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PROTECTING YOUR TRADE SECRETS/IP FROM CHINA · 2014. 11. 18. · Technical or business information...
Transcript of PROTECTING YOUR TRADE SECRETS/IP FROM CHINA · 2014. 11. 18. · Technical or business information...
Dan Harris Practical Aspects of Chinese Law
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PROTECTINGYOURTRADESECRETS/IPFROMCHINA
DANHARRIS
THREE KEYS>
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Structural protection
Good contract
Good registration
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GOOD PARTNER>
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Can be faked
Due Diligence
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Can be illegal
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DUE DILIGENCE
Scrutinize the paper
Delegate. Do not delegate.
Distrust all company info
Look around, ask around
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THE GOOD CONTRACT>
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GUIDELINES
In writing
One language
Excruciating detail
Attorneys’ fees
THE GOOD CONTRACT>
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DISPUTE RESOLUTION
THINK…
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THE GOOD CONTRACT>
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LIQUIDATED DAMAGES
THINK…
WHY BOTHER WITH A CONTRACT?>
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Agreement
Enforcement
Prevention
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WHY BOTHER WITH A CONTRACT?>
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WHAT ABOUT CORRUPTION?
DEAL/CONTRACT>
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Structure your deal and write your contract so that your Chinese partner believes it will make more money
with you than without you
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LITIGATING OUTSIDE CHINA>
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– and they don’t.
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Chinese courts have no obligation to enforce US, UK, Canadian,
or Australian judgments
CHINA COURT REALITIES>
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Yeah, maybe.
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Injunctive relief?
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CHINA COURT REALITIES>
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DISCOVERY
What’s that?
EMPLOYEE CONTRACTS>
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Confidentiality/Trade Secret?YES
Non Compete?
Non Solicitation?
ABSOLUTELY
YES
MAYBE
IP Ownership?
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LICENSING AGREEMENTS>
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Register with the proper government
agency
Make sure you get paid
Non Disclosure Agreements>
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Make it an NNN
Good Test
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TRADE SECRET DEFINED>
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Technical or business information unknown to
the public
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Has economic value
Trade secret owner has undertaken reasonable measures to maintain its
confidentiality
UNFAIR COMPETITION LAW>
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Disclosing, using, or
allowing others to use a trade
secret in breach of an
agreement or a confidentiality obligation
Acquiring another’s trade secret by theft,
inducement, duress, or other illegal
means
Disclosing, using, or allowing
others to use the trade secret of another
acquired by illegal means
A third‐party acquiring, using, or disclosing a trade secret
that he knew or should have
known to have been
misappropriated in any of the above ways
Liability for trade secret misappropriation:
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OTHER TRADE SECRET LAWS>
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CONTRACT LAW COMPANY LAW LABOR LAW
TRADE SECRET CASE>
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PLAINTIFF HAS BURDEN OF PROVING:
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Infringed information is a trade secret
Defendant is using
information substantially similar to the trade secret
Defendant obtained
information improperly
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WHERE TO ENFORCE?>
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ADMINISTRATIVE
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CIVIL
CRIMINAL
CHINA INTELLECTUAL PROPERTY>
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NDAs can be powerful
Register early and often
It’s more than just legal
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IP REGISTRATIONS>
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PATENTS
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TRADEMARKS
COPYRIGHTS
LICENSING
AGREEMENTS
CONTACT
<Dan [email protected]
USA | China | Mongolia>chinalawblog.com
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