Brief Introduction

Lu Zhunkan, founder and legal representative of Shanghai Luanshandian Network Technology Co Ltd, and Lu Bin, a programmer at the company, were punished for infringing commercial secrets.

Lu Zhunkan previously worked at Shanghai Seven and Six Information Technology Co Ltd and had signed a confidentiality agreement with the company. Nonetheless, he broke that agreement and developed a new online game by using the front-end code of a game developed by his former employers. Programmer Lu Bin, while being aware that Lu Zhunkan had infringed commercial secrets, elected to help him using the front-end code in the new game.

Statistics showed that Luanshandian Network Technology Co Ltd profited by more than 1.4 million yuan ($216,712) illegally by issuing the new game on different platforms.

Based on their actions, the Hongkou Branch of the Shanghai Public Security Bureau transferred the case for prosecution to the People's Procuratorate of the Hongkou district of Shanghai. It confirmed the crime and initiated a public prosecution in People's Court of Yangpu district in Shanghai.

The court delivered a guilty verdict and sentenced Lu Zhunkan to jail for one year and nine months and fined him 1.4 million yuan. Lu Bin was sentenced in jail for one year and three months and was fined 20,000 yuan.

Professional Comments

Commercial secrets are a major component of intellectual property and the case demonstrated the close cooperation between public security organs and the application of IP principles. Additionally, the case has provided a warning to violators and guidance for similar cases.