New Development in Trade Secret Protection in China

Protection of commercial secrets is always a critical concern for companies doing business in China. Unlike patents or copyrights, commercial secrets have value to the owner only if they remain secret and accessible only to the owner. Commercial secrets exist for two reasons. First, not all valuable techniques and materials are patentable or copyrightable, therefore the sole means of their protection is through confidentiality. Secondly, unlike patent or copyright, trade secrets enable their owner to monopolize and utilize his/her proprietary technology or information in perpetuity, as long as their confidentiality is well-maintained. Therefore, many companies spend tremendous resources in trying to protect their commercial secrets.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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