China Trade Secret Ruling Shows US Cos. Path To Protection

By Steve Grimes, Leon Liu and Jacob Harding (May 24, 2021, 6:13 PM EDT) -- In February, China's Supreme People's Court upheld a ¥159 million, or roughly $25 million, trade secret infringement award in Jiaxing Zhonghua Chemical Co. Ltd. and Shanghai Xinchen New Technology Co. Ltd. v. Wanglang Group Co. Ltd.

The judgment amount is on par with recent verdicts in the U.S. under the Defend Trade Secrets Act and Section 337 actions before the U.S. International Trade Commission, and it represents China's increased interest in protecting trade secrets.

Historically, companies were hesitant to seek to enforce their trade secrets in a Chinese court and often chose other forums. For example, companies are increasingly filing Section...

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