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People · 05 Editorial guide

Trade Secrets and Employee-Created IP in China

Employee IP and trade-secret risk sits across ownership, access, contracts, technical controls and evidence. Separate confidentiality from paid non-compete restrictions, identify service-invention or commissioned-work rules, and preserve a lawful record before an exit or incident becomes a dispute.

First job Identify the protected information, ownership chain, access population and exit or incident stage.

Start here

Decision railasset and secret register → creator and ownership → role-based access → employment and contractor terms → technical controls and training → invention and work capture → role change → exit decision → evidence preservation → incident and remedy route
See routing facts

Start here

Key considerations

The first questions are about urgency, governance and preservation — before collection expands or interviews begin.

  1. What information or IP is at risk?
  2. Who created it and who can access it?
  3. Is this onboarding, active access, exit, or an incident?

Direct answer

What this page decides

Owner
02

Employee confidentiality is a control system, not one clause. Identify each technical or business secret specifically enough to distinguish it from general skill and public information. Record its value, owner, authorised users and the secrecy measures actually protecting it. Separately resolve employee-created inventions, designs, software and other works under the relevant service-invention, authorship, contract and remuneration rules. Grant access by role, log high-risk repositories and update permissions when duties change. Confidentiality and post-employment non-competes are not the same: under the judicial interpretation effective September 1, 2025, a non-compete does not bind a worker who did not know or access protected trade secrets or IP-confidential information, and its scope must be proportionate to what was accessed. At exit or incident, preserve evidence lawfully before altering devices, accounts or logs; revoke access, recover materials, document return or deletion and route labour, civil, administrative or criminal issues separately.

At a glance

Which fact changes the next route

Use the fact that changes ownership or urgency to decide the next move.

Facts that change the next investigation route
QuestionWhy it mattersNext route
What exactly is secret?A label such as customer data or source code may not identify the claimed information or show it was non-public.Describe its boundary, location, owner, value and permitted users without unnecessary disclosure.
Who created and owns the output?Inventions, software, designs, documents and know-how follow different rules.Map contributors, duties, employer resources, commission terms, assignments and remuneration.
Who actually accessed it?Contracts unsupported by permissions, logs and real access history are weak operational evidence.Reconcile role, repository, device, export and download records.
Is a non-compete justified?Current rules connect enforceability and proportionality to protected information actually known or accessed.Limit eligible people, competitors, business scope, geography and duration; plan compensation and release.
Is this an exit or an incident?Routine offboarding and suspected exfiltration require different preservation, interview and escalation steps.Freeze relevant evidence before wiping, reissuing or inspecting devices.

Scope

What this page owns — and what it does not

Covers employee and contractor-created IP, trade-secret governance, access controls, confidentiality, non-competes, exits and incident response.
Does not determine ownership, secrecy, infringement, non-compete enforceability, labour liability or criminal exposure for a particular event.
Personal-information, cybersecurity, data-export, employee-monitoring, state-secret and sector controls may limit collection, access or forensic review.
The 2025 Anti-Unfair Competition Law is effective from October 15, 2025; the labour-disputes interpretation is effective from September 1, 2025.

Practical workflow

Action, evidence, legal gate, output

Practical workflow
ActionDocuments / evidenceLegal gateOutput
Inventory assets and secretsCode, formulas, processes, designs, customer and pricing information, research, negative know-how and plansSeparate protected information from public material and general skillParticularised asset and secret register
Resolve creation and ownershipContributors, job duties, employer resources, invention disclosures, commission terms, repositories and assignmentsApply the correct rule to inventions, designs, software, works and know-howCreator and title matrix
Design access controlsRole matrix, repository permissions, devices, downloads, exports, printing, vendors and privileged accountsGrant least-privilege access and create usable evidenceAccess and control plan
Align contracts and policyEmployment, confidentiality, IP assignment, invention, acceptable-use, monitoring, contractor and non-compete termsMatch obligations to lawful controls and actual roleSigned workforce protection package
Operate and reviewTraining, acknowledgements, access reviews, project moves, exception approvals, invention capture and remunerationUpdate control when people, projects or systems changeOngoing compliance record
Run the exitNotice, access map, device inventory, handover, deletion, return, interview, non-compete and compensation decisionDistinguish ordinary exit from suspected incidentClosed exit file
Preserve and investigateLogs, devices, accounts, communications, downloads, external media, repository history and chronologyUse a lawful, scoped and forensically reliable methodIncident evidence package
Select remedySecret comparison, access and similarity evidence, use or disclosure, new-employer facts, loss, urgency and assetsSeparate labour, contract, unfair-competition, preservation and criminal pathsResponse and remedy plan

Documents

What to gather before the next call

These items help clarify the file; they are not a legal requirement list.

