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ARTICLE · 04 APRIL 2024

Trade Secret Litigation And Arriving At A Definition Of 'Commensurate' Security Measures

CCPIT Patent and Trademark Law Office
CCPIT Patent and Trademark Law Office
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It is well known that the basic elements of trade secrets include...

ChinaIntellectual Property

It is well known that the basic elements of trade secrets include:

they must not be known to the public;
they must have commercial value; and
commensurate security measures must have been taken by the right holder.

The first two elements are relatively easy to understand and prove in trade secrets litigation, while the last element often becomes focus of the lawsuit on which each party spends lots of resources to compete. Some recent cases reveal that the right holders of trade secrets might not have sufficient understanding of the word of 'commensurate', which leads to unsatisfying outcomes in trade secrets litigation.

What kinds of security measures taken by the rights holders are accepted by courts as 'commensurate' in China? What are the underlying theories behind the word 'commensurate'? And what aspects should the rights holders pay attention to when adopting security measures? This article tries to provide answers to these questions based on some

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