Galanz sued Xinbao and Dongling Weili infringed their magnetron trade secrets

On November 25, jdxfw.com learned from the "Seminar on Judicial Protection of Trade Secrets under the New Situation" that Guangdong Galanz Microwave Electric Appliance Manufacturing Co., Ltd. sued Guangdong Xinbao Electric Co., Ltd., Zhongshan Shandong Lingweili Electric Co., Ltd., and Zhongshan Meige Electronic Technology Co., Ltd. suspected of illegally obtaining and using Galanz magnetron product trade secrets. Galanz said that after twenty years of hard work, the company has invested more than one billion yuan in capital, has independently developed multiple generations of magnetron products, and developed a complete set of magnetron products and their spare parts production, processing and assembly; core technologies such as equipment, tooling and fixtures, technological processes, and microwave leakage safety protection. "The magnetron's independent core technology and its support, as well as the business information of specific suppliers cultivated are the core competitiveness of Galanz Microwave Oven Company." Galanz said.

However, Galanz later discovered that during his tenure at Galanz Microwave Oven Company in 2016, "Meige Company" Liu Yinbo had sent confidential cost and technical information related to Galanz to "Dongling Weili" by e-mail, and at the same time accepted "Dongling Weili" employment contract, and was hired as the technical person in charge of “Dongling Weili”. In January 2017, after Liu Yinbo resigned from Galanz, he established "Meige Company" which is 100% controlled by Dongling Weili, and began mass production of magnetron products using Galanz trade secrets, and all of them were supplied to Dongling Weili. The registered trademark of "Xinbao shares" and the English company name are printed on the magnetron products. "Dongling Power" uses a significant number of magnetron products accused of infringement in the production of its microwave oven products, reducing the production cost of its microwave oven products to engage in vicious competition in the global market. Galanz stated that, based on preliminary estimates, the scale of infringements by "Xinbao", "Dongling Weili" and related companies exceeded 100 million yuan. "Xinbao shares" also uses Galanz's trade secret magnetron products and produces microwave oven products. A few days ago, Galanz filed a civil lawsuit with the Guangzhou Intellectual Property Court, requesting Xinbao, Dongling Weili, Meige and Meige’s legal representative Liu Yinbo to stop the infringement and compensate for the losses. At present, the civil lawsuit has been approved by the Guangzhou Intellectual Property Court.

Tianyan found that Xinbao and Dongling Weili were both affiliated companies of Guangdong Dongling Kaiqin Group, and the legal representative was Guo Jiangang; the defendant three "Meige Company" was a 100% holding subsidiary of Dongling Weili.

It is also understood that, due to the extremely high economic and commercial value of the infringed trade secrets, Galanz Microwave Oven Company reported to the local public security agency in July this year, and the case was filed on July 24. In the process of handling the case, in addition to the seizure of dozens of finished magnetrons and some parts and components, other products, equipment, and property involved have not been detained or seized.

Professor Li Shunde, Vice President of the Intellectual Property Research Society of the Chinese Law Society pointed out at the seminar that the protection of intellectual property, especially the protection of trade secrets, can effectively promote innovation, accelerate the upgrading of industries, and improve the development of enterprises. It plays a positive role in the country's entire socialist construction and the healthy development of innovative strategies.

Professor Huang Wushuang, deputy secretary of the Party Committee and Dean of the School of Intellectual Property of East China University of Political Science and Law, pointed out that competitors who illegally obtain trade secrets from others under the guise of the talent flow mechanism must obtain relief through trade secret infringement litigation and criminal cases to combat those who steal trade secrets.