What is the difference between trade secret protection and non-compete?

Under what circumstances do parties have the obligation to keep trade secrets to the obligee? The obligation to keep trade secrets confidential is often due to the existence of a contract between the two parties. my country's labor law stipulates that the parties to a labor contract can agree on matters related to keeping the employer's secrets during labor. What is the relationship between trade secret protection and non-compete? Please follow the editor of Legal Savior Network to learn more below.

What is the difference between trade secret protection and non-competition

The non-competition system in the Labor Law, It is a useful supplement to the trade secret protection system in the Anti-Unfair Competition Law. The two have something in common, that is, they are both designed to protect the employer’s trade secrets. But there are also differences:

First, competition The industrial prohibition system can effectively prevent employees from engaging in competitive activities and inadvertently infringing on trade secrets, but the trade secret protection system in the Anti-Unfair Competition Law is difficult to effectively solve this problem.

Second, if workers violate the non-compete agreement, they cannot be investigated and punished through administrative law enforcement means. However, if workers clearly violate the law and infringe on trade secrets, they can be investigated and punished through administrative law enforcement according to the Anti-Unfair Competition Law. Third, if an employee violates the non-compete agreement, the employer can only safeguard its rights and interests through labor dispute resolution, that is, arbitration first and then litigation; and if the employee obviously violates the employer's requirement to keep business secrets and infringes on business secrets, the employer shall The unit can only seek compensation through civil litigation.

The non-competition system in the "Labor Law" serves as a useful supplement to the trade secret protection system in the "Anti-Unfair Competition Law", indicating that the non-competition agreement should be to protect trade secrets As a premise. If the employee does not possess business secrets, the employer shall not require the employee to enter into a non-compete agreement, thereby preventing the employer from "hiding" or "blocking" certain key talents through the non-competition system, which is beneficial to Maintain the vitality of the labor market to the greatest extent and maximize the social value of talents.

The non-competition system in the "Labor Law" is a useful supplement to the trade secret protection system in the "Anti-Unfair Competition Law". It also shows that employers cannot rely solely on the non-competition system. It is important to properly safeguard the rights and interests of one's own trade secrets. This is because even if an employee abides by the non-competition agreement, he or she may infringe upon the employer's trade secrets by disclosing or allowing others to use the trade secrets in his possession with or without compensation.

Therefore, when an employer protects its business secrets, it should The non-competition system in the "Labor Law" is combined with the trade secret protection system in the "Anti-Unfair Competition Law". On the one hand, it agrees with workers to keep trade secrets or requires workers to keep trade secrets; on the other hand, it makes agreements with workers to keep trade secrets. Sign a non-compete agreement.

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