The Trade Secrets Act in Taiwan was first announced and enacted in January 1996. Per the original provisions, only the civil liability was stipulated under this Act, yet no provision was included for the criminal punishment. Therefore, in order to stop and pursuit of such illegal act, it was necessary to cite the provisions under the Criminal Code of the Republic of China or Fair Trade Act. Following the complication of the international commercial activities, an amendment of Trade Secrets Act is needed. In order to strengthen the protection of trade secret in Taiwan and to raise the competitiveness of local industry, the Legislative Yuan passed the bill on January 13, 2013 the revision of Trade Secret Act, and the President promulgated the same revision on January 30, 2013. The most significant change of this amendment is to include the articles of criminal punishment for the violation of this Act. A brief summary of this amendment is as follows:
- Adding the definition of the offense of infringement against a trade secret
- It is stipulated under the Act that any act with the intent of illicit gains or inflicting a loss on the owner of a trade secret under the following circumstances will be deemed as an offense against trade secret:
- Acquiring a trade secret by wrongful means, or using or disclosing a trade secret so acquired;
- Committing an unauthorized reproduction, usage, or disclosure of a trade secret;
- Failing to delete, destroy or disguise a trade secret as the trade secret owner orders; and
- Acquiring, using or disclosing a trade secret by any person knowing the previous circumstances.
- Adding the punishment on the offense of infringement against a trade secret
Any person committing the offense against trade secret prescribed previously shall be sentenced to a maximum of 5 years imprisonment or short-term imprisonment, in addition thereto, a fine between NT$1 million and NT$10 million may be imposed. If the gain obtained by the offender exceeds the maximum fine, such fine may be increased accordingly. Moreover, in case the offense is committed with the intention to use the trade secret in foreign jurisdictions, there is provision with the heavier punishment.
- Adding a provision of vicarious punishment of the person in charge
In case the offense is committed in the course of business, not only the actor but the juristic person or the natural person in charge shall be punished with the fine prescribed in the provision.
- Relevant provisions
In principle, prosecution for the crime may be instituted only upon a complaint unless the offense is with the intention to use the trade secret in foreign jurisdictions. Yet the filing or withdrawal of a complaint against one offender shall not be effective for other co-offenders.
