SAINT ISLAND INTELLECTUAL PROPERTY GROUP

In recent years, there are more and more cases of employees stealing trade secrets from their employers. This has undermined Taiwanese companies’ efforts of research and development and affected fair trade competition. International corporate espionage is also on the increase. To safeguard Taiwanese companies’ trade secrets and maintain Taiwan’s international competitiveness, Taiwan’s Legislature passed amendments to the Trade Secret Act on January 11, 2013. The amended Act was put into effect on February 1, 2013.

The amended Act has introduced criminal liabilities for offenders. Any person who obtains, uses or discloses a trade secret by stealing or unauthorized reproduction with the intent of making personal gain or benefiting a third party or injuring the interest of the trade secret holder is liable for imprisonment up to five years and a fine of between NT$1 million and NT$ 10 million. Where such personal gain exceeds the maximum fine, the fine may be increased to up to three times the gain.

In addition, in view of the poaching of employees from Taiwan’s technological companies by foreign competitors in an attempt to steal trade secrets, the penalties are toughened. For those who misappropriate trade secrets for the purpose of using them in places outside Taiwan, the statutory penalty is imprisonment of one to ten years, plus a fine of NT$ 3 million to NT$ 50 million. Where the personal gain of the offender exceeds the maximum fine, the fine may be increased to two or ten times the gain.