Restricted © Siemens AG 2013. All rights reserved Trade Secret Qu Xiaoyang, Director of Intellectual Property | Dec. 4. 2013.

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Presentation transcript:

Restricted © Siemens AG All rights reserved Trade Secret Qu Xiaoyang, Director of Intellectual Property | Dec

Page 2 December 2013Restricted © Siemens AG All rights reserved Trade Secret Trade secret protection A challenge for companies in China

Page 3 December 2013Restricted © Siemens AG All rights reserved Legal Frame Work Civil law Labor law Anti-unfair competition law (1993) Criminal law SAIC Administration regulation

Page 4 December 2013Restricted © Siemens AG All rights reserved Approach of Trade Secret Enforcement Civil procedureCriminal procedure ( Preferred by local company )

Page 5 December 2013Restricted © Siemens AG All rights reserved Chinese Sustainable Growth Requires 20% Annual turnover rate in China Leading local company prefers criminal prosecuting MNC has concerns when transferring cutting-edge technology to China Enterprises has no motivation to develop their own trade secret

Page 6 December 2013Restricted © Siemens AG All rights reserved Two cases District court ruled that the employer had violated the freedom of correspondence of the employees by monitoring their send off. The employee was charged of downloading sensitive files without authorization and send it to 3 rd party, using company PC and company IT network, but through private mail box. Court ruled that the IT monitor / recorded system is under full control of the employer. Therefore the record of unauthorized downloading was not sufficient to charge the former employee.

Page 7 December 2013Restricted © Siemens AG All rights reserved Demand for a modern trade secret protection system Apply to employee, besides business operator Defendant’s burden of proof Court order for evidence preservation Consequential offense replaced by Offense of act

Page 8 December 2013Restricted © Siemens AG All rights reserved Thank you!