Did Downloading 10,000 Core Files Before Resignation Constitute Trade Secret Infringement Even If Unused?

WISECODE Take

Many business owners mistakenly believe that as long as employees do not leak data upon resignation, it does not constitute trade secret infringement; however, unauthorized acquisition itself crosses the legal line. From a supply chain defense perspective in business strategy, the loss of core assets often occurs at the weakest node. In this case, the Weidu District People's Court of Xuchang City tried a case where purchasing manager Liu downloaded over 10,000 confidential files, including supplier directories and product costs, within one hour on his resignation day in May 2025, strategically exposing the company's cost structure. Although Liu claimed the files were unused and the court ordered a penalty of 20,400 RMB, the real risk for enterprises is the competitive disadvantage once defenses are breached, proving that paper NDAs alone cannot stop intentional unauthorized acquisition. We recommend two actions: first, establish dynamic access monitoring with alerts for abnormal downloads by resigning staff; second, ensure digital footprint retention to provide system logs as evidence in court. Prevention is better than litigation; we recommend consulting on IP-Code's Trade Secret Management System Establishment service to safeguard your invisible assets.