The Supreme People's Procuratorate ("SPP") and the Ministry of Public Security ("MPS") have recently drafted the Supplementary Provisions on Revising the Standards for the Filing and Prosecution of Trade Secret Infringement Cases in the Provisions (II) of the Supreme People's Procuratorate and the Ministry of Public Security on the Standards for the Filing and Prosecution of Criminal Cases under the Jurisdiction of Public Security Authorities (Draft for Comment) (the "Draft for Comment") to solicit public comments by August 23, 2020.
Circumstances under which the trade secret infringement cases shall be filed and prosecuted are revised in the Draft for Comment as below: 1. the amount of losses caused to the trade secret holder is over CNY500,000; 2. the amount of illegal gains from the trade secret infringement is over CNY500,000; 3. The infringer directly causes the trade secret holder to go bankrupt or shut down due to any major business difficulty; or 4. other circumstances under which heavy losses are caused to the trade secret holder. The Draft for Comment also specifies five methods of identifying the amount of the aforesaid losses or illegal gains, and the methods of determining losses of sales profits caused to the right holder due to the infringement.