How to Protect Trade Secrets When a Shareholder want to Inquiry Company’s Account Book?

(By You Yunting and Wang Ting) Pursuant to China’s Company Law, any shareholder shall be entitled to inspect and copy the Articles of association, minutes of shareholders’ meetings, resolutions of meetings of the board of directors, resolutions of meetings of the board of supervisors and financial reports of a company in which he or she owns shares. However, if a shareholder operates a business in competition with a company in which he or she owns stocks, then when exercising the shareholder’s right to information, such inspection may result in leaks of confidential business and trade secrets. In today’s post, we will introduce this conflict, and discuss ways in accordance with relevant Chinese laws to balance this conflict of interests while maintaining a shareholder’s right to information and a business’ right to protect its trade secrets.


Trade Secret Litigation Injunction Rulings in China


(By You Yunting) According to media reports (note: the link is in Chinese), Eli Lilly and Company and Eli Lilly (China) sued an employee named Huang in the Shanghai No.1 Intermediate People’s Court. That court recently issued the first trade secret litigation injunction in China’s history, and ruled a litigation preservation that prohibited Huang from disclosing, using, or allowing any third party to use 21 documents that were protected as trade secrets by the plaintiff.

Inductions to the Case:


What Chinese Intellectual Property Legal Issues Are American Companies Dissatisfied With?

Day three of the visit to the United States

(By You Yunting) Beginning at the end of this March, on the invitation of the US government, I visited America with the goal of understanding its IPR system. On my third day in the US, I visited the Pharmaceutical Research and Manufacturers of America (“PhRMA”), the United States-China Business Council (“USCBC”), the United States Patent and Trademark Office (“USPTO”), and the East Asia Bureau of the US Department of State. The following is the brief record of my meetings on that day.


The Officer of U.S. Consulate Visited Bridge IP Law Commentary

On 20th December, Mr. Steven Duke (杜史文), Vice Consul of U.S.A, visited DeBund Law Offices/Bridge IP Law Commentary for the survey on the IPR protection in China.

On the meeting with the Consul, Mr. You Yunting introduced the IPR protection in China and replied the questions interested by the visitor, which mainly include the national treatment of foreign companies in IPR dispute settlement, the destroy of knockoff model through judicial way, the copyright of video-sharing programs, the transaction and transfer of patent, the protection of trade secret and the development of IPR judge and lawyers in China.