Managing Trade Secret Legal Risks for Food Company in China

Abstract

Different from other intellectual property rights, such as patent right or trademark or copyright, trade secret is the basic right that every company should own. But they seldom take the protection of trade secret as the basic work, and it leads to many kinds of legal risks. Many companies were caused difficulties or even bankruptcy because of these legal risks. It has been a popular difficulty work to avoid these legal risks effectively inside China. One of the most important reasons for this phenomenon is the lack of basic trade secret legal risk management awareness. There are two key variables in trade secret legal risk: risk and return. Companies are profit-driven, and the higher the risk, the greater the gain; certainly, the damage would be more serious when risks occurred. Many trade secret legal risks would be avoided if company is able to pay attention to the investment of trade secret legal risk management funds in the daily financial expenditure. Otherwise, the lack of the financial support will lead to the high risks of leaks. Trade secrets protection in the food company need specialized departments, specialized staffing, specialized education, isolation area development, secrecy, implementation, and the perfect protection system. The author believes that the protection system and relevant measures on trade secret for food company can also provide useful references for other commercial organizations.