Research On The Application Of Punitive Damages System For The Protection Of Trade Secrets In China

In the current information era,trade secrets have gradually become one of the most valuable assets of enterprises,and countries around the world have increasingly attached importance to the protection of trade secrets.The application of punitive damages is a very important measure in the protection of trade secrets.China has also made specific provisions on the application of the punitive damages system in the protection of trade secrets.However,from the perspective of judicial practice,due to the difficulties in calculating the amount of compensation and inadequate legal provisions,the application of the system in the protection of trade secrets is not ideal,and the application rate is extremely low.The author believes that the application of China’s punitive damages system in the protection of trade secrets can help promote the high-quality development of China’s economy.Therefore,it is necessary to solve the problems that arise during the application process to promote the implementation of this system.This article will study the current legislative and judicial situation in China,thereby proposing the difficulties in applying this system to the protection of trade secrets in China.At the same time,through comparative research,the author proposes his own improvement suggestions on how to better apply this system,hoping to promote the more effective operation of this system,thereby effectively protecting the legitimate rights of trade secret holders,and maintaining a fair competition order in the market.Specifically,this article will study and explore the application of punitive damages in the protection of trade secrets from the following aspects.In addition to the introduction and conclusion,this article is divided into four chapters:Firstly,the first chapter of this article provides an overview of the application of punitive damages in the protection of trade secrets.Firstly,it introduces the meaning,characteristics,advantages,and historical development of the punitive damages system in China;Then it analyzes the application of punitive damages in trade secret protection from two aspects:the origin and development of trade secret protection and the theoretical basis for applying punitive damages.This chapter introduces the punitive damages system and the relevant theories of trade secrets,thereby providing necessary theoretical support for the subsequent research of the article.Secondly,the second chapter of this article focuses on the application of punitive damages in the protection of trade secrets in China.The first section introduces the current situation of application in China from both legislative and judicial perspectives.The author first sorts out the existing laws and regulations in China,and then conducts a key investigation and research on the relevant cases of various intermediate people’s courts nationwide in 2022;In the second section,based on the above research,the author summarizes three difficulties in the application of punitive compensation system in China’s trade secret protection:incomplete supporting guarantee system,general provisions on applicable requirements,difficulty in calculating compensation amount,and easy abuse of statutory compensation.Once again,the third chapter of this article conducts a comparative study on the application of punitive damages in the protection of trade secrets.The first section introduces relevant extraterritorial situations from two aspects:the Anglo American legal system and the continental legal system,with a focus on examining and analyzing the institutional provisions and judicial application of relevant countries such as the United States;The second section compares and introduces the application of punitive damages system in various intellectual property laws in China in the form of charts.Finally,based on the analysis of the problems that exist in the specific application process of the punitive damages system,and combined with relevant foreign experience,the fourth chapter of this article proposes four suggestions for improvement in response to the application difficulties summarized above:firstly,we should improve the protection mechanism,improve the rules of proof and confidentiality system,and establish a constraint mechanism for the punitive damages system;Secondly,it is necessary to improve the provisions on the applicable requirements and refine the determination of "malicious infringement" and "serious circumstances"Thirdly,improve the calculation method of compensation amount;The fourth is to propose the construction of a comprehensive protection system for trade secrets from two aspects:the independent law on trade secrets and the establishment of a prior relief system.The author hopes to solve the problems that cannot be avoided and solved by current laws and regulations through more perfect legislative provisions,so as to ensure the more effective operation of this system and effectively safeguard the legitimate rights of the obligee.