Q1.1 — Nature of Trade Secrets

Question: How easily could your core trade secrets be reverse-engineered if a competitor obtained them?

• 0: Secrets are documented process knowledge that is very difficult to reverse-engineer or use without extensive tacit knowledge
• 1: Secrets combine technical and commercial elements; moderately difficult to exploit without additional background
• 2: Secrets are technical specifications or designs that could be replicated with moderate effort
• 3: Secrets are directly replicable (e.g., source code, chemical formulae, customer lists with pricing)
• 4: Secrets are digital assets that can be copied instantly and used with no additional investment

Q1.2 — Competitive Value and Impact

Question: What would be the business impact if your core trade secret was disclosed to your top competitor in China?

• 0: Minimal impact — the trade secret has limited competitive differentiation value
• 1: Minor impact — competitor would gain marginal advantage
• 2: Moderate impact — competitor would gain meaningful advantage; some revenue at risk
• 3: Major impact — significant revenue and market share at risk (10-25% of China revenue)
• 4: Critical impact — the China business would be materially impaired or become non-viable

Q1.3 — Competitive Dynamics in China

Question: How intense is the competitive pressure from Chinese companies in your industry?

• 0: Very low — no direct Chinese competitors in your space
• 1: Low — a few Chinese competitors but with different technology approaches
• 2: Moderate — several Chinese competitors actively competing for the same market
• 3: High — Chinese competitors are rapidly catching up and actively seeking technology transfer
• 4: Very high — Chinese competitors are aggressively pursuing your technology through all means including talent poaching

Q1.4 — Operational Footprint in China

Question: How extensive is your physical and personnel footprint in China?

• 0: No physical presence — only exports to China (lowest exposure)
• 1: Sales office only, no R&D or manufacturing
• 2: Manufacturing or distribution facility with local employees but no local R&D
• 3: R&D centre or joint venture with Chinese partner involving technology transfer
• 4: Full operations including R&D centre, manufacturing, and extensive local workforce

Q1.5 — Regulatory Sensitivity

Question: Is your technology or data subject to China’s technology export controls or data security regulations?

• 0: No — your technology is not in any restricted category
• 1: Minimal — minor regulatory touchpoints only
• 2: Moderate — some technology categories may be subject to review
• 3: Significant — technology is on the China Technology Export Control List (Catalogue of Technologies Prohibited or Restricted from Export)
• 4: Critical — operating in a sensitive sector (defence, AI, semiconductors, biotechnology) with active regulatory scrutiny

Section 1 Subtotal: ____ / 20

Q2.1 — Digital Access Controls

Question: How comprehensive are your digital access controls for trade secret information?

• 0: Role-based access control with multi-factor authentication, full audit logging, and automated access revocation
• 1: Role-based access control with audit logging but manual access reviews
• 2: Basic password protection with shared folders; limited access control granularity
• 3: Minimal access controls — most employees can access most information
• 4: No systematic access controls — information is freely accessible across the organization

Q2.2 — Physical Security

Question: What physical security measures protect areas where trade secrets are stored or used?

• 0: Comprehensive — locked areas, access card systems, CCTV, visitor logs, clean desk policy, secure destruction of documents
• 1: Good — most areas secured but with some gaps in visitor management or document disposal
• 2: Moderate — some security measures but inconsistent implementation across locations
• 3: Minimal — basic locks and keys only; no systematic physical security programme
• 4: None — no physical security measures in place to protect confidential information

Q2.3 — Cybersecurity Measures

Question: What cybersecurity measures are in place to prevent data exfiltration?

• 0: Enterprise-grade DLP (Data Loss Prevention) system, endpoint protection, network monitoring, email filtering, and USB device control
• 1: Partial DLP with monitoring of certain channels; basic endpoint protection
• 2: Standard antivirus and firewall; no DLP or data exfiltration monitoring
• 3: Minimal cybersecurity — basic firewall only
• 4: No dedicated cybersecurity measures

Q2.4 — Evidence Preservation Readiness

Question: How prepared are you to preserve digital evidence in the event of a suspected breach?

• 0: Pre-established forensic readiness plan with retained forensic experts, documented procedures, and tools in place
• 1: Established incident response plan but primarily focused on IT security rather than legal evidence preservation
• 2: Basic incident response plan but no forensic preservation procedures
• 3: No formal plan — reactive approach with significant risk of evidence loss
• 4: No awareness or preparation for digital evidence preservation

Section 2 Subtotal: ____ / 20

Q3.1 — Employee Turnover Rate in Sensitive Roles

Question: What is the annual turnover rate among employees with access to trade secrets?

