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“Shadow” (“S”) is a mid-sized company, in the past few years, with the improvement of R&D, the added value of S’s products has been increasing and S has made a sizeable profit. However, the KPI system exists in name only, the employees just complete the same tasks as the past, but they can obtain a salary increase at around 5% to 15% year by year, which becomes a convention. In the recent 2 years, the Euro crisis causes the shrinkage of foreign clients’ demand, the R&D cycle trough and failure to develop new products, the effect of RMB appreciation has…

The former employer’s customers are solicited by the employee by utilizing its Customer List ( “CL”) after he/she has made a job-hopping, which is a common occurrence. Some of those former employers have tried to sue the employees for Infringement of Business Secret by the evidence of CL, but the courts seldom support their claims. Article 10 of “Anti-Unfair Competition Law of PRC” (“AC LAW”) has stipulated that the business secret (“BS”) includes technical information and business information (“BI”). In accordance withArticle 2 of “Several Provisions on Prohibiting Infringements upon Business Secrets”, BI mainly includes, management secrets, CL, information about…

A and B know that the famous company ”Shadow” values its reputation very much, so they fabricate dozens of accounts on the BBS of a foreign trade website, “disclose” the negative news about Shadow,and blackmail Shadow into paying “Deleting Fee” through email and phone. The amount of “Deleting Fee” varies from 100Yuanto more than 10,000Yuan.At the beginning, Shadow is afraid that the negative news will bring bad effect upon its corporate image, and mislead customers, so Shadow paid the fee. However, with A and B’ s “appetitie” increasing, Shadow has no choice, but asks the attorney for help. Attorneysuggested that…