Photo source: Rongta Technology
Rongta Technology is facing a 200 million RMB trade secret lawsuit from its rival, Pinnacle Technology, according to a statement released by Rongta last month.
The lawsuit, filed with the Xiamen Intermediate People's Court, accuses Rongta and one of its former employees, Mr. A, of misappropriating Pinnacle's trade secrets.
Pinnacle is seeking a court order to halt Rongta's actions infringing on its trade secrets, as well as to stop the development, production, and sale of the accused infringing weighing products.
In addition, Pinnacle demands compensation for the infringement and related litigation costs, with claims totaling approximately 200 million RMB.
At the heart of the dispute is Mr. A, a former employee of Rongta. In August 2020, Mr. A was arrested by Xiamen Public Security Bureau for allegedly stealing trade secrets. A year later, Pinnacle filed a criminal lawsuit at the People's Court of Siming District in Xiamen, with a civil claim attached, against Mr. A and Rongta, accusing them of trade secret infringement.
Pinnacle alleged that Mr. A misappropriated its trade secrets and used the disputed software in four of Rongta's weighing products, which were launched around September 2015. Pinnacle also claimed that Rongta knew or should have known about Mr. A's actions.
In August 2022, the People's Court of Siming District in Xiamen ruled in favor of Pinnacle, confirming that Mr. A had infringed on its trade secrets. However, Rongta appealed the decision, and the Xiamen Intermediate People's Court overturned the ruling, remanding the case for a retrial.
In November 2023, the Siming District People's Court rejected all of Pinnacle's claims during the retrial, on the grounds that Pinnacle's claims were not based on infringement of personal rights or loss due to property damage, and therefore should not be brought as a civil lawsuit attached to criminal proceedings. Pinnacle filed an appeal, but in April 2024, the Xiamen Intermediate People's Court upheld the retrial judgment, dismissing the claims.
Now, Pinnacle has escalated the dispute by filing a civil lawsuit against Rongta, reigniting the legal battle.
In response, Rongta firmly denied the accusations. The company emphasized that it was only made aware of Mr. A's actions when he was arrested and that his employment ended in January 2021. Furthermore, the disputed products were discontinued from sale in August 2020.
Rongta views this civil lawsuit as similar in nature to the previous case, in which all of the Pinnacle's claims were dismissed in the past retrial and appeal decisions. The company does not anticipate that this new lawsuit will significantly impact its business, financial status, or operations.
Regarding the 200 million RMB compensation claim, Rongta clarified that this is merely the amount Pinnacle is seeking, and it does not necessarily reflect the amount the court will award or any ruling in Pinnacle's favor. The company has assembled a professional litigation team and is actively defending itself, including challenging the basis for the compensation calculation.
Founded in 2010, Rongta Technology specializes in the development, design, manufacturing, and marketing of automatic data collection devices. The company's products include specialized printers, weighing scales, POS terminals, and PDAs, with a global sales network. Rongta was listed on the Hong Kong Stock Exchange on June 10, 2025.
Pinnacle Technology is a leading global manufacturer of fiscal devices, retail scales, point of sale systems, receipt printers, and other POS peripherals under the ACLAS brand. With a 40,000㎡ self-owned manufacturing plant in Xiamen, China, Pinnacle produces over 1 million commercial devices annually, according to the company's official website.
