The two judicial interpretations clearly define the standard for considering "serious circumstances" when determining the crime of infringement of trade secrets.
The Supreme People's Court and the Supreme People's Procuratorate recently released a judicial interpretation, clarifying the standards for conviction and sentencing of infringement of trade secrets. This interpretation on several issues regarding the application of law in handling criminal cases of intellectual property rights infringement clearly defines the threshold for the crime of infringement of trade secrets as "serious circumstances," which includes causing losses or illegal gains of "more than thirty thousand yuan." If someone who has been criminally punished or administratively penalized for infringing trade secrets within two years commits the offense again, the threshold is lowered to "more than ten thousand yuan." The judicial interpretation specifies that the determination of the amount of losses should differentiate the degree of social harm caused by different behaviors and set different standards accordingly. For obtaining trade secrets through theft or other improper means, which poses a significant social harm, the losses can be determined based on a reasonable license fee for the trade secrets without requiring actual usage. Regarding the determination of illegal gains, the judicial interpretation stipulates that the value of property or other benefits obtained through disclosure or allowing others to use trade secrets can be directly considered as illegal gains. The profits obtained from the use of trade secrets can also be considered as illegal gains, with these profits being determined based on the sales volume of infringing products multiplied by the reasonable profit margin per item.
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