China Implements 'Commercial Secret Protection Regulations', Algorithms Included for the First Time

Central News Agency, Taipei, June 2. China's 'Commercial Secret Protection Regulations' went into effect yesterday, marking the first time that 'data' and 'algorithms' have been included in the scope of protection. Serious violations may lead to criminal liability. According to reports from media outlets such as CNR and Sing Tao Daily, the regulations promulgated by the State Administration for Market Regulation (SAMR) took effect on the 1st, clarifying the elements and scope of commercial secrets. The scope of protection covers technical information (such as structures, formulas, processes, algorithms, computer programs, etc.) and business information (such as ideas, management, customer information, financial data, etc.). Interim results or experimental data formed during production and business activities are also protected. The regulations list eight types of reasonable confidentiality measures, including signing non-disclosure agreements, personnel management, physical isolation, technical protection, carrier management, equipment control, and resignation management, responding to the practical needs of commercial secret protection in the digital age. For general infringement, in addition to ordering the cessation of illegal acts and confiscating illegal gains, fines of between 100,000 and 1 million RMB will be imposed. In serious cases, fines of between 1 million and 5 million RMB will be imposed, and those suspected of illegal activities will be transferred to judicial authorities for criminal prosecution.