'Timely Rain' is crucial for firms doing business in Shanghai

Wan Lixin
In resolving a trade secret leak case, Chinese justice reveals its willingness to protect the legitimate rights and interests of both domestic and international firms.
Wan Lixin

Editor's note:

Shanghai authorities have officially launched the nation's first foreign-related judicial documentary series, "Foreigners Tell Stories: A Rule-of-Law Business Environment." This highly anticipated sequel builds on the success of its first season, which garnered worldwide attention. The second season delves deeper into Shanghai's ambitious "Five Centers" initiative.

'Timely Rain' is crucial for firms doing business in Shanghai

Adrian Hamczyk

Adrian Hamczyk, a Polish engineer, joined Tesla in 2020 as the CAE manager of the manufacturing engineering team at Tesla's Shanghai Gigafactory in the Lingang Special Area of China (Shanghai) Pilot Free Trade Zone.

In 2023, his team encountered an issue involving the potential disclosure of trade secrets. Without authority, a technician retrieved the information in question and subsequently uploaded it to numerous cloud-based public areas, placing the organization at risk of breaches.

The volatile situation compelled Tesla to report the incident to public security officials and file a lawsuit in a local court.

At this point, the Pudong People's Court's Intellectual Property Tribunal stepped in. They accepted the case and granted a preservation ruling within 48 hours.

Then, many judges rushed to Beijing, effectively shutting down cloud storage accounts that could potentially cause leaks.

In handling this matter, the court not only exhibited timeliness and skill but also impressed Hamczyk with the Chinese justice's determination and attention to preserving the legal rights and interests of domestic and foreign businesses.

The Pudong court has made a commitment to public legal education in order to effectively alleviate bottlenecks in commercial secret protection.

Tao Ye, the deputy presiding judge of the Pudong court's Intellectual Property Tribunal, gave a detailed explanation of the importance of trade secret protection and relevant legal provisions at a lecture at the Lingang Special Area Legal Service Center, where Hamczyk and other corporate representatives were present.

"In Chinese, there is a phrase 'timely rain' (which means timely support). I feel that, whether for our company or other businesses, the court's assistance is like a timely rain, providing us with strong trade secret protection," said Hamczyk.

Tesla's growth at Lingang is in full swing, with the official start of production at its Megafactory, the automaker's first energy storage facility outside the United States.

"We have complete confidence in the future because we are protected by the judiciary. We will continue to work hard to build the city, making steady progress toward a better future together," Hamczyk stated.


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