Meaning
Statutory provisions within the anti-unfair competition law of the people republic of china define the evidentiary standards for trade secret misappropriation. The legal clause known as prc aucl article 32 creates a specialized framework for shifting the burden of proof in civil litigation involving the theft of commercial information. It governs how a plaintiff demonstrates that a defendant has accessed or used confidential data without authorization.
This provision stops at the determination of liability, after which the court moves to the assessment of damages. It applies to all business entities operating within the jurisdiction that possess protectable technical or business secrets.
Burden Shift
Once a rights holder provides preliminary evidence that its information is secret and has been misappropriated, the responsibility for providing a defense moves to the accused party. Under prc aucl article 32, the defendant must then prove that the information was obtained through independent development or other lawful means. This mechanism prevents defendants from remaining silent when there is a strong suggestion of wrongdoing.
Evidence Requirement
Plaintiffs must first establish that the information has commercial value and that reasonable measures were taken to keep it confidential. Invoking prc aucl article 32 requires showing that the defendant had the opportunity to access the secret and that the information used by the defendant is substantially identical to the protected data. This initial showing is the most difficult hurdle for a manufacturing company to clear.
Judicial Power
Courts use this article to expedite cases where direct evidence of theft is difficult to obtain. A successful application of prc aucl article 32 often leads to the granting of an injunction to stop the further use of the disputed technology.
