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Stealing corporate secrets Three former employees were sentenced

The main product encountered the former employee's imitation and sales, but in desperation, a certain technology company in Guiyang filed a lawsuit and sued three former employees of the company's secret company. Recently, the Guiyang Intermediate People's Court made a public verdict in the first trial, and the three defendants were each sentenced to 3 to 4 years and were fined.

It is understood that in 2004, the defendants Ye Moumou, Zhao Moumou, and Song Mou entered the work of a technology company in Guiyang after graduating from university. At the beginning of 2015, three people created a new company because of their joint efforts. They used their position to share the company’s trade secrets. Ye Moumou, a former sales manager, stole company suppliers and customer information; Zhao Moumou, a former process research engineer, copied the company's core technologies and copied the company's core formulas; Song, a former equipment engineer, stole production equipment drawings. Afterwards, the three men resigned and established the Trading Company in April 2015 to use the resources stolen from the victim company to engage in the production and sales of related products.

According to the calculation of the judicial appraisal report, the trio produced and sold reverse osmosis membrane products for infringement of commercial secrets of technology companies, resulting in economic losses of the victims of several million yuan.

Guiyang Intermediate People's Court held that the three defendants deliberately violated the confidentiality system of the technology company and the confidentiality agreement signed with the company and stole key information such as the customer list, formula, and process flow, causing extremely serious consequences for the victim. The three defendants were found guilty of guilty of violating commercial secrets, and Ye Moumou was sentenced to four years’ imprisonment; Zhao Moumou and Song were each sentenced to three years’ imprisonment and fined him.

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What is a trade secret?

Article 219 of the Criminal Law of the People's Republic of China stipulates: “Trade secrets are technical information and business information that are not known to the public, can bring economic benefits to rights holders, are practical, and are subject to confidentiality measures by right holders,” Trade secrets are classified into technical information business secrets and business information business secrets.

Whether the operation or technical information involved in the case belongs to the business secret of the company?

In the above cases, the related company's merchandise supply and sales channels, customer list, price, and other relevant business information, as well as related technical information such as recipes, process flow, and drawings, have not been disclosed to the public and are not publicly known. At the same time, the technology company has made corresponding confidentiality measures for the business information and technical information involved in this case, and signed confidentiality agreements with the employees respectively, defining the scope of protection, deadlines, and specific steps, and clarifying the confidentiality obligations of the employees. Based on this, the court held that the relevant company's merchandise supply and sales channels, customer list, price and other relevant business information, as well as related technical information such as formulas, technological processes, and drawings, are not known to the public and can bring economic benefits to them. Practicality and confidentiality measures adopted by them are business secrets and should be protected in accordance with the law.

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