ZHEJIANG HISUN BIOMATERIALS CO., LTD. Wins First-Instance Trial in Trade Secret Infringement Case

Zhejiang Hisun Biomaterials Co., Ltd. (Haisheng Biotech) recently announced an update on the latest progress of a criminal incidental civil action it initiated as the plaintiff. According to the first-instance judgment ((2025) Zhe 1002 Xing Chu No. 668) issued by the Jiaojiang District People's Court of Taizhou City, Zhejiang Province, defendants Zheng XX and Qian XX were convicted of the crime of infringing on trade secrets and sentenced to fixed-term imprisonment of three years and six months and one year and six months, respectively, along with fines. Enterprises such as Pumou Bio-tech Co., Ltd. were also ordered to cease their infringing acts and compensate for economic losses.
 
The plaintiffs, Haisheng Biotech and its wholly-owned subsidiary Hainuoer Co., Ltd., alleged that defendant Zheng XX, with the assistance of Qian XX, and together with defendant Ke XX, illegally entered the Hainuoer resin production workshop through abnormal means while wearing work uniforms of Womou Machinery Co., Ltd. Inside the workshop, the three defendants collaborated in a division of labor, using observation, photography, and other methods to steal the plaintiffs' core information, including production equipment, process flows, technical parameters, and specialized additives. These actions directly infringed upon the plaintiffs' technical secrets, resulting in commercial damages. The plaintiffs argued that the six defendants' conduct constituted joint infringement, and thus filed a criminal incidental civil action, demanding that the court hold the defendants criminally liable and award corresponding economic compensation.
 
After trial, the court sentenced Zheng XX to three years and six months of fixed-term imprisonment and a fine of 300,000 RMB; Qian XX to one year and six months of fixed-term imprisonment and a fine of 150,000 RMB. Pumou Bio-tech Co., Ltd. was ordered to compensate the plaintiffs for economic losses amounting to 4,850,000 RMB; Qian XX was personally ordered to pay 150,000 RMB in compensation. The total compensation amount reached 5,000,000 RMB, which covers reasonable expenses incurred in protecting the plaintiffs' rights. The court dismissed the other claims of the incidental civil plaintiffs, Haisheng Biotech and Hainuoer Co., Ltd.
 
The court ordered Zheng XX, Qian XX, and Pumou Bio-tech Co., Ltd. to immediately cease the infringing acts until the trade secrets are publicly disclosed.
 
Currently, the first-instance judgment has resulted in a victory for Zhejiang Hisun Biomaterials Co., Ltd. However, as the case is within the appeal period, the final outcome has not yet been determined. China Intellectual Property Lawyers Network will continue to monitor subsequent developments.