News from The Third Branch of Shanghai People’s Procuratorate

https://www.ipeconomy.cn/index.php/index/news/magazine_details/id/6385.html

The cases of infringement of trade secrets include illegal use, public disclosure and other forms. The Shanghai People’s Procuratorate accurately judge the amount of crimes according to different cases, so as to achieve precise strikes on intellectual property crimes.

Rui company is mainly engaged in the development, manufacturing and sales of disposable sanitary products production equipment production line. The individual Ping was the manager of the mechanical design department of Rui Company. After leaving the company in June 2013, Ping joined Fu Company, which was also engaged in the production and equipment of sanitary products, as a technical guide. Ping illegally disclosed some technical secrets obtained from Rui Company to Defendant Fang XX, the operator of Fu Company, and gave them to six defendants Gong, Hu (all of whom left Rui Company and joined Fu Company) for use. 

Knowing that the above technical information was the trade secret of Rui Company, Fang still instructed Gong and others to use and sell some of the technical secrets to customers in Jiangsu and Hangzhou, and also instructed Hu and others to apply for patents in the name of Fu Company and disclose the other technical secrets publicly.

After audit, it was found that Fu Company sold equipment infringing on trade secrets, resulting in a loss of more than 12.2 million yuan of Rui Company (the following currencies are RMB); After evaluation, the total commercial value of the trade secrets applied and disclosed by Fux Company is more than RMB 20.19 million.

In December 2021, the Third Branch of Shanghai People’s Procuratorate prosecuted seven people, including Fu Company and Fang, on suspicion of violating commercial secrets. In March 2022, Shanghai No. 3 Intermediate People’s Court fined the defendant, Fu Company, RMB 10 million for violating commercial secrets. The seven defendants were sentenced to prison terms ranging from three to one year, with fines ranging from RMB 8 million to RMB 300,000. The defendants did not appeal, and the judgment has taken effect.