What Information Could Be Considered as Trade Secret in Tech Product Transaction in China?

Abstract

(By Albert Chen) The tech product transaction involves the information of technology and business. Among such information, to judge which part could be considered as trademark secret, it shall be based upon Article 10 of the Anti Unfair Competition Law, which regulates that to determine the trade secret, the court shall evaluate “whether it is known to the public”, “benefiting”, “practicability” and “confidentiality”.

Case Summary

In 1998, Shanghai Zhenxing Aluminum Co., Ltd. (the “Zhengxing Company”) developed a manufacturing technology, which the company used to produce articles. This technology created by Zhenxing set the standard for the production of the article. Shanghai Huikai Aluminum Co., Ltd. (the “Huikai Company”) was founded on September 10th 2003, and afterwards carried out the business in the same product manufacturing as Zhenxing. As investigated, among the 70 clients of Huikai, 68 once transacted with Zhenxing. For these clients, most products they purchased from Huikaiu were almost the same as those they bought from Zhenxing. Furthermore, Qin and Pan, who are now working in Huikai, are former employees of Zhenxing. During their employment with Zhenxing, the company signed confidential article in the labor contract and also an independent confidential agreement.

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Fang Zhouzi V.S. Han Han & Chinese Legal System on Reputation Infringement

The most notably and widely discussed issue around this Chinese New Year, to Bridge IP Law Commentary’s opinion, is probably not the traditional spring festival variety show on CCTV, but the argument between Fang Zhouzi, a self-claimed anti-fraud cop or myth buster, and Han Han, an acclaimed writer in China. The flame battle started from a blog by Mai Tian, a better-known blogger, doubting many works of Han Han are actually written by his father or other unnamed writer while published in his name. Despite it ends in Mai Tian’s apology and admission of mistake, the issue opens the Pandora’s box of doubts on Han Han. Afterwards, Fang Zhouzi took the relay baton, who was counter-backed by Han Han and his father, and moreover Han Han showed his original manuscript for proving. After days of online words war, Han Han filed the lawsuit for the reputation infringement and claimed the compensation of 100, 000 yuan.

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