Former general manager of China Petrochemical Development Corporation sentenced for trade secrets theft

　The former general manager, TSAI Xin-Jin and former senior managers of the Taiwan-based company, China Petrochemical Development Corporation (hereinafter “CPDC”) have been convicted of trade secrets theft and breach of fiduciary trust for illegally reproducing CPDC’s trade secrets, confidential materials, and relevant resources and thus violating the Trade Secrets Act and the Criminal Code of Taiwan.  The Taiwan Miaoli District Court rendered a judgment on February 2, 2024, sentencing all seven defendants involved in this case.  The judgment is appealable.  

　In July 2012, the former general manager of CPDC, TSAI Xi-Jin (“Tsai”) resigned from CPDC along with CHEN Jin-Pei (“Chen”), the then project manager at the general manager’s office.  After his resignation, Tsai took up a new position as the general manager at Oriental Union Chemical Corp. from January 2013 and further acquired Dah Shyang Chemical Corporation (renamed as Core Union Chemical Corporation in July 2014) by buying the company’s shares with CHEN taking up the position as the vice president of finance.  During that time, LIU Yao-Long (“Liu”), who was the then plant manager at CPDC’s Toufen Plant in Miaoli, had maintained close communication with Tsai and Chen through email.  According to the Investigation Bureau’s findings, based on the plan to establish factories in China and Taiwan, Tsai conspired with Chen and Liu to gather CPDC’s trade secrets and proprietary information by taking advantage of Liu’s position for this purpose.  

　This case came to light as a result of Liu’s unclear handover for official duties and computer at the time of his resignation, which evoked CPDC internal audit’s suspicion and then caused CPDC to voluntarily submit relevant information to the prosecutorial authority for investigation.  In December 2016, the prosecutor brought an indictment against and CDPC initiated an incidental civil action seeking compensation from these defendants.  On February 2, 2024, Taiwan Miaoli District Court adjudicated as follows:  Tsai should be sentenced to 1 year and 2 months in prison; Chen should receive a 9-month prison sentence; Liu was found guilty of two offenses and should receive the sentences of 1 year and 14 months in prison, respectively.  For the incidental civil action, Liu should pay CPDC damages in an amount of TWD13.77 million and interest thereof.  (Released 2024.02.04)
/CCS