Recently, the Boshan Court concluded the case of Li Moumou's embezzlement and infringement of trade secrets in accordance with the law.
Basic facts of the case
From March 2016 to September 2021, while working at an international trading company in Shandong, the defendant Li Moumou embezzled more than 230,000 yuan of the company's property for false reasons. Since 2021, according to the customer information he mastered during his work in an international trade company in Shandong, Li Moumou violated the confidentiality agreement signed with the company and privately contacted the domestic procurement personnel of two foreign company customers, and organized the supply of goods to complete the transaction after the order, and obtained more than 70 yuan of illegal gains.
On December 20, 2023, the Boshan Procuratorate prosecuted Li Moumou for the crimes of embezzlement and infringement of trade secrets. On February 6, 2024, the Boshan Court made a first-instance judgment after trial, adopted the facts of the procuratorate's accusations and sentencing recommendations, and sentenced the defendant Li Moumou to criminal punishment for the crimes of embezzlement and infringement of trade secrets, recovered more than 20 yuan of economic losses for the victim unit, an international trade company in Shandong, and ordered the defendant Li Moumou to return more than 70 yuan of economic losses caused to the victim unit due to the infringement of trade secrets.
Typical significance
One
Strictly punish crimes of infringing on trade secrets, and maintain a fair and orderly market competition environment. The State encourages fair competition, but criminal acts of violating confidentiality obligations, illegally disclosing, using, or allowing others to use trade secrets in their possession, and seeking market share or competitive advantage shall be punished by law. The defendant in this case violated the confidentiality agreement and the principle of good faith by using the trade secrets he knew to seek his own benefit, causing the victim unit to suffer heavy losses in its production and operation, and should bear corresponding criminal responsibility.
Two
Guide the victim unit to participate in the litigation substantively, and reasonably determine the amount of losses. In the course of handling the case, the Boshan People's Court promptly served a notice of litigation rights and obligations on the victim unit, promoted the victim unit's substantive participation in the trial, expressed opinions on the key issues involved in the dispute, and accurately ascertained the facts of the case. On the basis of soliciting the opinions of the victim unit, the Boshan People's Court, in accordance with the relevant provisions of the Anti-Unfair Competition Law and the Interpretation (III) on Several Issues Concerning the Specific Application of Law in Handling Criminal Cases of Intellectual Property Infringement, determined the amount of the victim unit's losses in accordance with the benefits obtained by the defendant as a result of the infringement, and ordered the defendant to make full restitution, effectively protecting the lawful rights and interests of the victim unit.
Links to legal provisions
Criminal Law of the People's Republic of China
Article 271
[Crime of Embezzlement in Public Office] Where a staff member of a company, enterprise, or other unit takes advantage of his position to illegally take possession of the property of his or her own unit, and the amount is relatively large, he is to be sentenced to up to three years imprisonment or short-term detention and a concurrent fine; if the amount is huge, he is to be sentenced to fixed-term imprisonment of not less than three years but not more than 10 years and a concurrent fine; and where the amount is especially huge, he is to be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment and a concurrent fine.
Article 219
[Crime of Infringing on Trade Secrets] Where any of the following acts of infringing on trade secrets are committed, and the circumstances are serious, a sentence of up to three years imprisonment and/or a fine is to be given, and where the circumstances are especially serious, a sentence of between three and ten years imprisonment and a concurrent fine:
(1) Obtaining rights holders' commercial secrets through theft, bribery, fraud, coercion, electronic intrusion, or other improper means;
(2) disclosing, using, or allowing others to use the rights holder's commercial secrets obtained through the means described in the preceding paragraph;
(3) Disclosing, using, or allowing others to use the commercial secrets in their possession in violation of confidentiality obligations or rights holders' requirements for the preservation of commercial secrets.
Clearly knowing the conduct listed in the preceding paragraph, obtaining, disclosing, using, or allowing others to use the trade secret, it is considered an infringement of trade secrets.
"Rights holders" as used in this article refers to the owners of trade secrets and users of trade secrets with the permission of the owner of trade secrets.
Anti-Unfair Competition Law of the People's Republic of China
Article 17 Paragraph 3
The amount of compensation for a business operator that has suffered damage as a result of an act of unfair competition shall be determined on the basis of the actual losses suffered by the infringer as a result of the infringement, and where the actual losses are difficult to calculate, it shall be determined on the basis of the benefits obtained by the infringer as a result of the infringement. The amount of compensation shall also include the reasonable expenses paid by the business operator to stop the infringement.