Research On Punitive Damages For Trade Secret Infringement

Since the amendment of the Anti-Unfair Competition Law on April 23,2019,China has formally established a punitive damages system for trade secret infringement.Its role is not only limited to recharge the losses of the victim,but also to punish the intentional tortfeasor and curb the future may appear similar behavior.However,due to the short implementation time of the punitive damages system for trade secret infringement,the relevant cases are few,and there is no systematic research on its implementation effect.In addition,the application of the punitive damages system in intellectual property rights has not yet been resolved,so this paper hopes that the study can improve the application of the punitive damages system for trade secret infringement,combined with practical issues to enhance the theoretical basis.Through the study,this paper intends to clarify the general framework of punitive damages for trade secrets on the basis of the characteristics of trade secrets,including the origin,application,function,principles and elements of punitive damages.This paper then analyzes the dilemma of punitive damages for trade secret tort to propose a perfect way.The empirical analysis shows that the punitive damages system in China’s trade secret infringement litigation is less applicable and application of non-standardized issues,and did not play its expected role of punishment.prevention.Punitive damages for trade secret tort mainly has the following problems:(1)Imperfect procedural safeguards,including the initiation of procedures,proof standards and proof of responsibility are not clear.(2)The entity conditions are not clear,mainly in the "malice" and "seriousness" of the understanding.(3)It is difficult to determine the amount of compensation.i.e..it is difficult to determine the compensation base and the rules for determining the compensation coefficient are not uniform.(4)The tendency of generalization of statutory compensation and confusion with punitive compensation.This paper will conduct extraterritorial research in a targeted manner,and draw on the experience of relevant countries for the analysis of the applicable conditions,amount calculation and measurement factors of punitive damages for trade secrets.In order to regulate the application of punitive damages and give full play to its functional role,this paper suggests that the following five aspects can improve the system construction of punitive damages for trade secret infringement:First,about the application of the procedural guarantee mechanism,including balance the standard and burden of proof,break the order of application of the base compensation.Second.it is to regulate the application of punitive damages.refining the "malice" and "seriousness of the circumstances" identification criteria while clarifying the relationship between the two.Third,the calculation of punitive damages should be precise,and there should be authoritative calculation methods for both the base and coefficient of compensation.Fourth,rationalize the relationship between statutory compensation and punitive damages,build Chinese trade secret tort damage compensation system.Fifth,based on local practice while taking into account the international development,including the promotion of China’s trade secrets special legislation,improve the supervision mechanism and supporting mechanism.This paper mainly summarizes through literature analysis,data and case study methods,while interspersed with the introduction of overseas experience for comparative study.In the background of China attaches great importance to the protection of intellectual property rights,especially trade secrets,the research on punitive damages of intellectual property rights will be sustained for a certain period of time.However,the direction of research should be to construct operable rule design and institutional arrangement in conjunction with practice,which is also the significance of this paper.