Meaning
Intellectual property disputes in China utilize specialized judicial channels to address the unauthorized acquisition, use, or disclosure of non-public commercial information. Engaging in prc trade secret litigation requires a plaintiff to prove that their commercial information is non-public, holds commercial value, and has been subjected to reasonable protective measures. This litigation allows businesses to seek compensation for losses resulting from misappropriation.
Cause Action
Plaintiffs must initiate the lawsuit in a court with jurisdiction over intellectual property matters, such as specialized IP courts. The action typically targets former employees who joined competitors or business partners who breached non-disclosure agreements.
Evidentiary Burden
The plaintiff must first establish a prima facie case of misappropriation before the burden of proof shifts to the defendant. To satisfy this threshold, the plaintiff must provide detailed evidence of the secret nature of the information and the protective measures implemented. The defendant must then prove that the technology or information was acquired through independent development, reverse engineering, or other lawful means.
This shifting dynamic makes the collection and preparation of initial evidence the most critical phase of the dispute.
Remedial Relief
Courts can award compensatory damages based on the actual losses of the plaintiff, the unlawful gains of the defendant, or a reasonable multiple of licensing fees. Punitive damages may also be applied in cases of intentional and serious misappropriation of commercial secrets.