• 0: Below 5% — very stable workforce in sensitive positions
• 1: 5–10% — moderate turnover
• 2: 10–20% — elevated turnover indicating some retention risk
• 3: 20–30% — high turnover suggesting significant knowledge leakage risk
• 4: Above 30% — critical turnover; near-certain likelihood of systematic leakage

Q3.2 — Offboarding Process Rigour

Question: How thorough is your employee offboarding process?

• 0: Comprehensive offboarding — exit interview, return of all company property (laptop, documents, access cards), immediate IT access revocation, signed confirmation of ongoing confidentiality obligations, and post-exit monitoring
• 1: Good — most elements present but with some gaps in monitoring or documentation
• 2: Moderate — access revoked and property returned but no formal exit interview or confidentiality reminder
• 3: Minimal — access revoked eventually but no systematic property return verification
• 4: None — employees leave without any offboarding procedures

Q3.3 — Non-Compete and NDA Coverage

Question: What percentage of employees with access to trade secrets are covered by enforceable NDAs and non-compete agreements?

• 0: 100% — all employees have signed China-compliant NDAs and non-competes with ongoing compensation arrangements
• 1: 80–99% — most covered but with some gaps
• 2: 60–79% — majority covered but significant portion not contractually bound
• 3: 30–59% — less than half of at-risk employees covered
• 4: Less than 30% or no agreements in place

Q3.4 — Training and Awareness

Question: How frequently and comprehensively are employees trained on trade secret protection?

• 0: Annual mandatory training with testing, plus targeted training for high-risk roles; training records maintained
• 1: Occasional training (every 2–3 years) and new-hire orientation includes IP basics
• 2: New-hire orientation only, no ongoing training
• 3: Ad hoc training with no structured programme
• 4: No training on trade secrets or confidentiality

Section 3 Subtotal: ____ / 16

Q4.1 — NDA Programme Maturity

Question: How mature is your NDA programme for China operations?

• 0: Comprehensive programme with bilingual NDAs, centralized registry, automated renewal tracking, and regular legal compliance review
• 1: Functional programme with bilingual NDAs and registry but less automation
• 2: Basic NDAs but limited tracking or compliance review
• 3: Ad hoc NDA use — some NDAs in place but no systematic programme
• 4: No China-specific NDAs in use

Q4.2 — Reasonable Protection Measures Documentation

Question: How well-documented are your reasonable protection measures (as required by AUCL Article 32)?

• 0: Comprehensive documentation — trade secret register, security policies, access control records, training attendance, NDA register, and incident logs all systematically maintained
• 1: Good documentation — most records kept but with some gaps in systematic organization
• 2: Basic documentation — some records exist but not comprehensive or easily accessible
• 3: Minimal documentation — little evidence of protection measures beyond basic NDAs
• 4: No documentation — no systematic records of any protection measures

Q4.3 — Legal Counsel Readiness

Question: Do you have established relationships with China-based legal counsel experienced in trade secret litigation?

• 0: Retained counsel with proven trade secret litigation experience; pre-agreed engagement terms in place
• 1: Established relationship with IP-focused law firm but no specific trade secret retainer
• 2: General counsel relationship with a law firm that has IP capabilities
• 3: No established China legal counsel — would need to engage urgently
• 4: No awareness of how to find or engage China trade secret counsel

Section 4 Subtotal: ____ / 12

Q5.1 — Third-Party Access to Trade Secrets

Question: How many third parties (suppliers, contract manufacturers, consultants, distributors, agents) have access to your trade secrets?

• 0: None — all operations are in-house with no third-party access to confidential information
• 1: 1–3 third parties with very limited access to non-core information
• 2: 4–10 third parties with some accessing core trade secrets
• 3: 10–25 third parties — significant supply chain exposure
• 4: More than 25 third parties or reliance on Chinese partners for core technology development

Q5.2 — Third-Party Security Verification

Question: How thoroughly do you vet and monitor third parties for trade secret protection capabilities?

• 0: Comprehensive — security questionnaires, on-site audits, contractual security obligations, and periodic re-verification
• 1: Good — security questionnaires and some audits for high-risk vendors
• 2: Moderate — contractual security obligations but no verification or audit
• 3: Minimal — NDAs in place but no security vetting
• 4: None — no vetting or contractual protection for third-party trade secret access

Q5.3 — Joint Venture/Partnership Risk

Question: Do you operate through joint ventures or strategic partnerships where technology is shared with a Chinese entity?

• 0: No JV or partnership — wholly-owned operations only
• 1: Partnership with limited technology sharing (e.g., distribution or sales only)
• 2: Technology licensing to a Chinese entity with clear contractual boundaries
• 3: Joint venture with IP ring-fencing provisions and shared governance
• 4: Joint venture with full technology sharing and limited IP protection mechanisms

Section 5 Subtotal: ____ / 12

Score Summary Worksheet