Documents to gather before instructing counsel
ItemWhy neededWho holds itRisk if missing
Particularised secret registerDefines information, owner, value, storage and access populationBusiness owner, R&D, security and legalThe company cannot identify what was allegedly taken
Creator and ownership matrixConnects contributions, duties, resources and contracts to each outputR&D, HR, procurement and IPTitle or inventor disputes emerge after filing or exit
Access-control and log mapShows who could view, change, download or export protected informationIT, security and system ownersPolicy conflicts with broad uncontrolled access
Employment and contractor termsRecords confidentiality, assignment, assistance, return, monitoring and lawful restrictionsHR, procurement and legalGeneric language does not match the asset or person
Non-compete decision fileDocuments eligibility, protected access, proportional scope, compensation and releaseHR and labour counselAn overbroad restriction is ineffective or costly
Exit and forensic custody recordPreserves access revocation, device return, copies, deletion and evidence handlingHR, IT, security and counselEvidence is altered or unlawfully collected

Common failure points

Where files usually break

  1. Calling all company information confidential without identifying the claimed trade secret.

  2. Giving entire teams permanent repository access while relying on a generic clause as the only secrecy measure.

  3. Assuming every employee-created invention, design, software module or document follows the same ownership rule.

  4. Omitting inventor contribution, service-invention and remuneration records until filing or departure creates conflict.

  5. Applying non-competes to staff who never knew or accessed protected secrets or IP-confidential information.

  6. Defining competitors, territory or restricted activity more broadly than actual access and risk justify.

  7. Failing to make required compensation payments or document whether the restriction is activated or released.

  8. Leaving access active after resignation, internal transfer, long leave, vendor termination or project closure.

  9. Wiping or reissuing a device before deciding whether lawful forensic preservation is required.

  10. Conducting an unscoped device or communications search without checking privacy, monitoring, data and labour limits.

  11. Sending allegations before preserving access, copying and use evidence.

  12. Treating labour arbitration, a trade-secret claim and criminal referral as one procedure with one threshold.

FAQ

Narrow follow-ups owned by this page

Is an NDA enough to create a trade secret?

No. A contract supports confidentiality, but the information must meet legal requirements and the holder should show reasonable secrecy measures appropriate to the circumstances.

Can every employee sign a post-employment non-compete?

A signed clause is not the whole analysis. Current rules require protected knowledge or access and proportional scope; eligibility, compensation, duration and local procedure also matter.

Does the employer own all employee software?

Not automatically in every situation. Review the work, duties, employer direction or resources, governing copyright and software rules, contract and contributor facts.

What should happen when an employee resigns?

Classify the exit, preserve evidence if warranted, revoke access, recover devices and materials, document return or deletion, decide any non-compete and retain a defensible record.

Can the company inspect an employee's personal device?

Not merely because business information may be present. Ownership, consent, policy, necessity, proportionality, personal information, data location and forensic method require review.

Decision map

Keep the question bounded.

  1. Map assets and ownershipIdentify the code, know-how, customer information, inventions and works; record creators, duties, employer resources, assignments and any inventor remuneration questions.
  2. Control access and contractsMatch least-privilege access, repositories and logs with confidentiality, IP assignment, acceptable-use and lawful non-compete terms.
  3. Run disciplined exitsRevoke access, recover devices and materials, confirm return or deletion, preserve relevant records and avoid overbroad restrictions.
  4. Respond to suspected takingPreserve devices and logs lawfully, particularise the alleged secret, trace acquisition or use and coordinate employment, data, civil and possible criminal routes.

Quick answers

Need the short version? Start with one narrow question.

These explainers answer one question. They do not replace this topic route or a deep guide.

Curated resources

Open the asset that matches this job.

Helpful to prepare

Facts that make the next conversation clearer.

These items are orientation aids, not a legal requirement list.

Asset and particularised secret registerCreator, employment-duty and ownership chainAccess permissions, logs and confidentiality instrumentsNon-compete scope, compensation and enforceability reviewExit chronology, device return and deletion recordIncident preservation and remedy-routing plan

Evidence file

Preserve the record before the forum is chosen.

This is a preparation prompt, not a finding that any item is admissible or required.

  1. Version-controlled technical and business files identifying the alleged secret and its development history.
  2. Employment duties, invention disclosures, contributor records, contractor scopes, assignments and remuneration records.
  3. Classification labels, policies, training, acknowledgements, physical controls and role-based permissions.
  4. Repository, authentication, download, print, email, cloud, removable-media and privileged-access logs retained under lawful policy.
  5. Role-change approvals, exception records, access recertification and third-party disclosure registers.
  6. Exit notices, access shutdown, device custody, return and deletion confirmations, interviews and compensation payments.
  7. Forensic images, hashes, chain of custody, chronology, new-employer facts and evidence of acquisition, use or disclosure.

Counsel hand-off

What to bring when you instruct

Bring the secret and asset register, ownership and contributor records, employment duties, invention and remuneration policies, contractor terms, confidentiality, assignment and non-compete documents, compensation history, access matrices, repositories and retention settings, training records, device and acceptable-use policies, role changes, exit chronology, device and material returns, preserved logs and forensic images, suspected downloads or disclosures, competitor and new-employer facts, loss and urgency evidence, prior communications and any labour, civil or criminal matter.

Local context

Add the city when the enforcement forum changes.

AIC/SAMR and court practice can differ after the national IP route is identified.

Open city and province guides

Counsel hand-off

Need IP counsel?

This hub organises filing, secrets and enforcement routes. It does not register rights, stop a squatter or bind CNIPA on your facts.

Find IP counsel

Submit an initial enquiry

Need qualified counsel?

Move carefully. Move with a record.

Use the portal to identify counsel for this practice and related China-side issues.