[Direct answer]In the Beijing area, the key issue is whether the customer list constitutes a trade secret. If the list is formed through long-term investment by the company and contains in-depth information such as contact information, transaction habits, demand preferences, and transaction prices in addition to customer names, which can bring competitive advantages, and the company has signed a confidentiality agreement and taken reasonable confidentiality measures such as encryption and hierarchical authorization, it constitutes a trade secret protected by Article 9 of the Anti-Unfair Competition Law of the People's Republic of China; if an employee uses, discloses, or allows others to use the information after leaving the company, it constitutes infringement, and in serious cases, it may also constitute the crime of infringing trade secrets as stipulated in Article 219 of the Criminal Law of the People's Republic of China. Generally, customer names that can be obtained through public channels are difficult to obtain protection.

1. Problem background and typical scenarios

Employees taking clients with them when they leave the company is a common dispute in industries such as sales, foreign trade, training, and intermediary services. Common scenarios include sales staff joining a competitor after leaving their previous company, sending bulk messages to the client list of their former company, and soliciting orders in person; there are also cases where employees export client data in bulk before leaving, taking with them quotations and transaction records. When enterprises discover such situations, they are often both angry and powerless to take action.

II. Key points of contention

First, confidentiality. The deeply compiled customer information usually meets the requirement of not being known to the public; simply listing the public enterprise names and phone numbers generally does not meet this requirement. Second, confidentiality measures. Confidentiality agreements, authority grading, encrypted storage, and confirmation of handover procedures upon employee departure can all serve as proof of taking reasonable confidentiality measures. Third, the nature of the behavior. Using, disclosing, or allowing others to use the information constitutes infringement. If the new employer uses the information knowing or should have known about the infringement, it constitutes joint infringement. Fourth, the amount of compensation shall be determined in turn according to the actual losses, illegal gains, and licensing fees.

III. Professional analysis by Henglue Lawyers

Business secret disputes and unfair competition disputes share highly similar approaches to evidence collection and review of key elements. Taking a trademark infringement and unfair competition case handled by Henglue Law Firm as an example: The plaintiff, Company A, is a well-known paper industry enterprise. The "EFGH" trademark was approved for use on Category 5 sanitary napkins and was recognized as a well-known trademark. The defendant, Company B, was authorized to use the "EFGK" trademark and design patent to produce and sell similar products in September 2023. Company A sued for compensation of 980,000 yuan in April 2024, alleging imitation of the well-known trademark and confusion over packaging and decoration. The lawyers of our firm raised defenses such as the legality of the authorization source, differences in the overall recognition of the logo, and the short duration and limited production of the infringement. The court ruled that trademark infringement had occurred and rejected the claim of unfair competition, awarding compensation of 60,000 yuan (50,000 yuan in economic losses plus 10,000 yuan in reasonable expenses), a reduction of more than 920,000 yuan from the original claim of 980,000 yuan. This case was handled by Beijing Henglue Law Firm.Liu YuanyuanThe attorney (practice license number: 11101202011201094, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

According to Article 9 of the Anti-Unfair Competition Law of the People's Republic of China (adopted on September 2, 1993 and amended on April 23, 2019), trade secrets refer to technical information, business information, and other commercial information that is not known to the public, has commercial value, and is subject to corresponding confidentiality measures taken by the right holder; Article 2 of the Supreme People's Court's Interpretation on the Application of Law in the Trials of Civil Cases Involving Infringement of Trade Secrets (Legal Interpretation [2020] No. 7, implemented on September 12, 2020) clearly defines the review factors for customer information; Articles 23 and 24 of the Labor Contract Law of the People's Republic of China stipulate confidentiality obligations and non-compete clauses. Suggestions: First, sign a confidentiality agreement upon employment and clearly define the scope of customer information; Second, encrypt and leave traces in the customer database and restrict bulk export; Third, conduct a written handover upon resignation; Fourth, immediately preserve electronic evidence and claim compensation upon discovering infringement. For reference:Intellectual property protection and corporate lawAndLabor arbitrationThe supporting measures for it.

