What is the Trade Secret Law?

In the marketplace, the one who profits the most is the winner. Competition is common, and competition among peers in various industries is often intense. While competition in an industry might indicate that the industry is thriving, it also presents a serious issue: the fierce competition over business secrets. The business world is like a battlefield, where, in the midst of both open and covert struggles, how do you maintain a leading position and continue to defeat competitors to create even greater profits? The key lies in possessing unique weapons or trade secrets, which allow a company to stay motivated while growing steadily.

"Trade secrets" are exactly the important assets each company guards. Whether it's "technical trade secrets," which include methods, techniques, processes, formulas, programs, designs, etc., or "commercial trade secrets," which include customer data, sales models, business operations, etc., these are crucial assets that need to be well protected by the company. The Trade Secret Law was created to safeguard industry ethics, competitive order, and public interest, preventing competitors from stealing sensitive information and engaging in malicious competition or theft of secrets. However, not everything can be governed by the Trade Secret Law; the following three conditions must be met:

• The information is not generally known to others involved in that field.
• The information has actual or potential economic value because of its secrecy.
• The owner has taken reasonable measures to keep the information confidential.

Penalties for Violating the Trade Secret Law

The importance of trade secrets as a company's lifeblood and tool for generating profits cannot be overstated. Once the relevant laws are violated, penalties in both civil and criminal aspects are inevitable. In civil cases, the victim has the right to demand "injunctions" to prevent further violations. According to Articles 12 and 13 of the Trade Secret Law, those who intentionally or negligently infringe on trade secrets are also liable for compensation. In criminal cases, Article 13-1 of the Trade Secret Law clearly states that anyone who steals, misappropriates, uses fraudulent methods, threatens, reproduces without authorization, or engages in other improper means to obtain trade secrets, or uses or leaks them afterward for personal or third-party illegal benefits or to harm the owner, shall face imprisonment of up to five years or detention, with fines ranging from NT$1 million to NT$10 million. The sentence may vary from one to ten years, depending on the circumstances, such as whether the crime occurs domestically or internationally. Of course, no company wants its important business secrets to be leaked or illegally stolen. However, commercial espionage cases and related news are constantly emerging. How should businesses face the crisis of important information being stolen? How should they react if there are signs of commercial espionage?

What Laws are Violated by Becoming a Corporate Spy? What Are the Charges for Commercial Espionage?

When it comes to commercial espionage, many news events and cases are likely to come to mind. But why would someone choose to become a corporate spy and leak important business secrets to others? Domestically, competitors may offer a high price to purchase confidential information, or they may request that information be obtained through espionage and then directly switch to a rival or competitor’s company. This practice is risky, as the laws that may be violated include imprisonment and fines under the Trade Secret Law (from NT$1 million to NT$10 million), and if the illicit profits exceed NT$10 million, the fine can be tripled based on the illicit proceeds. If the crime is committed internationally, the punishment will be even more severe, with longer prison terms and higher fines. In addition, it could also involve crimes under the Criminal Code, such as breach of trust, leakage of commercial secrets, or using computers to leak confidential information. These crimes will also result in imprisonment and fines. Commercial spies not only harm the trust a company places in them but also deliver a significant blow to the company's profits and future.

How Private Investigators Help Clients: Commercial Espionage Case Studies

When businesses face the risk of their commercial secrets being stolen, is there nothing they can do but watch as their critical business secrets are taken by competitors or others? The answer is absolutely no. Yitong Professional Investigation Agency has accumulated decades of experience. Their professional corporate investigation department has handled hundreds of cases involving business espionage and the theft of company secrets, all with successful outcomes. Whether it is a small or large company, Yitong’s commercial investigation team provides the most professional assistance. Their services include:

• Employee loyalty investigations
• Commercial espionage infiltration investigations
• Evidence gathering for violations of non-compete agreements
• Internal investigations of commercial secret leaks
• Reputation investigations of business partners

With the help of a professional investigation team, companies can profit while avoiding the risks and crises brought about by the theft of commercial secrets and commercial espionage. Yitong’s investigation team, with the motto "Mission Accomplished," will help identify and expose internal corporate spies!