Recently, the Yan Shang Team of Beijing Longan (Guangzhou) Law Firm successfully won a full victory in a commercial secret dispute involving a client list caused by employee turnover, represented by the defendant. Against the background of the plaintiff having some evidence clearly unfavorable to the defendant and adverse court rulings, through the professional handling by the team, the court fully accepted our defense arguments and dismissed all of the plaintiff’s claims, and the judgment has now taken effect.
This judgment not only resolved a major operational crisis for the client but also provides a reference for handling similar cases. The client specifically thanked the team and presented a banner with the following evaluation: “Extreme professionalism, comprehensive planning, multi-dimensional defense, top-tier commercial secrets,” which is a full affirmation of the work of the Yan Shang Team.
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I. Case Background
This case is a commercial secret dispute involving a client list in the field of information service. The plaintiff and defendant were both agents of the same well-known software. After five defendants left the plaintiff’s firm, they jointly established a new company and continued to engage in related business. Due to the high loyalty of service personnel in this industry, some clients previously served by the former defendants continued to cooperate with their new company. The plaintiff believed that these actions violated its commercial secrets and thus filed a lawsuit, demanding that the defendant stop cooperating with the above-mentioned clients and compensate for substantial economic losses.
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II. Client Requirements and the Opportunity to Engage the Law Firm
At the time of the lawsuit, the defendant company was in a critical period of development. The asset preservation measures arising from the case severely affected the company’s normal operation and the lives of the individual defendants. The case also undermined the client’s trust in the defendant company, and the defendant’s business expansion was severely hindered. Therefore, resolving this case quickly and completely was crucial for the client.
Based on the above circumstances, the client was very cautious when selecting a lawyer. After searching through multiple channels and comparing teams from several law firms, it actively contacted the Yan Shang Team. After listening in depth to our analysis of the case focus, defense strategies, and future plans, the client immediately decided to entrust us.
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III. Case Handling Strategy and Challenges
The case was complex, involving 6 defendants and over 40 client entities, with more than ten thousand pages of evidence, including over three hundred historical contracts and invoices. It took three days just to verify the evidence. In addition, the team successfully obtained the testimony of nearly ten witnesses.
To efficiently clarify the facts, the team adopted a “companionate” service model, assisting the client in systematically organizing all business transactions, creating a “Cooperation Information Inventory” and updating it dynamically, so as to accurately understand the specific situation of each client. At the same time, to directly refute the plaintiff’s claims, the team carefully prepared visual charts to clearly present the composition of the client list and our key defense points to the court.
In legal defense, the team constructed a multi-dimensional defense system around multiple dimensions such as “components of a commercial secret (secrecy, confidentiality, value),” “elements for determining infringement of a commercial secret,” “defense based on personal reliance,” and “freedom of market competition.” By deeply engaging from five dimensions: case facts, law, legal principles, interest balance, and value orientation, through various forms such as court statements, legal documents, party explanations, witness testimony, and client letters, our views were fully presented. For each client accused by the plaintiff, the team set at least three counterarguments and submitted over 30,000 words of detailed defense arguments.
In case preparation, the team adhered to the “five ones” litigation work concept, namely “one case, one study; one case, one article; one case, one category; one case, one sharing; one case, one award.” Regarding the issue of infringement of a client list commercial secrets involved in this case, the team conducted big data research on similar cases and wrote professional articles and conducted thematic sharing, using individual cases as a starting point to systematically organize the judgment approaches of similar cases. Based on solid theoretical knowledge and rich practical experience, the team precisely formulated litigation strategies and finally won the case.
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IV. Judgment Result and Typical Significance
The court finally fully accepted our defense arguments, determining that the client information claimed by the plaintiff did not constitute a commercial secret, and some clients voluntarily continued transactions based on trust in the defendant due to personal reliance. The defendant’s actions did not constitute infringement. The judgment also fully accepted our legal reasoning, clearly stating: “There is no universal quantitative standard for determining whether client information constitutes a commercial secret; it needs to be valued in light of the legislative purpose of the Anti-Unfair Competition Law. Free trade and circulation are essential characteristics of a market economy. If general transaction information is protected as commercial secrets, it may lead to improper monopolies and suppress healthy market competition.”
Against the judicial background of reduced burden of proof and generally higher compensation amounts after the revision of the Anti-Unfair Competition Law, this case provided a successful defense example for the defendant. The strategy of Longan lawyers not only closely adhered to the facts of the individual case but also took into account industry characteristics and legal value orientation. Its defense approach and the court’s judgment have significant reference value for responding to such cases.
Happy Time
Introduction to the Yan Shang Law Firm’s Commercial Secret Legal Services
Team Introduction
The Yan Shang Intellectual Property Team was founded by Lawyer Wu Rangjun, deputy director of the management committee of Beijing Longan (Guangzhou) Law Firm and senior partner. The team consists of over ten professional talents, who graduated from well-known domestic and international universities such as Peking University, Edinburgh University in the UK, Renmin University of China, Sunyong University, Macau University, South China University of Technology, and Jinan University. They possess solid legal expertise and interdisciplinary perspectives.
