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However, after the defendant filed an appeal against the judgment by the High Court, the Supreme Court rescinded the judgment and remanded the case to the High Court for reconsideration.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

After five IP partners left the firm for White & Case, the IP market could yet see more laterals
The court plans to introduce a system for expert-led SEP mediation, intended to help parties come to an agreement within three sessions
Paul Chapman and Robert Lind, who are retiring from Marks & Clerk after 30-year careers, discuss workplace loyalty, client care, and why we should be optimistic but cautious about AI
Brantsandpatents is seeking to boost its expertise across key IP services in the Benelux region
Shwetasree Majumder, managing partner of Fidus Law Chambers, discusses fighting gender bias and why her firm is building a strong AI and tech expertise
Hady Khawand, founder of AÏP Genius, discusses creating an AI-powered IP platform, and why, with the law evolving faster than ever, adaptability is key
UK firm Shakespeare Martineau, which secured victory for the Triton shower brand at the Court of Appeal, explains how it navigated a tricky test regarding patent claim scopes
The firm’s managing partner said the city is an ‘exciting hub of ideas and innovation’
In our latest podcast, Deborah Hampton talks through her hopes for the year, INTA’s patent focus, London 2026, and her love of music
Tech leads at three IP service groups discuss why firms need to move away from off-the-shelf AI products and adopt custom solutions
Gift this article