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15 March 2021
On 13 September 2020 the Supreme People's Court (SPC) and the Supreme People's Procuratorate (SPP) jointly promulgated Interpretation III on Several Issues Concerning the Specific Application of the Law in Handling Intellectual Property Criminal Cases. The judicial interpretation entered into force on 14 September 2020.
The judicial interpretation is the latest attempt of the SPC and the SPP to reduce IP rights crimes and create a business-friendly environment by establishing unified standards in the application of the law in this regard.
The judicial interpretation comprises 12 articles which primarily:
Criminal threshold for misappropriation of trade secrets
Article 4.1.1 of the judicial interpretation lowers the criminal threshold for misappropriation of trade secrets to cover instances where:
Methodology for calculating losses and illegal gains
Article 5 sets out the methodology for calculating losses and illegal gains:
Article 5 sets out the circumstance in which loss may be calculated based on a trade secret's commercial value, provided that the litigious trade secret has become known to the public or has lost its confidentiality due to misappropriation. A trade secret's commercial value may be determined by factors such as the cost of research and development and the gains yielded by implementing the trade secret.
For further information on this topic please contact Mary Ma at Wanhuida Intellectual Property by telephone (+86 10 6892 1000) or email (firstname.lastname@example.org). The Wanhuida Intellectual Property website can be accessed at www.wanhuida.com.
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