How to Define Losses in Trade Secret Criminal Cases?

By Luo Yanjie

With the rapid economy development in mainland China, we also see an increase of infringements against industrial property right, especially those trade secret cases uncovered by traditional IPR laws. For those trade secret cases we have participated, the most head aching part shall be the crime liability establishment of the trade secret infringement in Chinese laws, for it could only be decided when the right owner suffers the losses of more than 500, 000 yuan. Today, we would like to share our opinions on the conviction of trade secret infringement as follows.

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Legal Confusions and Difficulties of Industry and Commerce Department in Trade Secret Investigation

The power to administrative punishment on trade secret is enforced by State Administration of Industry and Commerce (SAIC) and local administrations, and in a recent essay (note: the link is in Chinese) by Shanghai Industry and Commerce Administration on the trade secret investigation and evidence collection, the difficulties and confusion faced by the organ are highlighted. The post today is the digest and our comments hereby made:

 (I) The technology information examination and reverse problem

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SIMENS Benefits: A Breakthrough of the Legal Compensation Limit on Pirate Software Litigation

As reported (note: the link is in Chinese), SIMENS PLC Software won the copyright dispute over its software against Excelstor Technology (Excelsor), a company headquartered in Shenzhen, in Shenzhen Intermediate People’s Court, with a sentence to stop the infringement and compensation of 1.16 million yuan for the infringement. There are two eye catching points in this case: 1) the court aided SIMENS in evidence preservation to detain the computers of Excelsor’ s design department, which are detected of NX Unigraphics copyrighted by SIMENS, and that is rare in the cases of this kind; 2) the judged compensation surpassed the legal limit. The post today mainly focuses on the 2nd point. (the image today is the logo of SIMENS)

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