How can trade secret misappropriation disputes be litigated in Chinese courts, despite the system’s lack of US-style discovery tools? Many companies, especially foreign companies, might be hesitant to even think about bringing trade secret misappropriation actions in China for many reasons, but perhaps most importantly, based on concerns over how to collect evidence. READ MORE
Yaoli (Shelley) Zhang, a partner in Orrick’s Beijing office, is a member of the Intellectual Property Group. Her practice focuses on IP prosecution and enforcement. Shelley has extensive experience in patents, trademarks, domain names, copyrights and trade secrets.
Shelley's related IP experience includes the following:
- Patent invalidation proceedings, anti-counterfeiting, anti-piracy efforts and patent and trademark enforcement litigation in China.
- Prosecution of patent and trademark, including application preparation, office actions/oppositions procedures and reexamination procedures.
- Enforcement and technology transfer/licensing arrangements for substantial patent and trademark portfolios for companies doing business in China.
- Advising on IP protection strategies, R&D related IP issues and matters in relation to export and import control of technology.
- Assisting Chinese companies in Section 337 U.S. International Trade Commission investigations, patent infringement litigations and product liability litigations in the U.S.
- IP due diligence and portfolio counseling.
Posts by: Shelley Zhang
Protecting Trade Secrets in China
Trade secrets were first introduced into China law through the Article 10 of the “Anti-Unfair Competition Law of China” (effective Dec. 1, 1993). This defines a “trade secret” as technological or business information that (a) is unavailable to the public; (b) creates economic benefits for its owner and is of practical utility; and (c) is subject to measures taken by its owner to maintain its secrecy. And it defines “misappropriation” as taking place when:
- a party acquires the owner’s trade secret by improper means such as theft, economic inducement, or coercion;
- a party discloses, uses, or allows other parties to use the trade secret acquired by these means;
- a party discloses, uses, or allows other parties to use the trade secret in violation of an agreement with, or requirement by, the owner to protect the trade secret; or
- a third party acquires, uses, or discloses other parties’ trade secrets with the actual or presumed knowledge of the above-mentioned illegal acts.