Non-Competition? Unfair Competition?
Company A and Mr. Yu had made a non-disclosure agreement, in which stipulated a non-competition clause. After resigned, Yu joined Company B, a competitor of A. A deemed that Yu had violated the non-competition clause, and disclosed its trade secret to B, which helped B to enhance its competitive advantage. Thus, A brought a lawsuit against Yu on unfair competition, due to Yu’s breach of non-competition clause. However, the court dismissed A’s claim. Why did the court dismiss A’s claim? In this case, Yu’s two actions belong to two different legal relations. Yu has breached the non-competition clause by joined…