-job and resigned 
employees of our client. As vice factory director responsible for production, 
Huang had full conditions to access full sets of technical formula and 
production process. In addition, the technical secret of our client was 
accessible by very few people. Except supervisory personnel, other employees 
could not fully access such information. After initial investigation, we 
identified Huang as key suspect. Our investigator began to find out the 
whereabout of Huang and soon found him operating a factory in Wenzhou Zhejiang. 
Our investigator got employed in Huang’s factory and collected evidence during 
May 1 holiday. He obtained competent evidence to prove Huang made infringing use 
of his former employer’s trade secret and technology against non-competition 
agreement. Currently, our client has launched a lawsuit with local people’s 
court against Huang for his violation against non-competition agreement and 
confidentiality agreement. Our client requests Huang to immediately discontinue 
infringing act and reserves the right to claim for compensation for losses 
arising from such infringement.