Taizhou strengthens trade secret protection for shipbuilders

Taizhou is stepping up efforts to protect commercial secrets in its shipbuilding industry after leading shipbuilders reported growing losses of key technical personnel and increasing risks of trade secret leaks.

Since the beginning of the year, several of the city's major shipbuilding companies have jointly called for stronger protection, citing the frequent recruitment of core employees by competitors from other regions.

The loss of experienced technical staff has, in some cases, been accompanied by the leakage of proprietary technologies, resulting in significant business losses.

The industry's long research and development cycles, high employee mobility and easily reproducible technical drawings make it particularly vulnerable to intellectual property risks.

China State Shipbuilding Corporation Chengxi Shipyard experienced the problem firsthand. During the development of its latest-generation LNG containment system last year, nearly one-third of its R&D team was recruited by a shipbuilder in another region.

According to Wu Peng, the company's intellectual property manager, pursuing legal action proved difficult because collecting evidence and completing technical assessments can take considerable time.

To address these challenges, the Taizhou market regulator recently held a seminar for high-tech shipbuilding and offshore equipment manufacturers, offering practical guidance.

The guidance covers key areas including identifying and classifying confidential information, managing employees with access to sensitive technologies, drafting confidentiality agreements, and establishing emergency response procedures.

By providing companies with practical compliance tools and preventive measures, Taizhou aims to help safeguard innovation, strengthen the competitiveness of its shipbuilding industry, and foster a more secure environment for high-end manufacturing.