The former deputy general manager of Jiangxi Huadian Electrical Power Co Ltd was recently sentenced to five years in prison and fined 100,000 yuan ($15,696) by a court in the city of Xinyu for breach of a confidentiality agreement.
The defendant surnamed Chen was in charge of production of Huadian's power generators and signed a confidentiality agreement pledging to not reveal the company's technical secrets while he was employed and after he resigned.
Yet after he quit his job at Huadian and joined Colossus Group in Liaoning province in 2008, he was in charge of production and sale of the same type of power generators, competing with his ex-employer at lower prices.
The court found that he used the Jiangxi company's know-how to apply for a patent on the technology and caused more than 7 million yuan in damage to Huadian.
(Source: Gmw.cn)