Chinese Intellectual Property and Technology Laws
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Chinese Intellectual Property and Technology Laws

Edited by Rohan Kariyawasam

Written by some of China’s leading academic experts and with a foreword by the former Chief Justice of the IP Tribunal of China’s Supreme People’s Court, this book combines for the very first time a review of both Chinese intellectual property and technology laws in a single volume in English.
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Chapter 6: Unfair Competition/Trade Secrets/Know-how (2)

Liu Xiaohai


129 ‘Capable of bringing economic benefit to the owners whilst having practical applicability’ Bringing economic benefits to the owner generally means that the confidential information has actual or potential commercial value and could provide a competitive edge to the owners.5 Therefore, confidential information can only be protected as a trade secret when it has commercial value. Such commercial value may be actual (e.g. new products or new technology could be developed based on the information), or potential (e.g. laboratory results or interim breakthroughs and so on). Notwithstanding, the information must be capable of bringing a competitive edge to the owners. In other words, if the confidential information cannot bring a competitive edge to the owners, it will not be a trade secret, which is important for deciding whether negative information could be a trade secret. Negative information generally refers to information about what not to do, for example, relevant information about records of failures during development. Some negative information or broken negative information cannot bring any competitive edge to the owners. Negative information with commercial value that is capable of bringing a competitive edge is information from which positive and useful information can be derived. ‘Rights owners have taken security measures’ It is important for rights owners to take proper protective measures based on the information’s commercial value and other specific circumstances to prevent information leakage. Generally speaking, the People’s Court will decide whether or not rights owners have employed security measures according to the relevant information carrier,...

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