[Direct answer]It doesn't matter whether you have a phone or not when assessing the depth of the information. A client list that only includes client names, public contact information, or is based solely on long-term transactional relationships does not constitute a trade secret. Only a client list that contains in-depth information such as transactional habits, demand preferences, and pricing principles, and where the company has taken confidentiality measures, is considered a trade secret protected by the Anti-Unfair Competition Law. The Supreme Court's ruling in a case involving a client list for which 3 million yuan in compensation was awarded, and a case in Shanghai involving a dismissed employee for which 80,000 yuan in compensation was awarded, provide a clear benchmark for both positive and negative cases.

1. Problem background and typical scenarios

It's a persistent problem in various industries that salespeople take clients with them when they leave, and executives often take their clients and projects with them when they change jobs. From the company's perspective, they might feel that "the clients clearly belong to us", while from the employee's perspective, they might think "I can still find the clients' contact information, and it's their freedom to take the clients with them". The standard for determining ownership often gets stuck in the middle, and the final decision is only made after it's written into the court judgment.

II. Key points of dispute

First, the essence of confidentiality: deep information differs from publicly known information. Second, the determination of confidentiality measures: is it acceptable not to sign a confidentiality agreement? Third, the boundaries of the employee's "personal memory" defense. Fourth, the level of compensation and joint infringement.

III. Professional analysis by Henglue Lawyers

First, let's look at two benchmark cases: - In the **Customer List Trade Secret Case (2021) No. 312** handled by the Intellectual Property Court of the Supreme People's Court, the court determined that the client list involved in the case contained in-depth information about customer needs, pricing principles, and other transactional habits and intentions, constituting a core resource in the company's market competition. Executives had a fiduciary duty to keep client information confidential, and the absence of a separate confidentiality agreement did not affect the determination of confidentiality measures. Wei *Yi* was found guilty of joint infringement after transferring client projects during his employment and disclosing and using the client list after leaving the company. He was ordered to pay 3 million yuan in economic damages and 20,000 yuan in reasonable defense costs. - In the **Former Employee Case** handled by the Jinshan District Court of Shanghai, Li *Xiao* used over 1,000 client contacts he obtained during his employment to promote the wine he represented and individually offer free samples to attract customers. The court ruled that the information involved client names, addresses, contact information, transaction records, and personal preferences, which constituted trade secrets. The company had implemented software access controls, signed confidentiality agreements, and provided dedicated work phones. Li's lack of actual profits did not affect the infringement determination, and he was ordered to cease infringement and pay 80,000 yuan in damages. Key takeaways: 1. **Three Elements of Trade Secrets under Article 9 of the Anti-Unfair Competition Law**: - Not publicly known - Commercial value - Appropriate confidentiality measures - Client lists, as defined by the Supreme People's Court's judicial interpretation, include client names, addresses, contact information, transactional habits, intentions, and content that distinguish them from publicly available information. - Claims based solely on maintaining long-term stable transactions with specific clients are not supported. - The core of secrecy lies in depth (e.g., pricing thresholds, preferences, pain points) and aggregation (structured client lists). 2. **Evaluating Confidentiality Measures by Substance, Not Form**: - Permission systems, confidentiality agreements, dedicated work devices, and exit audits are sufficient to meet the legal requirements. - The absence of a separate confidentiality agreement does not invalidate the determination, as fiduciary duties inherently cover client information. 3. **Employee Defenses**: - Using personal skills to maintain client relationships and relying on memory are acceptable. - Mass copying, system exporting, or individual client development constitutes infringement. - The distinction lies in the method of obtaining information and the scale of its use. 4. **Compensation and Liability**: - Damages can be determined based on actual losses, infringement profits, or statutory compensation, with reasonable defense costs fully supported. - Joint infringement applies to pre-employment preparation and post-employment use. Beijing courts lead the nation in trade secret protection. Companies should first establish measures and then pursue legal action, while employees should first calculate damages before deciding whether to take client lists with them.

