Core Viewpoint - The Shanghai Third Intermediate People's Court ruled on July 28 that 14 former employees of a company infringed on Huawei's trade secrets, resulting in prison sentences and fines totaling 13.5 million RMB [1] Group 1: Case Details - The case involved 14 individuals who were found guilty of stealing trade secrets related to chip technology [3] - The main suspects, including former executives Zhang and Liu, established a new tech company and lured former employees to join, encouraging them to illegally obtain proprietary information before leaving [3] - The stolen technology had over 90% similarity to the original company's trade secrets, leading to significant financial losses for the original company [3] Group 2: Sentencing Outcomes - Zhang was sentenced to 6 years in prison and fined 3 million RMB [4] - Other sentences included: - Zhou: 5 years and 1.2 million RMB fine - Liu: 4 years and 1.5 million RMB fine - Gu: 3 years and 1.2 million RMB fine - Gao: 2 years (suspended) and 800,000 RMB fine - Wang: 1 year 9 months (suspended) and 700,000 RMB fine - Zhao: 1 year (suspended) and 200,000 RMB fine - He: 1 year 6 months (suspended) and 700,000 RMB fine - Others received varying sentences and fines [4] Group 3: Company Involvement - The company involved in the case is identified as Zunpai Communications Technology (Nanjing) Co., Ltd., which has garnered significant media attention due to the case [5]

Core Viewpoint - The Shanghai Third Intermediate People's Court has ruled on a case involving the infringement of Huawei's trade secrets, resulting in significant penalties for former employees of a related company [1] Group 1: Legal Outcomes - A total of 14 former employees from Qianhai Si were sentenced, with 5 receiving actual prison time [1] - The main defendant, Zhang, was sentenced to 6 years in prison and fined 3 million yuan [1] - The remaining 13 employees received prison sentences ranging from 2 to 5 years, with fines varying from 200,000 to 1.5 million yuan [1]

Core Viewpoint - The Supreme Court has issued judicial interpretations and typical cases regarding labor disputes, specifically addressing the indiscriminate signing of non-compete agreements by companies, which impose high penalties and severely restrict workers' employment rights. This interpretation will take effect from September 1 [1]. Group 1 - To prevent the leakage of trade secrets and unfair competition, the judicial interpretation states that non-compete clauses agreed upon by employers and employees are legally valid, and employees who violate these agreements must bear legal liability [1]. - To curb the "abuse" of non-compete agreements and ensure the orderly flow of talent, the interpretation clarifies situations where non-compete clauses are invalid. Specifically, if an employee is unaware of or has not been exposed to confidential matters, the non-compete clause will not be effective [1]. - In cases where employees fall under the category of non-compete personnel, the scope, region, and duration of the non-compete clauses must correspond to the trade secrets and related confidential matters that the employee is aware of or has been exposed to; any excessive provisions will be deemed invalid [1].

Core Viewpoint - The Shanghai People's Court ruled in favor of Huawei in the "Zunpai Communications infringement of Huawei's trade secrets case," marking a significant victory in Huawei's two-year intellectual property protection battle [1][5]. Group 1: Case Details - Zunpai Communications, founded in March 2021 by former Huawei executive Zhang Kun, was found guilty of systematically stealing Huawei's Wi-Fi 6 chip technology, with over 90% overlap in key technologies [1][5]. - Zhang Kun was sentenced to six years in prison and fined 3 million yuan, while 13 former Huawei employees received prison sentences ranging from 2 to 4 years [5]. - The court's decision reflects a zero-tolerance attitude towards the protection of trade secrets in China, aiming to deter malicious competition in the tech industry [5]. Group 2: Impact on Huawei - Huawei incurred direct economic losses exceeding 900 million yuan in R&D investments for Wi-Fi 6/7 technologies, with potential annual patent fee losses of 100 to 200 million USD if Zunpai's chips were mass-produced [5]. - The leak of technology has hindered Huawei's ability to negotiate in international standard discussions for Wi-Fi 7, forcing the company to disclose key patents prematurely and weakening its bargaining power [5]. Group 3: Industry Implications - The case is seen as a turning point for the semiconductor industry in China, shifting from "barbaric growth" to "compliance innovation," emphasizing the need for original technology and adherence to legal boundaries [7]. - The incident may lead venture capitalists to conduct stricter reviews of startup teams' technology sources to avoid "tainted financing" [7].

