Since 2013, public investigation units have investigated 57 cases of trade secrets. Only 27 cases were prosecuted, less than half. And, only two cases reached a verdict. The prosecutor of Hsinchu District Prosecutors Office (Taiwan), Liu, I-chun expresses that after analysis, there are three reasons for cases of non-prosecutorial disposition and acquittal.
Hsinchu District Prosecutors Office and the Investigation Bureau, Ministry of Justice of the Republic of China (Taiwan), Hsinchu Science Park Bureau, and the Allied Association for Science Park Industries jointly held a symposium on "Internal Control Measures of Trade Secrets and Crime Investigation Conduct". 81 companies and over 100 people participated in the symposium. Minister of Justice, Chiu, Tai-san stated that since 2013, public investigation units investigated 57 cases of trade secrets. 27 cases were prosecuted, but only two cases reached a verdict.
To assist businesses, Chiu said that the Ministry of Economic Affairs, Ministry of Justice (MOJ), Ministry of Science and Technology, Ministry of Labor, National Development Council and the Investigation Bureau of MOJ would set up an ad hoc group for trade secrets, and the Investigation Bureau of MOJ and Prosecutors Offices would form a "Quick Combat Force".
Liu reported on "The Investigation Conception of Trade Secret Cases" in the symposium. She stated at the opening that public investigation units would not consider cases of trade secrets not important, but the same as what industrial circles believed that trade secrets are related to the knowledge and economic lifeline of the high-tech industry, involving the international competitiveness of the industry.
Using the recent investigation of the trade secret case of Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) as an example, Liu pointed out that it took less than 24 hours from the reception of the case to the implementation of the search, and the defendant was restricted to leave the country after 12 hours.
The entire case from reception to closing and prosecution lasted a total of three months. Liu asserted that there was not any delay in the process. This is the result of concerted effort of cooperation between the public investigation units and the company, and the two sides had a great time working together.
However, Liu expressed that the battlefield of trade secret cases is difficult. After analyzing cases of non-prosecutorial disposition and acquittal, the three main reasons for the results are lack of reasonable confidentiality measures, trade secrets not specific enough, and lack of secrecy.
Liu stated that some companies lack internal auditing system and thus have no relevant records. Besides being unclear about what the defendant has stolen, the companies are also not able to prove the theft.
Liu lamented that companies have misunderstood public investigation units. Currently, there is no basis for mutual trust. She said, companies and public investigation units should understand each other and be on the same side. They should communicate fully to reduce friction, respect professionalism to build cooperation, develop complete mutual trust and common goals, so that the investigation of trade secret cases can be successful.
Trade secrets are important assets of companies and are protected by the Trade Secrets Act of R. O. C. (Taiwan). What should be paid attention to is that not all methods, techniques, processes, recipes, programs, designs or other information available for production, sale or operation are the "trade secrets" protected by the Trade Secrets Act of our country. They still have to meet the specific requirements to be the subjects protected by the Trade Secrets Act.
In addition to the Trade Secrets Act, companies can also consider protecting their important information in the form of confidentiality contract and business strife limitation clause. With regard to how to define trade secrets, how to take reasonable protection measures, and how to set up legal and effective confidentiality contract and business strife limitation clause, please consult with the professional team of our company.
