Shenzhen Senior Technology Material Co. Ltd. v. Celgard, LLC

Celgard, LLC (plaintiff), a company based in the United States, was a maker of battery separators. Zhang Xiaomin was employed at Celgard before leaving the company with the stated intention of going to work at General Electric, which was not a Celgard competitor. However, Celgard management later discovered that Zhang had joined the China-based Shenzhen Senior Technology Material Co. Ltd. (Senior) (defendant), which also manufactured battery separators. Celgard sought an injunction against Senior and Zhang in United States district court, alleging that Zhang, who had signed a nondisclosure agreement, was using Celgard trade secrets in the making of battery separators for Senior. Senior initiated proceedings in China, seeking a declaration of nonliability. Meanwhile, Celgard pursued a contract with a battery manufacturer based in the United Kingdom but was undercut by Senior. Celgard brought another action against Senior in the England and Wales High Court of Justice. To support its own claims of trade-secret misappropriation, Celgard provided information as to the specific chemical recipes comprising its trade secrets. The court found that Celgard had valid claims of trade-secret misappropriation. Senior appealed to the High Court of Justice Civil Division’s Court of Appeal, arguing that Celgard had failed to adequately identify the trade secrets at issue.