About trade secret:
“Trade secret refers to technical information and business information which is not known to the public domain, can bring economic benefits for the owner and the owner takes necessary confidentiality measures to protect.” Trade secret mainly includes: Fabrication method, technology, technique, formula, data, program, design, customer list, sourcing information, tender/bidding documents and other technical/operating information.

Trade secret has the following features:
I. Secrecy. Any information of trade secret must be unknown to the public domain. This is the typical feature of trade secret. Unknown to the public domain does not mean it is unknown to anyone. Instead, this means it is unknown to anyone but not the owner and its relevant personnel. For example, trade secret may be known to corporate employees and cooperative enterprises that contact trade secret. 

II. Value. Trade secret brings economic benefits for the owner, including immediate economic benefits and potential economic benefits. The value of trade secret is generally a guarantee for the advantageous position of the owner in market competition. Once trade secret is infringed, the right owner will inevitably suffer from losses.

III. Information. The information of trade secret includs technical information and operation information concerning business activities. 

IV. Confidentiality. Confidentiality is a typical nature for trade secret. Right owner should take reasonable confidential measures to protect trade secret from being known to the public domain. 

V. Usefulness. Trade secret must be useful in business operation and have immediate or potential value. Objectively, it should have specific, determined programs or information, including formula, pattern, program, method, technology, edited article, process and design. Trade secret should be useful in certain sector or sectors. Operation information or technical information without useful value cannot be referred to as trade secret. Abstract conception, Our Principle or rules cannot receive legal protection unless they can be transformed into specific operable programs. 


Conduct infringing trade secret:
1. The infringer resorts to trade secret piracy, material seduction or threat to obtain trade secret owned by others;

2. The infringer discloses, uses or causes others to use trade secret in his possession;

3. The infringer violates the requirements of trade secret owner on trade secret protection, publicizes, discloses or transfers the trade secret he uses in work.

Crime stipulated in criminal law for infringement of trade secret:
I. Up to 3 years imprisonment or detention and/or penalty for offense that causes heavy losses;

II. 3-7 years imprisonment and penalty for offense that causes extremely heavy losses;

III. Any organization commits this offense, penalty will be imposed on such organization and penalty against freedom will be imposed on chief persons and direct responsible persons as specified in the two clauses above. 

Risk from trade secret disclosure:
With high-speed growth in market economy, enterprises are paying increasingly attention to trade secret protection. This is because intangible asset can bring substantial economic benefits for enterprises and help them obtain competitive advantage in market to gain more economic benefits. And because of this, trade secret often becomes the target for illegal infringers. Some enterprises lose their competitive advantage, facing suspend production, went out of business or even go bankruptcy due to trade secret disclosure. 

Important points for enterprises while dealing with trade secret cases: In dealing with infringement of trade secret, some clients lack a correct understanding of legal elements for infringement of trade secret. They don’t know what kind of information is trade secret is protected by law and should never let employees taking out of work place, and what is the technology, experience and skill accumulated by employees themselves, which will be used when them serving another cooperation.. some enterprises even don’t understand the relations between trade secret information and its carriers. Therefore, employers and leaving employees often get into disagreement as for what information leaving employees can take away and whether use of such information by leaving employees constitutes infringement after they leave relevant documents and magnetic disks.

Our progessionals will cooperate with your company or your external advisors and assist you to find out what accurately happened, what risks you are facing with, what people are involved the event and whether you can get compensation. When you want to analyze and minimize the potential risks, our progessionals can provide advise and assistance. Through risk assessment, we can help you to identify the high-risk point, and help you formulate strategies in accordance with laws and regulations to effectively crack down criminal suspects. It is necessary to effectively control this type of infringement and report such case in public security agency as economic crime. Key working points for this process include: 


I. Risk control for trade secret:
Establish a complete confidentiality system, avoid excessive possession of core technology, have key personnel sign “Non-Competition Agreement”, identify whereabout of key personnel after resignation and intensify file management;

II. Legally protect trade secret from infingement:

1. Integrate case-related information and identify whether the information is trade secret or not;
2. Investigate to obtain relevant evidence concerning tortious act; 
3. Organize and submit case-filing documents to public security agency;
4. Follow up case-filing process and after-filing implementation.