Kaizhong, Hu --- "Unfair Competition/Trade Secrets (1)" [2011] ELECD 842; in Kariyawasam, Rohan (ed), "Chinese Intellectual Property and Technology Laws" (Edward Elgar Publishing, 2011)

Book Title: Chinese Intellectual Property and Technology Laws

Editor(s): Kariyawasam, Rohan

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849800082

Section: Chapter 5

Section Title: Unfair Competition/Trade Secrets (1)

Author(s): Kaizhong, Hu

Number of pages: 21

Extract:

5. Unfair competition/trade secrets (1)
Hu Kaizhong1

The market economy as a competitive economy suggests that competition
should be based on impartiality and honesty. However, some business
operators of corporate concerns often infringe fair competition princi-
ples and try to use various kinds of unfair methods to damage others'
legal rights and interests. Therefore, many countries around the world
have brought into effect Anti-Unfair Competition Laws to deal with
such methods. In recent years, a series of acts of unfair competition have
emerged in the field of intellectual property in China, which has caused
damage to consumers' welfare and business operators, and other under-
takings competing in the same markets. As a consequence, China has
felt an urgent need to amend current laws to protect the normal order of
competition.


5.1. ACTS OF UNFAIR COMPETITION

The market economy is based on competition built on the relationship
between commodity supply and demand, which in essence is an economy
with free competition. The role of free competition can only be fully
played in a `perfect competition' market.2 However, not all competition
in daily life is the result of perfect competition. In practice, the realistic


1 Professor of Law, Zhongnan University of Economics and Law.
2 So-called perfect competition exists only in markets where (1) there are
many small firms and consumers, and all the sellers are decision-makers on price;
(2) all firms aim to maximize profits while all customers aim to maximize effective-
ness; (3) all ...