Meaning
Formal guidance issued by the highest judicial body clarifies the application of law regarding trade secret infringement and the allocation of the burden of proof. This judicial interpretation fa shi 2020 no 12 specifically addresses how courts should handle cases under the revised Anti-Unfair Competition Law. It defines the elements of secrecy, value and reasonable measures required for information to qualify as a protected secret.
Trade Interpretation
The document explains that commercial value is proven when the secret provides the owner with a competitive advantage or economic benefit. This interpretation prevents companies from claiming protection for generic business information that is widely known.
Burden Shift
Plaintiff requirements are lowered once they prove the information is a secret and the defendant had access to it. This shift moves the responsibility to the defendant to prove they obtained the information through independent development or reverse engineering.
Loss Measurement
Guidelines for calculating damages include the actual loss of the right holder and the illegal gains of the infringer. These guidelines allow for the use of reasonable royalty multiples when exact losses are difficult to quantify. The interpretation also supports the application of punitive damages for intentional acts of theft that result in serious consequences.
