Employee misappropriation of trade secrets in today’s globalized, high-technology economy poses a real and substantial threat. Since there is no any specific statute in Taiwan, this article is intended to provide a general overview regarding covenants not to compete. A covenant not to compete can generally be crafted to limit a former employee’s ability to compete against his or her former employer for a reasonable period of time. ROC courts have enforced such agreements if they are ancillary to employment, reasonably limited in scope and duration and designed to protect legitimate business interests.