Rainbow Chemical, a leading producer of high-performance organic pigments and solvent dyes based in Liaoning Province, China, announced on March 15 that it has been sued by Xineco Chemical (Shanghai) Co., Ltd. for alleged infringement of trade secrets. Xineco Chemical claims that Rainbow Chemical hired two former employees of Xineco who disclosed confidential information to Rainbow Chemical and that Rainbow Chemical used the trade secrets for environmental impact assessment of DPP pigments. DPP pigments are organic dyes and pigments based on the heterocyclic dilactam 2,5-dihydropyrrolo [3,4- c ]pyrrole-1,4-dione, widely used in optoelectronics. Xineco Chemical demands that Rainbow Chemical stop using the trade secrets and pay compensation of about 200 million yuan (including case fees). The case is currently at the stage of jurisdiction objection.

Rainbow Chemical denies any wrongdoing and asserts that it obtained the technology process involved in the case through legal and reasonable channels of cooperation with Nantong Zhengyan New Material Technology Co., Ltd., a partner company that provided a complete set of technical data such as process route and design drawings for the project. Rainbow Chemical also claims that it used industry public common technical knowledge, based on its own technical accumulation, to further independent research and development. Rainbow Chemical argues that there are many procedural problems in filing this case, and that Xineco Chemical’s evidence for its claim that the relevant technology belongs to trade secrets has huge flaws. Rainbow Chemical is actively stating its views to the people’s court and requesting non-public identification and identity identification.

This case involves DPP pigment products in one phase project “Clean Production Project for High Color Fastness High Light Fastness Organic Pigments And Intermediates” raised by non-public offering investment projects.The production line has been completed with a total investment of 108 million yuan (excluding public works And related taxes).The product has not been sold yet.This case does not involve any other products except DPP pigments.Since this case has not yet been heard in court,the company cannot temporarily judge its impact on current profit or future profit.The company attaches great importance to this lawsuit,and has actively responded,to safeguard its legitimate rights And interests according to law And regulations.