SIPC Released Guidelines for Trial of Trade Secret Infringement Disputes

Recently Shanghai Intellectual Property Court (SIPC) released the Guidelines for Trial of Trade Secret Infringement Disputes, with an aim to further align the thoughts of judgment for cases concerning disputes of trade secret infringement. The Guidelines standardizes the six sections in trials: First it fixes the litigation requests of the Plaintiff. Such content will be included into the scope of review as whether the subject of litigation proposed by the Plaintiff is appropriate, the scope of trade secrets claimed by the Plaintiff, the content of the infringing act claimed by the Plaintiff, the means of responsibility taking claimed by the Plaintiff, whether the Plaintiff has applied for property preservation, evidence preservation or behavior preservation. Second, it fixes the Defendant’s answer to the complaint. Review will be conducted on the Defendant’s answer to the litigation requests and fact ground of the Plaintiff, whether the Defendant has submitted corresponding evidence to prove the relevant claims in its answer to the complaint. If the Defendant’s defense opinions involve an outsider of the case, it will be necessary to review whether there is a necessity to make the outsider a Joint Defendant or a third party. Third, it determines the rules for case trials. It is necessary to ask if the parties involved should prefer a private session. If so, a private session of trial will be conducted. A Statement of Confidentiality Undertaking shall be signed to determine the cross-examination rules for secret evidence. Fourth, it fixes the focus of disputes. Based on the defense opinions of the involved parties, facts without disputes and those of disputes shall be respectively fixed and defined by taking into consideration the major components of the legal relations involved in the case. In later trials, attention will be paid to those facts of disputes for which evidence shall be presented and cross-examination be conducted. Fifth, facts of important cases shall be identified. It is essential to define the specific scope of review, including the review of evidence for trade secret ownership, whether the involved trade secret is legitimate, whether the information involved in the alleged infringing behavior is identical or essentially identical to the trade secret of the Plaintiff, and whether the alleged infringer has “reached” the involved trade secret. Sixth, it defines the civil liabilities of infringement, including the determination of the means of bearing responsibilities: such as ceasing the infringement, eliminating the influence or compensation of damages. Such facts shall be made clear as the losses suffered by the Plaintiff, profits gained by the Defendant through infringement, royalties, and reasonable costs of the patentee.

 

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