Core Viewpoint - The arrest of Feng Dengkai is just a chapter in the ongoing dispute between CATL and Hichern Energy, highlighting the competitive tensions in the battery storage industry [1][15]. Group 1: Company Background - Hichern Energy has rapidly ascended to become the third-largest energy storage battery manufacturer globally, surpassing competitors like BYD and CATL within just two years of mass production [4][5]. - The company is valued at 25 billion RMB before its IPO, with significant backing from investors such as Bank of China Asset Management and CICC [5]. - Hichern Energy's projected revenue for 2024 is 12.9 billion RMB, with a net profit of 288 million RMB, and its core business has a compound annual growth rate (CAGR) exceeding 160% [5]. Group 2: Legal Disputes and Allegations - CATL has initiated legal action against Hichern Energy for unfair competition, claiming that Hichern's 587Ah battery cell closely resembles CATL's patented products, with only a 4.4% deviation in energy density [5][15]. - Feng Dengkai's arrest for allegedly infringing on trade secrets is part of CATL's broader strategy to protect its intellectual property and competitive edge [5][14]. - The ongoing legal battles and Feng's arrest could significantly impact Hichern Energy's IPO process, raising concerns about internal controls and information disclosure [14][15]. Group 3: Industry Context - The energy storage battery sector is currently embroiled in a price war, putting financial pressure on companies like Hichern Energy, which has nearly 10 billion RMB in debt against 6.6 billion RMB in cash and restricted deposits [5][14]. - The rapid growth of Hichern Energy has drawn scrutiny from CATL, which has become increasingly vigilant about protecting its technological advantages and preventing talent poaching [20][21]. - The competitive landscape has shifted, with many former CATL employees now occupying key positions in rival companies, leading to heightened tensions and legal disputes [21][22].

Core Viewpoint - The recent release of the "Draft Regulations on the Protection of Trade Secrets" is a significant step towards establishing a trade secret protection system in China, addressing challenges posed by the digital age and enhancing the protection of rights holders [1][2]. Group 1: Challenges in Protecting Trade Secrets in the Digital Age - The core elements of trade secrets include secrecy, value, and confidentiality, which face challenges in the digital era due to the electronic storage of information and the ease of data replication [2][3]. - Internet reliance increases the risk of trade secret theft through cyber threats and potential failures in confidentiality measures due to cloud service complexities [2][3]. - New technologies like artificial intelligence and the Internet of Things create novel trade secrets that existing laws struggle to protect adequately [3]. Group 2: Direction of Trade Secret Protection Rules - The draft regulations clarify the elements constituting trade secrets, including definitions of "not known to the public," "commercial value," and "taking confidentiality measures," enhancing the legal framework for protecting trade secrets [4][5]. - A systematic trade secret protection framework is proposed, shifting from reactive to proactive measures, emphasizing the roles of various stakeholders in the protection process [6][7]. - The draft regulations detail the types of actions that constitute trade secret infringement, aiming to improve the applicability and effectiveness of the law in practice [7]. Group 3: Focus Points for Trade Secret Protection in the Digital Era - There is a need to refine definitions and elements related to trade secrets to unify enforcement and judicial standards, reducing ambiguity in legal applications [8]. - The shift from "post-infringement remedies" to "prevention" is emphasized, encouraging businesses to establish robust confidentiality systems and risk management mechanisms [8][9]. - As Chinese companies expand internationally, there is an increasing demand for foreign-related trade secret protection, necessitating the development of a system aligned with international standards [9].

Group 1 - The report outlines the trends and characteristics of civil, criminal, and administrative cases related to trade secret protection in China from 2014 to 2024, highlighting the need for improved legal frameworks and enforcement mechanisms [1][2][21] - Civil cases have shown a significant increase, peaking at 591 cases in 2019, while criminal cases have remained stable at an average of about 112 cases per year [1][2][19] - The majority of civil cases (over 80%) are related to trade secret infringement, with technical secret disputes being 1.7 times more prevalent than business secret disputes [1][2][28] Group 2 - The geographical distribution of cases is heavily concentrated in economically developed regions, with Guangdong, Shanghai, and Beijing accounting for 41.7% of civil cases [1][2][36] - The average trial duration for civil cases is 156 days, significantly longer than for ordinary civil cases, primarily due to the complexity of evidence [2][21] - The report indicates that the average compensation awarded in civil cases is 7.46 million yuan, but 66% of cases end in withdrawal, with statutory compensation being the norm [2][19] Group 3 - The report emphasizes the importance of strengthening preemptive measures for trade secret protection, such as improving confidentiality systems and signing non-compete agreements [2][21] - It suggests that companies should prioritize criminal reporting when evidence is sufficient, while civil litigation or administrative complaints can be pursued when evidence is lacking [2][21] - The report calls for collaboration among judicial, administrative, and corporate entities to enhance trade secret protection and proposes lowering the burden of proof and increasing compensation levels [2][21]