Introduction to the Team Leader:
Lawyer Wu Rangjun graduated from Peking University and holds dual qualifications as a lawyer and patent agent. Current positions include:
Member of the Intellectual Property Professional Committee of the National Lawyers Association
Consulting expert on civil and administrative cases for the Supreme People’s Procuratorate
Director of the Commercial Secret Professional Committee of the Guangzhou Intellectual Property Research Association
Director of the Longan Bay Intellectual Property Research Center
Arbitrator of the Guangzhou, Xiamen, and Zhuhai Arbitration Commissions
Expert in the Guangdong Foreign Lawyers Leadership Pool
Part-time professor at the Law School of Guangdong University of Foreign Studies
External tutor at the Law School of South China University of Technology
Major Honors:
Starlight Professional Star of Young Lawyers of the Guangzhou Lawyers Association
Top 15 of LegalBAND China Lawyers Special Recommendation List (gaming and esports)
Top Client Lawyer in South China
50 Intellectual Property Elite Lawyers under 50 in China
Top 10 Guangdong Bay Intellectual Property Lawyers
Brand Star Lawyer in the Entertainment and Sports Field of Law New Media Society
Top 20 Intellectual Property (copyright) Lawyers of Law New Media Society
Business Areas
The team has always adhered to the service philosophy of “professional depth and warm service” and the development concept of “professionalism + industry”. Having been engaged in commercial secret legal services for over ten years, they deeply understand the characteristics of different industries and approaches to commercial secret protection. With the mindset of “understanding the industry, being proficient in technology, and knowing the law”, they are committed to safeguarding the development of clients through professional services. The team is dedicated to solving the main legal issues faced by industry clients across the whole chain and one-stop manner. Its business areas include civil and criminal litigation regarding commercial secrets, administrative investigations, non-compete litigation, commercial secrets and non-compete compliance system construction.
Service Experience
The team has over ten years of experience in commercial secret litigation, representing dozens of cases involving different industries such as chemical, electronics, high-end manufacturing, new materials, semiconductors, and internet. They safeguard clients’ rights through innovative strategies. In addition to litigation, they have provided special services regarding commercial secret and non-compete compliance for various enterprises over ten times.
Some representative cases in commercial secret litigation are as follows:
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Representing a leading listed company in the chemical industry and several technical experts in responding to a commercial secret infringement case filed by a new material company (dismissed all of the plaintiff’s claims);
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Representing a leading internet company in a commercial secret infringement case against the defendant (the claim for 9 million yuan and punitive damages were fully supported);
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Representing a company and several core members in responding to a commercial secret infringement case (dismissed all of the plaintiff’s claims);
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Representing a listed technology company in Taiwan in a case against departing employees for infringing commercial secrets and non-compete issues in the Chinese mainland (successfully preventing employees from continuing competitive business activities);
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Representing a technology company and several employees in responding to a commercial secret infringement case by an electronics technology company (reversed the adverse form of the case and facilitated a settlement between both parties);
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Representing a former R&D director of a listed company in a commercial secret infringement case (successfully reversed the adverse judgment in the second instance and significantly reduced client losses);
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Representing a departing employee in responding to a commercial secret dispute case by the company (led to the plaintiff voluntarily withdrawing the lawsuit);
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Representing a company and its legal representative in responding to a commercial secret dispute case filed by a competitor (won the case fully and dismissed all of the plaintiff’s claims);
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Representing a leading internet company in a case against employees for infringing commercial secrets (the first case in the country to recognize artistic design information as a commercial secret, successfully holding employees accountable);
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Representing an internet company in prosecuting related entities for infringing commercial secrets by stealing company user information (successfully held the defendant accountable through criminal and civil methods);
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Representing a leading internet company in a case against employees for infringing commercial secrets (obtained an administrative penalty ruling within three months and achieved good rights protection results);
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Representing Tencent in handling a case regarding the leakage of “Peace Elite” game skin secrets and won the case (the claim for 1 million yuan and punitive damages were fully supported);
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Representing a Shenzhen technology company in a case regarding integrated circuit layout design infringement and administrative revocation procedures, software code commercial secrets, and patent infringement (facilitated a settlement between both parties).
Professional Research
The team emphasizes the combination of practice and theory. Through case studies and big data analysis, they have published the “Big Data Report on Commercial Secret Protection” and the “Analysis Report on Software Technical Secret Cases”. Entrusted by relevant departments and associations, they have participated in drafting industry guidelines such as the “Guidelines on Commercial Secret Protection for Online Games” and the “Guidelines on Commercial Secret Management and Protection in Green Petrochemical and New Materials Industries”.
Special Lecture Series
The team has been invited to give special lectures on commercial secret compliance management and judicial protection to well-known enterprises such as GAC Aion, Libai Technology Group, Jinfa Technology, Haozhi Machinery, Fangbang Electronics, and Zhongxu Future. Through salons, forums, live broadcasts, and enterprise tours, they continuously share practical insights with various sectors.
Salon Activities
The “Pufa Hui · Intellectual Property” series of salon activities organized by the team have repeatedly focused on the themes of enterprise commercial secret compliance management and judicial protection. They invite senior judges from the Guangzhou Intellectual Property Court, prosecutors from the procuratorate, senior police officers from the Guangzhou Public Security Bureau, expert from appraisal institutions, and heads of commercial secret of well-known enterprises to discuss and exchange ideas on commercial secret compliance management and judicial protection issues.
Invited Lectures
The team has also been invited by local market supervision and administration departments such as Panyu, Nansha, and Haizhu districts in Guangdong Province, the Guangzhou Development Zone Intellectual Property Bureau, the Guangzhou Federation of Industry and Commerce, the Guangzhou Intellectual Property Protection Center, the Guangzhou Intellectual Property Research Association, and the Shanghai Gaming Industry Association, as well as government departments and institutions and industry associations, to share practical experience in commercial secret compliance management and judicial protection.
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Team Honors
>> The intellectual property cases handled by the team have been selected as typical cases by the Supreme Court, many higher courts, and intellectual property courts more than 47 times;
>> For civil and commercial litigation and arbitration cases handled, the “Business Achievement Award” issued by the Lawyers Association has been received more than 17 times;
>> The theoretical research articles written have won awards such as Top Ten Papers and Annual Papers multiple times.