Taiwan: Prepare carefully before suing former employee

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Taiwan: Prepare carefully before suing former employee

In Taiwan, in the event that a departing employee joins a competitor of his/her former employer and thus breaches his/her contract of employment containing a non-competition clause, the former employer, depending on the degree of injury, cannot only claim damages but also seek an injunction or preliminary injunction to prevent its trade secrets or other intellectual property from being divulged. Back in 2014, TSMC successfully restrained its former head of R&D department from working for Samsung in a lawsuit upheld by the Supreme Court.

This March, the Supreme Court published another verdict regarding a non-competition covenant. In this instance, a resigned employee signed a contract including a three-year non-competition clause and a confidentiality clause. So, when the employee was hired by a competitor in China soon after his resignation in 2015, the former employer filed a motion for a preliminary injunction. Both the District Court and the High Court granted the motion for the reasons that the defendant was in breach of contract and the former employer would suffer significant damages if the crucial technology it owned, which accounted for up to 96.56% of the company's total annual revenue, were passed on to its competitor.

However, after the defendant filed an appeal against the judgment by the High Court, the Supreme Court rescinded the judgment and remanded the case to the High Court for reconsideration. The Supreme Court held that the High Court did not rule on whether the consequential damages suffered by the defendant, to the extent that relevant evidence was present in the record, would be more serious than those suffered by the former employer if the motion were granted.

This case sheds light on the need for a former employer to weigh scrupulously the damages that may be suffered by the parties concerned and to prepare the relevant objective data and analysis prior to filing a motion for preliminary injunction.

liu.jpg

Frank FJ Liu


Saint Island International Patent & Law Offices7th Floor, No. 248, Section 3Nanking East RoadTaipei 105-45, Taiwan, ROCTel: +886 2 2775 1823Fax: +886 2 2731 6377siiplo@mail.saint-island.com.twwww.saint-island.com.tw

more from across site and SHARED ros bottom lb

More from across our site

Blank Rome’s launch in West Palm Beach, marked by the arrival of two IP partners, comes in response to rising demands from technology clients
Abion says it has brought on board Matt Serlin as its first US hire to meet client demand for ‘full circle’ trademark and domain name services
News of Health Hoglund joining Sisvel and the Delhi High Court staying a $2.2 million decree in favour of Philips were also among the top talking points
The firm is continuing its aggressive IP hiring streak with the addition of partner Matthew Rizzolo
Pantech counsel Shogo Matsunaga speaks exclusively to Managing IP about how his team proved Google’s unwillingness, and ultimately secured a landmark SEP settlement
New partners, including the firm’s first female head of a department, are eyeing a deeper focus on client understanding
Chunguang Hu of China PAT explains why his ‘insider’ experience as a patent examiner benefits clients and why he wants to debunk the myth that IP has limited value in China
Essenese Obhan shares his expansion plans and vision of creating a ‘one-stop shop’ for clients after Indian firms Obhan & Associates and Mason & Associates joined forces
From AI and the UPC to troublesome trademarks in China, experts name the IP trends likely to dominate 2026
Colm Murphy says he is keen to help clients navigate cross-border IP challenges in Europe
Gift this article