Group 1 - The core viewpoint of the news is the introduction of the first "Guide for the Protection of Trade Secrets and Enhancement of Innovation Capability for Time-honored Brands" in Huangpu District, aimed at safeguarding the core techniques and recipes of these brands from potential leakage due to personnel turnover [1] - The guide helps enterprises understand the basic concepts of trade secrets, identify application scenarios, build a protection system, clarify legal remedies, and distinguish between trade secret protection and intangible cultural heritage transmission [1] - The guide specifies potential "secret points" that could become trade secrets for time-honored brands and assists in formulating layered protection strategies for intangible cultural heritage trade secrets [1] Group 2 - Huangpu District also launched the first trade secret insurance and the first trade secret protection alliance for time-honored brands, providing full lifecycle protection for these enterprises [2] - The insurance mechanism helps complete an internal "check-up" of trade secret systems before purchasing insurance, enhancing the construction and execution of these systems [2] - The alliance, consisting of members from the Shanghai Chinese Time-honored Brand Association and representatives of time-honored enterprises, aims to address challenges in craft transmission, digital transformation, and cross-industry cooperation regarding trade secret protection [2]

Core Viewpoint - The article discusses the efforts of the Tai'an Market Supervision Administration to enhance the protection of commercial secrets among enterprises, highlighting initiatives, achievements, and future plans aimed at fostering innovation and compliance in the business environment [1][2]. Group 1: Achievements and Initiatives - Since the implementation of the three-year action plan for strengthening commercial secret protection (2023-2025), the Tai'an Market Supervision Administration has established 7 protection bases and 108 guidance stations, and cultivated 163 benchmark enterprises [1]. - The administration has conducted the "Enterprise Commercial Secret Protection Capability Improvement Service Month," visiting nearly 160 enterprises and holding over 50 legal training sessions, benefiting more than 700 enterprises [1]. - The city of Feicheng has been approved as a "Shandong Province Second Batch Provincial Commercial Secret Protection Innovation Pilot Area," and the Tai'an High-tech Zone's commercial secret protection work has been recognized as an excellent case for the 2024 annual "Law and Dare" legal construction [1]. Group 2: Future Plans and Focus Areas - The market supervision system will continue to emphasize three key areas during the third "Enterprise Commercial Secret Protection Capability Improvement Service Month," which includes enhancing enterprise commercial secret protection, regulating competition order, and promoting high-quality economic development [2]. - There will be a focus on strengthening publicity to create a robust atmosphere for commercial secret protection, guiding enterprises to enhance legal awareness and compliance concepts [2]. - The administration plans to establish a one-stop comprehensive service window for commercial secret protection, integrating consultation, guidance, and rights protection functions tailored to local characteristics [2].

Core Viewpoint - Shenzhen Municipal Market Supervision Administration has launched a "Commercial Secret Protection" service column to provide a one-stop service for enterprises, focusing on policy dissemination, learning resources, risk prevention, and foreign-related services [1] Group 1: Service Structure - The service column consists of four core sections: "Notifications and Announcements," "Activity Highlights," "Learning Area," and "Thematic Services," creating a multi-dimensional and interactive service system for commercial secret protection [1] - The "Notifications and Announcements" section publishes relevant policy documents, activity previews, and public information to keep enterprises updated on regulatory dynamics [1] - The "Activity Highlights" section showcases various information related to training, results release, and enterprise services through a visually engaging format, promoting experience exchange and sharing [1] - The "Learning Area" includes three sub-sections: "Standards and Guidelines," "Typical Cases," and "Practical Research," providing various learning resources to enhance enterprises' practical capabilities in commercial secret protection [1] - The "Thematic Services" section integrates three special services, including a regularly updated list of commercial secret protection service points across the city, facilitating enterprises' access to professional support [1] Group 2: Online Services and Features - As of June 2025, there will be 74 commercial secret protection service points in Shenzhen, covering all 11 districts of the city [2] - The online "Health Check" service and a 30-day free "Diagnosis" are highlighted features of the third "Enterprise Commercial Secret Protection Capability Enhancement Service Month" [2] - The online "Health Check" service, developed in collaboration with Deepin Technology Co., utilizes expandable data leakage prevention technology (XDLP) to intelligently detect, warn, and trace the flow of commercial secret data [2] - Enterprises can apply for the "Health Check" to refine their commercial secret management strategies and conduct comprehensive audits of file transmission routes across various platforms [2] - The service aims to provide real-time, embedded, and continuous assessments of data flow, helping enterprises identify and address management vulnerabilities from the source [2] Group 3: Application Process - Enterprises interested in participating in the online "Health Check" can submit applications via a QR code, choosing between "Self-Registration" or "IT Assistant Support" for the assessment [3] - Upon completing the 30-day free assessment, enterprises will receive a detailed "Commercial Secret Management Risk Online Health Check Report," highlighting risks across various dimensions [3] - Market supervision departments can also provide one-on-one on-site guidance services by linking experts to assist enterprises [3]