Reasonable Assessment of Technical Contribution in Trade-secret Cases
An analysis of the Supreme People's Court's 2025 trade-secret decision and the proper assessment of technical contribution when calculating damages.
The decision awarded RMB 381.63 million in damages and expenses in a dispute involving CNC-machine trade secrets. It raised debate over a 100% technical-contribution inference.
Technical contribution concerns the economic share of value attributable to the protected technology, distinct from a simple count of technical elements. Product value may also reflect public technology, brand, channels, capital, marketing and labour.
The article argues for evidence-based, layered assessment; expert assistance where appropriate; transparent reasoning; and strict exceptional conditions for a 100% inference so that strong protection remains compatible with precise calculation.