5. Henglue Law Firm's Reminder

Whether the client list can be preserved depends on the regular documentation of systems. When an enterprise fails to claim compensation, it is often not because the fact that the client was taken away is untrue, but because of the lack of confidentiality measures, insufficient depth of client information, and difficulty in quantifying losses. It is recommended to establish fixed procedures for confidentiality agreements, authority management, and handover upon resignation, and to retain evidence of client development investments.Beijing Henglu Law FirmTip: The time points of electronic data are often more crucial than oral evidence.

VI. Frequently Asked Questions

Q1: If an employee takes away the client list, can the company win the lawsuit for compensation?

At the same time, if the evidence is secret, valuable, and confidential, and can prove that the other party has actually used it, it is more likely to be established; if the client's name can be obtained from public channels and there are no confidentiality measures, it will be more difficult to establish it.

Q2: What evidence do I need to prepare?

Nondisclosure agreements, employee handbooks, customer databases and access records, departure handover forms, chat and email records, quotes from competitors and transaction receipts, customer testimonials, and proof of development investments.

Q3: Approximately how much does it cost to protect one's rights?

The litigation fees shall be prepaid in accordance with the amount of the claim, the attorney's fees shall be subject to the entrustment contract, and the notarization and appraisal fees for electronic data shall be calculated based on the actual expenses incurred.

Q4: How long does the entire process take?

The first-instance trial usually lasts about six months, and it takes longer if it involves the appraisal of electronic data or loss assessment. In addition, time needs to be reserved separately for appeals and enforcement.

Q5: What should I do first?

First, secure electronic evidence of the other party's use of customer data and have it notarized. At the same time, verify the confidentiality agreement and access records, and then assess whether to send a letter, apply for an injunction, or proceed directly with a lawsuit.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

VII. Relevant public cases (for reference only, not handled by our firm)

The following cases are all sourced from the official websites of courts at all levels, judicial authorities, and authoritative media outlets, and are not related to the cases handled by our firm. They are provided solely for reference in understanding relevant adjudication rules and do not constitute opinions on specific cases.

[Case No.](2024) Yumin Terminal Case No. 342
[Trial Court]The first-instance trial was conducted by the First Intermediate People's Court of Chongqing, and the second-instance trial was conducted by the Chongqing Higher People's Court (in the case of Chongqing Jia Technology Co., Ltd. v. Liu ** et al. concerning the infringement of trade secrets).
[Judicial Summary]Liu * once served as the legal representative and controlling shareholder of the company. During his tenure at the company, he had the right to manage the customer list. Before leaving the company, he obtained the source code of the company's "Quanfangtong Housing Information Management System" and, together with former administrative staff member Wang ** and others, resigned from the company to join his newly established company. The newly seized software source code of the new company was found to be identical to the trade secrets claimed by the right holder. The customer data included the right holder's customer list, and some of the customers had become clients of the new company. The court determined that this constituted an infringement of trade secrets and applied the maximum punitive damages accordingly.
[Source]The official website of the Intellectual Property Court of the Supreme People's Court (Typical Cases of Intellectual Property Court of Chongqing Serving and Protecting Scientific and Technological Innovation) (2024)

[Case No.]The case number has not been made public.
[Trial Court]The People's Court of Fengtai District, Beijing City (the second instance upheld the original judgment)
[Judicial Summary]After leaving the company, employee Yang * used the business information of the original company's 10 clients, including their names, contact information, and phone numbers, to solicit business for the new company he had joined. The court held that the relevant clients were formed through the original company's long-term investment, had established transaction habits, and could bring competitive advantages. The original company had signed a confidentiality agreement and taken reasonable confidentiality measures. The client information constituted trade secrets protected by the Anti-Unfair Competition Law. Yang * and the new company jointly infringed the trade secrets, and the court ordered them to jointly compensate for economic losses and reasonable expenses totaling more than 200,000 yuan.
[Source]Xinhua News Agency (Using the client information of the "old employer" to solicit business for the "new employer"? Beware of infringement) (2025)

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials, to avoid missing the statutory time limits.Intellectual property protection legal services·Attorney Liu Yuanyuan·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer in a timely manner.