Covenants Not To Compete In The Protection Of Trade Secrets

In a competitive market environment, if it wants to occupy a place in the market, an enterprise must posses some pracrical business secrets such as technical information and management informatin, which should be unknown to the public but can bring economic profits to the enterprise.lt is out of the consideration of keeping the business secrets that many information concentrated enterprises and agencies have passed regulations and stipulations of trade restraint to forbid their staff members to compete with their own enterprises by means of agreements or internal regulations. However, dissension resulting from these regulations and stipulations has appeared and tends to spread. A case in point is thejob-hopping of &4H1& in the United States. Another good example is the China Youth Travel Service charging China Travel Service with the violation of business secrets secrets by making use of the customers' files taken away by its former staff member.The article sets out with the protection of business secrects,stating that the transferring of talented people is the main channel for the giving away of the business secrets.Thus it advances the necessity to build a trade restraint system in competitive industries. The article also discusses the trade restraint system. Meanwhile, it discusses the system from the staff member's incumbency period and his dimission period respectively. Finally, the article investigates into the legal status of the covenants not to compete and the validity of verdict criteria, thusadvancing to protect the bus iness secrets andmaintain fair competitiol with the trade restraintsystem.