Confidential Information or Business Secrets
The “Non-disclosed Information” referred in TRIPS equals to the “Confidential Information” or “Business Secrets” within China. In my view, there are some connections and differences between confidential information and business secrets (as one part) and Non-disclosure Obligations (as another part), i.e. the different legal consequences may resulted from the breach of Non-disclosure Obligations under any contract and the infringement of business secrets, in particular, the civil, administrative or criminal liabilities may arising from the infringement of business secrets, provided, however, the breach of Non-disclosure Obligations (except the confidentiality of business secrets) under any contract may
only subject to the civil liabilities.
As stipulated in Article 10 of the Anti-unfair Competition Law of the People’s Republic of China: “Business Secrets means the utilized technical information and business information which is unknown by the public, which may create business interests or profit for its legal owners, and also is maintained secrecy by its legal owners.”
As have been stipulated in Article 10 of the Interpretation of the Supreme People’s Court on Some Issues Concerning the Application of Law in the Trial of Civil Cases Involving Unfair Competition:“In case the relevant information has actual or potential commercial value, and can bring competitive advantage for the legal owners, it shall be affirmed as “capable of bringing about benefits to the legal owners, and having practical applicability” prescribed in Paragraph 3 of Article 10 of the Anti-unfair Competition Law.”
Measures Taken on the Non-disclosure Obligations (Confidential Information and Business Secrets):
a) As have been stipulated in Article 10 of the Anti-unfair Competition Law of the People’s Republic of China:
Managers shall not use the following methods to infringe upon Business Secrets:
1. to steal, coerce, or use any other unfair method to obtain the other's Business Secrets;
2. to disclose, use or permit others to use the Business Secrets mentioned in Section 1 of this Article.
3. to violate the contract or the requirement to publish, use or permit others to use the business secrets, which were maintained as secrets by the legal owner of the Business Secrets.
The third Party who knows or should know the illegal activities as first mentioned, and who gains, uses or publishes the Business Secrets shall be looked as activities of infringing upon the others' Business Secrets.
b) As have been stipulated in Article 9 of the Interpretation of the Supreme People’s Court on Some Issues Concerning the Application of Law in the Trial of Civil Cases Involving Unfair Competition:
If it is under any of the following circumstances, it may be affirmed that the relevant information is not unknown to the public:
(1) The information is the common sense or industrial practice for the personnel in the relevant technical or economic field;
(2) The information only involves the simple combination of dimensions, structures, materials and parts of products, and can be directly obtained through the observation of products by the relevant public after the products enter into the market;
(3) The information has been publicly disclosed on any publication or any other mass medium;
(4) The information has been publicized through reports or exhibits;
(5) The information can be obtained through other public channels; or
(6) The information can be easily obtained without any price.
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