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

Cookies Settings

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However, after the defendant filed an appeal against the judgment by the High Court, the Supreme Court rescinded the judgment and remanded the case to the High Court for reconsideration.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

An increase in instructions from domestic companies and litigation for international clients are driving success for the Chinese IP firm, according to two lead partners
Ankur Sangal said he wants his team, nearly 30-strong already, to respond to a growing demand for specialist, commercially focused IP advice in a ‘rapidly evolving’ Indian market
As AI adoption accelerates across corporate IP departments, Simon Webster, president of IP at Clarivate, argues that success will depend less on technology alone and more on data quality, workflow design, and organisational readiness
After months of speculation over his next move, former Texas patent judge Alan Albright has found a new home at the firm’s Austin office
Law firms can now participate in the research for the Managing IP Awards and IP STARS rankings
The firm has hired former Norton Rose Fulbright patent prosecution leader Ronak Kalhor-Witzel as it seeks to strengthen its position in high-value technology, UPC and international patent matters
Angela Dunning shares why it’s an exciting time to be practising at the intersection of AI and IP, where the law is actively being made
The Dutch division is cementing its position as the UPC's primary alternative to Germany, with a consistent share of filings and growing market influence
Junior lawyers aren’t unwilling to work hard, as some seniors believe; rather, they are rejecting traditional career advancement models that have limited payoff
Rebekah Gay discusses overcoming self-doubt, supporting the next generation of women lawyers, and how changing client demands are reshaping IP practice
Gift this article