The U.S. International Trade Commission (ITC) recently issued a substantial modification to its initial determination in the Sino Legend (Zhangjiagang) Chemical Co., Ltd. and SI Group Inc. intellectual property case. The Commission ruled that the majority of SI Group's alleged business secrets are unprotectable. The ITC also struck down the originally recommended general exclusion order.

In the nine years after SI Group entering China, the legal war between the two sides has never stopped.

At the end of 2008, SI Group reported to the Shanghai Public Security Bureau Economic Criminal Investigation General Unit, alleging that Sino Legend illegally took its business secrets by hiring its former staffs. After nearly a year long survey, the investigation general unit held that Sino Legend has not taken its business secrets.

In 2010, SI Group filed a lawsuit against Sino Legend at Shanghai No.2 Intermediate People's Court. SI Group alleges that Sino Legend has illegally taken SI Group business secrets. As the case went on, in March 2011 SI Group withdrew the initial case and immediately re-filed a new lawsuit. In May 2013, SI Group withdrew the case again, but was rejected by the Shanghai court.

After failing to obtain relief in China, SI Group filed its ITC complaint in May 2012 against Sino Legend, alleging that Sino Legend misappropriated its business secrets, and requesting ITC issue an excluding order and a permanent cease and desist order.

At the end of January 2014, ITC ruled that the majority of SI Group's alleged business secrets are unprotectable, and truck down the originally recommended general exclusion order. The ITC also rejected SI's request to exclude Sino Legend SL-1805 and SL-7015 resins from U.S. import.

SI Group is a leading global developer and manufacturer of chemical intermediates, specialty resins, and solutions, while Sino Legend is the largest producer in this field in Asia. In less than six years after beginning full-scale production, Sino Legend has become the largest Asian manufacturer of resins for the tire and rubber industries, holding 70 percent of the Chinese market and 30 percent share for the rest of Asia.

(China IP News)