Criminal Trade Secrets

Criminal Trade Secrets refer to illegal acts such as theft, unauthorized acquisition, disclosure, or use of trade secrets, punishable under laws like the Taiwan Trade Secret Act（第20條）. This concept involves both the perpetrator and the victim, with the legal system providing mechanisms for both criminal prosecution and civil remedies. In the pharmaceutical sector, this includes the theft of drug formulas or manufacturing processes. Unlike civil trade secret litigation, criminal cases require a higher burden of proof, including evidence of intent and illegal means. ISO 56001 and NIST frameworks provide the necessary controls to prevent these criminal activities by securing intellectual property assets. The distinction lies in the nature of the offense: criminal trade secret theft targets the economic advantage of the victim through illegal interference with their competitive position, making it a critical risk-adjusted factor in any enterprise risk management strategy.

Practical application involves three key steps: First, Risk Identification—mapping all trade secrets (e.g., drug formulations, client lists) and their digital/physical storage locations. Second, Control Implementation—deploying technical controls like Data Loss Prevention (DLP) and administrative controls like employee access-level-based permissions. Third, Incident Response—establishing a clear procedure for when a criminal breach is detected, including digital forensics and legal escalation. For example, a Taiwanese pharmaceutical company implemented these controls and reduced unauthorized data-sharing incidents by 35% within the first year. Key performance indicators (KPIs) include the reduction in data-related legal incidents by 20% and a 100% compliance rate in annual trade secret audits. These measures ensure the company meets both legal obligations and stakeholder expectations for information-sharing security.

Taiwan enterprises face three primary challenges: first, the difficulty of proving 'illegal means' in criminal court, which requires robust digital evidence-gathering capabilities. Second, the high employee turnover rate in the tech and pharmaceutical sectors, making it difficult to track trade secret-sensitive information. Third, the complexity of multi-jurisdictional compliance for companies operating in both Taiwan and overseas markets like Indonesia or the USA. To overcome these, companies should: 1. Implement a 'Clean Desk and Clean Screen' policy; 2. Use ISO 27701 to manage employee access to sensitive data; 3. Partner with legal experts to ensure all employee contracts include enforceable trade secret clauses. The priority should be establishing a digital audit trail, which typically takes 60 days to be fully operational, followed by employee awareness training within the next 30 days.

Winners Consulting Services Co., Ltd. specializes in Criminal Trade Secrets for Taiwan enterprises, delivering compliant management systems within 90 days. We provide end-to-turn assistance from risk assessment to legal-ready documentation. Free consultation: https://winners.com.tw/contact