Research On The Punitive Compensation System Of Commercial Secrets In China

Trade secret,an intangible asset of modern enterprises,can create potential or actual economic benefits for enterprises and make them more competitive.Recently,the trade-secret torts have occurred occasionally,as our country’s economy develops rapidly,so it is necessary to strengthen the legal protection.The Law of the People’s Republic of China Against Unfair Competition launched in 2019 made comprehensive provisions on the punitive compensation system for trade secrets.The punitive damages system of trade secret not only has the function of punishment,deterrence and prevention,but also has certain compensation function,which plays an important role in cracking down on malicious infringement,effectively protecting the competitive advantage related to trade secrets,maintaining the market competition order and promoting social innovation.Although this legislation has clear provisions for the punitive damages of trade secrets,some defects existing in the law still cause some difficulties in the judicial practice of our country,because of the development of market economy and some special cases are numerous and complicated.For example,in the case of trade secret infringement,the concrete application of"malicious infringement" and "serious circumstances" needs to be further discussed.The calculation method of compensation amount is mainly determined by the actual loss and income obtained by the obliged,but currently the calculation method and specific consideration are in dispute,and there is no clear regulation on the liability of proof of punitive damages for trade secret.This paper discusses relevant issues about damage compensation of trade-secret torts.Combining the relevant foreign legislation and judicial practice with China’s national conditions and the positive operation of the market,and using the methods of literature research,induction and synthesis,comparative analysis and case analysis,the author puts forward some suggestions on how to perfect the system of punitive damages for trade secret with the basic theories of trade secrets and punitive damages:clarifying the subjective elements of "intention" and the consideration factors of "serious circumstances";determining the calculation method of compensation;breaking the original order of calculation;improving the evidence system of punitive damages.