Public Interests Limitation In Business Secrets Protection

Auto parts manufacturing as the foundation of the automotive industry, relate tohealth, sustainable development of auto industry and life quality of general socialpublic. However the excessive high price of after-sale auto parts in the after-salemarket and car maker’s limitation on the Original Parts supply and free competition,with its suspected abusing dominant position, are becoming subject of publicconcern and criticism, also antitrust enforcement is currently sweeping over thewhole auto industry. This article analyze the main cause of above-mentionedproblems, that is the car maker restrict the Auto Parts Supplier selling the OriginalParts in the independently after-sale market through the means of TechnicalSpecification as Business Secret, which limit the free competition on the OriginalParts between Auto Part Supplier and car maker, therefore result in unreasonablehigh price of Original Parts in the after-sale market, to which the current antitrustenforcement has not yet referred, neither it can provide sufficient legal ground.Based on such theory as Business Secret and its construction elements, thisarticle analyze and confirm that Technical Specification of auto parts constituteBusiness Secret and its protection scope. and from the angle of Business Secrets, itself embodying the balancing of Public Interests, under the Unfair CompetitionLaw, this article summarize the general law and regulations relating to PublicInterests, or relevant provision of mandatory disclosure of Business Secrets issuedby government authorities. By referring to block exemption regulations and its”Liberalisation” scheme in the after-sale market across European Union, and thePublic Interests of the Business Secrets provided in the legislative regulations andrecognized in the judicial cases in Anglo-American and other relevant countries,analyze that the limitation imposed by car maker on exclusive supply of the OriginalParts based on Business Secret, does not balance the Public Interests of othercompetitor, consumer and the whole society, restricting the free competition,therefore fail to conform to aim and purpose of Business Secret protection, andviolate the principle of Public Interests of Business Secrets.Safeguarding the code of ethics in business, encouraging the technologycreation and innovation, and thus facilitating free and fair competition and socialwelfare, are the purposes inherent with Business Secrets which should not beignored, and also the essence of justice and moral basis. Regarding theagainst-competition activities while exercising the right over Business Secrets,considering the nature of weak protection for Business Secrets and limitation on theBusiness Secrets by other people’s legal rights, there will be no sufficient legalground to charge such activities by asserting Car Maker’s abusing Business Secretsconstitute antitrust. Especially in the specific auto parts industry, the interests ofBusiness Secrets holder was already realized in the firstly auto parts market, shallnot extend to the secondly after sale market. under such situation, imposingmandatory disclosure of the Technical Specification upon car marker based on thePublic Interests in the Business Secrets is the crucial point of solving the problems,to ensure free competition and right of free choice by consumer.According to above analyzing and reasoning, to resolve similar problems in theAuto and other related industry, The car maker shall be required to mandatorydisclosure of Technical Specification based on Public Interests. Since there is noindependent provisions for Public Interests relating to Business Secrets which is protected currently under Chinese Unfair Competition law, this article propose, byreferring to law and regulations and case law regarding Public Interests relating toBusiness Secrets protection, to sort out the scope and essence, mean the judgmentstandards of Public Interests, and make specific provisions relating to mandatorydisclosure or license of Business Secrets and the rule of application to protect PublicInterests in the Business Secrets legislation.