1. Restricted © Siemens AG 2013. All rights reserved Trade Secret Qu Xiaoyang, Director of Intellectual Property | Dec. 4. 2013

2. Page 2 December 2013Restricted © Siemens AG 2013. All rights reserved Trade Secret Trade secret protection A challenge for companies in China

3. Page 3 December 2013Restricted © Siemens AG 2013. All rights reserved Legal Frame Work Civil law Labor law Anti-unfair competition law (1993) Criminal law SAIC Administration regulation

4. Page 4 December 2013Restricted © Siemens AG 2013. All rights reserved Approach of Trade Secret Enforcement Civil procedureCriminal procedure ( Preferred by local company )

5. Page 5 December 2013Restricted © Siemens AG 2013. All rights reserved Chinese Sustainable Growth Requires 20% Annual turnover rate in China Leading local company prefers criminal prosecuting MNC has concerns when transferring cutting-edge technology to China Enterprises has no motivation to develop their own trade secret

6. Page 6 December 2013Restricted © Siemens AG 2013. All rights reserved Two cases District court ruled that the employer had violated the freedom of correspondence of the employees by monitoring their e-mail send off. The employee was charged of downloading sensitive files without authorization and send it to 3 rd party, using company PC and company IT network, but through private mail box. Court ruled that the IT monitor / recorded system is under full control of the employer. Therefore the record of unauthorized downloading was not sufficient to charge the former employee.

7. Page 7 December 2013Restricted © Siemens AG 2013. All rights reserved Demand for a modern trade secret protection system Apply to employee, besides business operator Defendant’s burden of proof Court order for evidence preservation Consequential offense replaced by Offense of act

8. Page 8 December 2013Restricted © Siemens AG 2013. All rights reserved Thank you!