Study On Trade Restraint System In The Protection Of Trade Secret

Trade secret is a product of the development of socialistic market economy. In order to keep the advanced position in the competition, an enterprise must possess the trade secret, including the technique information and business information, which is unknown publicity with practical use, great value and can bring the economical benefit and is properly protected by the owner . As of today, the mobility of talents has become a trend and will lead to the lost of trade secrets developed and controlled by the talented people. Thus it has posed the threat to the protection of the trade secrets. In our daily life, disputes over trade secrets have emerged in endlessly due to the employee's leaving the present job to the competitor, thus, the trade secrets are becoming the focus of attention by more and more people.In order to avoid divulging the trade secrets of enterprises, especially the divulgence caused by the talents mobility, more and more enterprises have passed internal regulations and covenants not to compete to forbid their employees to compete with their own enterprise during the duration of employment and for some period after termination of the employment to maintain their market competitive advantage status. However, business restraint is an effective means for the enterprise to protect their trade secrets, in the mean time it also brings some side effects to the society.This paper starts with trade secrets protection and uses it as the base for the discussion of stop competition in the same business and draws the conclusion that talents mobility is the main cause that leads to trade secret infringement and it is necessary to establish the system of trade restraint. After that, the paper elaborates on the meaning of and the theory foundation for trade restraint with the introduction of the trade restraint and introduces the different regulations on trade restraint system in different countries. In addition, the paper analyzes the covenant not to compete to prevent the leak of the trade secrets. Finally, the paper presents some feasible suggestions to perfect our present laws in trade restraint.