How can trade secret misappropriation disputes be litigated in
Chinese courts, despite the system's lack of US-style discovery
tools? Many companies, especially foreign companies, might be
hesitant to even think about bringing trade secret misappropriation
actions in China for many reasons, but perhaps most importantly,
based on concerns over how to collect evidence.
The case SI Group Inc. and SI Group
(Shanghai) Co., Ltd. ("SI Group") v. Sino Legend
(Zhangjiagang) Chemical Co., Ltd. ("Sino Legend") and Jie
Xu (Final Decision No. 93, Third Civil Division of
Shanghai High People's Court) provides a good reference, both
for trade secret owners and alleged offenders. The case
demonstrates a good approach for a trade secret owner to initiate
legal action, even with limited initial evidence. The case
also offers lessons to an alleged offender regarding how to defend
itself from such a case. Here below we will briefly discuss the
background of this case and particularly
