深圳经济特区企业技术秘密保护条例 Regulations of Shenzhen Special Economic Zone on the Protection of Technical Secret

ys of confirmation that can be understood by the obligor.

　　Article 23 Enterprises may determine the degree of secrets and the time limit of confidentiality by itself in accordance with the length of life cycle of the technical secret， mature degree of the technologies， and the potential value as well as the market demands of the technologies， etc， unless laws and administrative regulations provide otherwise.

　　Article 24 Enterprises shall determine corresponding confidential measures to the scientific research project that need protecting when it is established.

　　Chapter Ⅳ Legal Liability

　　Article 25 If any individual or organization infringes the technical secret of the enterprise and causes losses， he or it shall bear liability for compensation or other civil responsibilities， and take the reasonable fees that the enterprise being infringed paid for investigating the activities that infringes its lawful rights and interests.

　　Article 26 If the technical secret of the enterprise is infringed and losses are caused， the enterprise being infringed may select one of the following ways to calculate the compensation for the losses：

　　（1） taking the actual losses caused to the enterprise that lawfully owns the technical secret for being infringed as compensation；

　　（2） taking the total incomes that the infringer gains from infringement as compensation.

　　If the act of tort results in the complete openness of the technical secret， the infringer shall compensate the total value of the technical secret. The total value of the technical secret may be assessed by the appraising institution of immaterial assets approved by the State.

　　Article 27 If there exists one of the following acts of tort， the municipal competent technical department shall order the infringement to be stopped immediately and impose a fine more than 30，000 RMB but less than 150，000 RMB in accordance with the circumstances：

　　（1） The person， who bears the obligation to keep the technical secret confidential， discloses or uses this technical secret without the written consent of the lawful owner of the technical secr

et.

　　（2） The person， who bears the obligation of business restriction， holds a post in the enterprise producing the competing products of the same kind， or produces or trade in the competing products of the same kind， without the written consent of the lawful owner of the technical secret.

　　（3） Although the enterprise is fully aware that a person may not hold a post in it for bearing the obligation of business restriction， it still employs that person.

　　Article 28 If any enterprise or individual obtains technical secret through deception， theft， lure by promise of gain， coercion， subornation or other illicit means， the municipal competent technical department shall order it to stop the infringement immediately， return the materials and equipments relevant to the technical secret and impose a fine more than 50，000 RMB but less than 500，000 RMB.

　　Article 29 If any enterprise or individual obtains the technical secret through illicit means mentioned above and discloses， uses or transfers it， the municipal competent technical department shall order it to stop the infringement immediately， return the materials and equipments relevant to the technical secret and impose a fine more than 100，000 RMB but less than 1，000，000 RMB.

　　Article 30 If any individual or enterprise， which is fully aware or shall be aware that the technical secret is disclosed by breaching the contract or obtained through illicit means， assigns， uses or re-discloses the technical secret to others， the assignment contract is invalid and the individual or enterprise takes the joint liability for compensation. The municipal competent technical department seals up the materials and equipments relevant to the technical secret and impose a fine more than 50，000 RMB but less than 300，000 RMB.

　　Article 31 If the enterprise fails to pay confidentiality fees or compensation fees according to the contract of confidentiality or contract of business restriction， it shall take the liabilities for breaching the contract in accordance with the contract of confidentiality or contract of business restriction.

　　Article 32 If any individual or enterprise steals illegally the technical secret lawfully owned by other enterprise， and the circumstances are serious enough to constitute a crime， the judicial department shall pursue the party‘s criminal liabilities with the crime of theft.

　　If any individual or enterprise steals illegally the technical secret lawfully owned by other enterprise and causes great losses to the enterprise， the judicial department shall pursue the party‘s criminal liabilities.

　　Article 33 If the assignee or the person who knows the technical secret doesn‘t know and has no reasonable basis to know that this technical secret is transferred illegally or disclosed by breaching the contract， the liabilities of compensation is taken by the illegal transferor or the discloser who breaches the contract. If the technical secret has not been public yet， the assignee or the person in the know shall stop using it immediately after learning that it is transferred illegally or disclosed by breaching the contract， and take reasonable and effective means to keep it secret. The losses caused to the assignee or the person in the know and the fees of taking confidential measures may be recovered form the illegal transferor or the discloser who breaches the contract. If it could not be recovered， it shall be divided by the enterprise lawfully owning the technical secret and its assignee or the person in the know. The assignee or the person in the know of technical secret may use it continuously with the written agreement of the enterprise lawfully owning it.

　　Article 34 When the dispute about the protection of the technical secret of the enterprise arises between parties， if there is arbitral agreement， the parties may apply for arbitration to Shenzhen Arbitral Commission.

　　Article 3

5 If the parties don‘t accept the penalty decisions， they may apply for review to the Administrative Review Department of Shenzhen People’s Government within 15 days from the date on receiving the notice of a penalty decision； if they don‘t accept the decision of reconsideration， they may file a lawsuit to People’s Court within 15 days from the date on receiving the decision of reconsideration. The parties may also file a lawsuit directly to People‘s Court.

　　If the parties don‘t file a lawsuit delinquently or implement the penalty decisions or reconsideration decisions， the municipal competent technical department may apply for coercive execution.

　　Chapter Ⅴ Supplementary Provisions

　　Article 36 If the content of the technical secret is disclosed in the internal or external mass media， or is used publicly in domestic， it is deemed to be public already.

　　Article 37 Shenzhen People‘s Government may formulate the implementing rules according to these regulations.

　　Article 38 These regulations shall go into effect as of January 1， 1996

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