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However, after the defendant filed an appeal against the judgment by the High Court, the Supreme Court rescinded the judgment and remanded the case to the High Court for reconsideration.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

The move marks the latest step in Temu’s push to protect brands’ intellectual property by collaborating with industry groups and enforcement agencies. Managing IP learns about a rapidly scaling strategy and two success stories
A counterfeiting crackdown targeting fake FIFA World Cup merchandise and new partner hires by CMS, HGF and Winston Strawn were also among the top talking points
Law firms need to accept the hard truth: talent migration isn't personal; it's business as usual
Judge Alan Albright is to leave his role at the Western District of Texas, and could return to private practice
Stobbs has successfully seen off a contempt of court application filed against the firm and two of its lawyers
After almost a quarter of a century, Marshall Gerstein has a new managing partner
Abbott winning another round against Sinocare and Menarini, and 'long arm' clarification on the UK's position within the UPC, were also among major developments
Maria Peyman, head of IP at Birketts, explains why the firm is adopting a ‘seamless approach’ for clients by integrating two of its practice areas
Matthew Swinn, who leads the firm’s IP practice, discusses why Mallesons is well-placed to remain a major IP force
Lawyers at A&O Shearman analyse developments regarding UPC’s long-arm jurisdiction, including its scope and jurisdictional limits
Gift this article