Uncategorized [Post-Resignation Duty of Confidentiality] Virtually Indefinite! The Radical Shift in Criminal Risk Following UCPA Revisions and Latest Precedents
The legal risk surrounding the leakage of corporate secrets has dramatically escalated due to the revision of the Unfair Competition Prevention Act (UCPA), effective July 2024, and critical precedents from 2025. The notion that an employee's "post-resignation duty of confidentiality" simply "expires after a few years" is no longer valid.Latest case law, such as a ruling ordering approximately ¥210 million JPY in damages for the use of a customer list 8 years after the employee's resignation, indicates that the duty of confidentiality has effectively entered a "lifetime validity" phase. Furthermore, the corporate fine for acts intended to take trade secrets overseas has been raised to a maximum of ¥1 billion JPY, and the threshold for "criminal prosecution → arrest" in malicious cases has been significantly lowered.