IV. Practical suggestions and legal basis

The first step is to establish measures: implement the four-step process of graded authorizations, confidentiality agreements, dedicated equipment, and exit audits; The second step is to store in-depth information: document in-depth information such as transaction habits and pricing principles, and separate it from publicly available information; The third step is to monitor exiting employees: conduct handover audits and warning talks, and export abnormal data as fixed evidence; The fourth step is to choose a path: pursue legal accountability under labor law and counter-claims simultaneously, with priority given to preserving evidence through notarization. Main legal basis: Articles 9 and 17 of the Anti-Unfair Competition Law of the People's Republic of China, and Articles 1 and 2 of the Supreme People's Court's Interpretation on the Application of Law in the Trials of Civil Cases Involving Infringements of Trade Secrets; specific application shall be subject to the currently effective regulations.

5. Henglu Law Firm's Advice

Three key points regarding client lists: Deep information and confidentiality measures are essential to maintaining secrecy; having phone numbers alone is not enough; not signing a confidentiality agreement does not exempt one from obligations; and executives bear the ultimate responsibility for ensuring integrity. The real risk lies in taking clients with you, as evidenced by the 3 million yuan judgment. For matters involving client lists and trade secret protection, please contact us for further assistance.Intellectual property protection and corporate lawThe service provides a comprehensive solution that integrates the accountability of departing employees and the management of labor employmentLabor arbitration and work-related injury compensationFor reference, you can refer to the sections dealing with the enforcement of judgments and the recovery of lossesCreditor's rights and debts, and enforcement casesFor cases involving litigation over unfair competition, it may be appropriate to combine them into a single category.Business and contract disputes in enterprises板块。

VI. Frequently Asked Questions

Q1: What are the criteria for a client list to be considered a trade secret?

It's not for public knowledge, has commercial value, and has taken confidentiality measures, and it contains in-depth information such as transaction habits and intentions.

Q2: Is it illegal for employees to contact old customers based on their memory?

The general experience of using the brain to memorize things is generally acceptable, but developing and reproducing deep information in bulk according to a list constitutes infringement.

Q3: Can I claim trade secrets if I haven't signed a confidentiality agreement?

Yes. Confidentiality measures should focus on the essence. As long as other measures such as access control and dedicated equipment are in place, it's reasonable to claim confidentiality.

Q4: Is it an infringement if a customer actively follows an employee around?

Generally, if a client voluntarily changes suppliers and the employees do not use confidential information, it does not constitute infringement, and the burden of proof lies with the employees.

Q5: How much compensation will be paid for infringing on the client list and trade secrets?

The compensation amount varies depending on the losses, profits, or statutory compensation. The compensation awarded in reference cases ranges from 80,000 yuan to 3 million yuan, excluding the expenses incurred in protecting one's rights.

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, 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 Number](2021) No. 312 of the Supreme People's Court's Intellectual Property Tribunal
[Trial Court]The Intellectual Property Court of the Supreme People's Court
[Judicial Summary]A Hong Kong development company sued Wei *Yi and others for infringing on the trade secrets of its client list. The Supreme Court held that the client list involves transactional practices and intentional information such as customer demand categories and pricing principles, and is a core resource in the company's market competition. Executives have a confidentiality obligation to protect customer information based on the principle of good faith, and the absence of a separate confidentiality agreement does not affect the determination of confidentiality measures. Wei *Yi, while employed, prepared for the establishment of a new company and transferred client projects. After leaving the company, he disclosed and used the client list with Hu * and was found guilty of joint infringement. The court ordered him to pay economic damages of 3 million yuan and reasonable expenses of 20,000 yuan for defending against the infringement.
[Source]The Intellectual Property Court of the Supreme People's Court (Final Judgment of December 2023)

[Case No.]The case number has not been made public.
[Trial Court]The People's Court of Jinshan District, Shanghai City
[Judicial Summary]After Li * left the wine sales company, he used the information of more than 1,000 customers he had obtained during his employment to promote the red wine he was representing and gave away free wine to each of them to attract customers. The court held that the customer information involved in the case included in-depth information such as names, addresses, contact information, transaction records, and personal preferences. The company had set up software viewing permissions, signed confidentiality agreements, and provided work phones, which constituted trade secrets. Although Li * did not actually make a profit, this did not affect the determination of infringement. The court ordered him to immediately stop the infringement and compensate for economic losses and reasonable expenses for defending his rights, totaling 80,000 yuan.
[Source]Shanghai Court Network, 2024-11 (2024-11)

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Intellectual property protection legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public 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. If you encounter disputes, please consult a practicing lawyer in time.