Okay, here’sโ a breakdown ofโฃ theโข key details from the provided โขtext, essentially a summaryโฃ of aโข legal โcase regardingโ trade secret infringement. I’ll organize โฃit intoโ sections for clarity:
1. Core of the Case: Trade secretโ Infringement
* Plaintiff: Xi Company (owner โof โthe trade secrets)
* โข Defendants: Shangโ Company, Liuโข Company, and Mu Company (accused infringers)
* infringement: The defendants used Xi Company’s trade secrets to produce and sell โขinfringing โฃproducts. Thisโค was done at “zeroโค R&D โcost” becauseโฃ they didn’t develop the technology themselves.
* โ Evidence & Obstruction: The defendantsโฃ refused to submit financial information, hindering the evidence-gathering process.
2. Court Decisions & Remedies (supremeโค People’s Court Ruling)
* Reversal ofโ First Instance: Theโค Supreme โPeople’s Court overturned theโข initial โjudgment.
* โ Injunctive โขReliefโ (Stopping the โInfringement):
โ * Defendants must promptly cease โขall disclosure,โ use,โค and allowance ofโฃ others to use โขthe trade secrets.
* โ Drawings containing the trade secrets must be destroyed or handed over to xi company under court supervision.
โ* Infringing production equipment must be dismantled under court supervision.
* Key โpersonnel (shareholders,directors,etc.) of the defendantโข companiesโ must sign โคcommitmentโฃ lettersโค promising toโฃ protect the โขtrade secrets and refrain fromโข further infringement.
* โข Monetary Damages:
* shang Company and โLiu Company are jointly and severally liable for 60 millionโข yuan inโข economic lossesโ andโข reasonable expenses to Xi Company. (Meaning Xiโ Company canโค collect the full amountโข from eitherโข one, or a combination of both).
โค * Mu Company is jointly and severally liable for โ20 millionโฃ yuan.
* Enforcement of Non-Monetary obligations: The court clarified thatโ penalties (daily/monthly fees or aโ fixed amount) would be applied for failingโค to comply with โthe injunctionsโค (stopping infringement,โค dismantling equipment, โetc.). This isโข to ensure the defendants actually stop the infringingโฃ activity.
3. Calculation of Damages
* Profit-Based Approach: Damages were calculated based on the defendants’ profits derived from using the trade secrets.
* โ โ Profit Margin: Xi Company’s own profit margins (from 2019-2022) were used โขas a conservative estimate for โthe defendants’ profitโค margins.
* Trade Secret Contribution: โข The contribution of the trade secret to the infringing product’s profitability was determined to be 1/3.
* Total Infringementโค Profit: Calculated atโข 76.207 million yuan.
* Totalโฃ Award: โค The 60โข million yuanโฃ award, plus the 894,189โข yuan in legal expenses, was deemed fully supported by the โคevidence.
4. Post-judgment โขImplementation
* Payment โฃReceived: 61.7735 million yuan (including interest) has been paid by the defendants.
*โค โ Infringing Productionโ Stopped: At least one company has โคceased productionโค of the infringing devices.
In essence, this case demonstrates a strong legal response to trade secret theft,โ including both injunctiveโ relief โto stop the infringement and notable monetary damages toโ compensate the โvictim. The court took steps โฃto ensure theโฃ judgment was enforceable, including clarifying penalties โfor non-compliance.
Is there anything specific aboutโฃ this case you’d like me to elaborate on? Forโ example, are you interestedโ in:
* โ The legal โคconcept of “joint โขand several liability”?
* The significance โคof the court’s clarification โon penalties for non-compliance?
* โ โ the rationale behindโ using Xi Company’s profitโ margins to estimate the defendants’ profits?
* โ A comparison to similar trade secretโข cases?
