photo by Pengpai News

“There is a high trend of disputes on business secrets in China, and the business secrets infringement has become one of the severely afflicted areas in the intellectual property rights infringement, which is mainly related to the introduction and flow of talents and the introduction of technology,”said Nan Cunhui, member of the Standing Committee of CPPCC National Committee, vice chairman of the ACFIC and president of the CHINT Group.

“Hence, it’s recommended that we shall establish the Business Secrets Law and perfect the legal protection system.”Nan will submit a proposal on establishing the Business Secrets Law during the Two Sessions of 2019.

“The business secret is the key, precious and potential fortune of an enterprise. The conflicts are inevitable due to the discrepancy of relevant legislation on domestic business secrets protection, such as the Law of the People's Republic of China for Countering Unfair Competition, the Labor Contract Law, the Contract Law and the Law of Civil Procedure, and other administrative regulations. There’s apparently a lack of coherence and consistency in the whole comprehensive scheme, where conflicts surge.”Nan Cunhui stated.

Besides, the right holders of business secrets also face difficulties on proof and rights protection for the deficiency of detailed regulations on application procedures, jurisdiction, property preservation before litigation and litigation holds on business secrets protection and the inconsistent standards of legal regulations and judicial practice.

The Business Secrets Law recommended by Nan Cuihui involves establishment of specific definitions on constitution, protected domain, responsibility assignment on proof and the identification range of business secrets, the regulations on security problems, prohibition of business strife, freedom of occupation and coherence in protection of business secrets during the process of judgement. The rest of the law focus on perfecting the procedure of litigation, further defining infringement and responsibilities in business secrets, rational extension of the protection and intensification of punishment on infringement.

March 4, 2019

Source: Pengpai News