Trade Secret Protection in China: New Report

October 11, 2013
Categories: Trade Secret Theft

Trade Secret Protection in China: New Report

The protection of trade secrets – secret information that has commercial value and is subject to reasonable steps to protect it (TRIPS Art. 39) – continues to be an issue of importance around the globe. Indeed, as outlined in’s whitepaper: Trade Secret Theft: Managing the Risk in Global Supply Chains, most every company is at risk.

The US-China Business Council (USCBC) has issued a report highlighting challenges and recommendations for improving trade secret protection in China.  A few highlights from the report:

  • Trade secrets have increasingly become a critical component of companies’ intellectual property (IP) portfolios in China alongside more visible forms of intellectual property, such as patents and trademarks. According to respondents of the US-China Business Council (USCBC) 2013 member company survey, 40 percent of respondents selected trade secrets as the IP of most concern.
  • In response to such views, Chinese government agencies have paid greater attention to trade secrets, gradually prioritizing trade secrets on the domestic IP agenda and increasing engagement with their international counterparts.
  • Additional steps to improve China’s legal environment for, and protection of, trade secrets would promote the growth and success of enterprises in China and around the world.

In the paper, USCBC highlights the challenges associated with China’s maturing legal framework and limited experience in working with trade secret cases. It also makes recommendations such as changing existing laws, implementing new policies and practices; and highlights the role of ‘companies, government agencies, and other stakeholders conducting educational initiatives to promote the importance of preserving the confidential nature of this type of information.’

For the official US-China Business Council Report & recommendations follow the link here.

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