Futian Machinery, located in East China's Anhui province, along with seven individuals, has been found guilty of violating the trade secrets of Zuiko (Shanghai) Corporation, which produces machinery for disposable hygiene products.

A former mechanical design manager at Zuiko, who later joined Futian as a technical advisor, was found to have illegally disclosed technical information obtained from Zuiko to Futian's operators.

It was determined that Futian used nine stolen technical secrets to manufacture and sell products to clients in Jiangsu province, and Hangzhou. Five other technical secrets were applied for patents and disclosed under Futian's name.

Seven suspects were arrested by authorities in February 2021 following a report filed by Zuiko in October 2020.

In March 2022, the Shanghai No 3 Intermediate People's Court convicted Futian of the offense, fining the company 10 million yuan ($1.4 million). The seven individuals received 1-3 year prison terms with suspended sentences and fines ranging from 8 million yuan to 300,000 yuan.

The case is said to highlight the importance of protecting trade secrets and avoiding the use of confidential information.

Furthermore, the ruling is said to serve as a warning to those who obtain trade secrets illegally and emphasizes the severe consequences of such actions.