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Businesses China United States

Federal Prosecutors Pursuing Criminal Case Against Huawei for Alleged Theft of Trade Secrets: Report (wsj.com) 87

Federal prosecutors are pursuing a criminal investigation of China's Huawei for allegedly stealing trade secrets from U.S. business partners, including the technology behind a robotic device that T-Mobile used to test smartphones, WSJ reported Wednesday. From a report: The investigation grew in part out of civil lawsuits against Huawei, including one in which a Seattle jury found Huawei liable for misappropriating robotic technology from T-Mobile's Bellevue, Wash., lab, the people familiar with the matter said. The probe is at an advanced stage and could lead to an indictment soon, they said. The link to the source article may be paywalled; here's an alternative source.
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Federal Prosecutors Pursuing Criminal Case Against Huawei for Alleged Theft of Trade Secrets: Report

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  • by Spy Handler ( 822350 ) on Wednesday January 16, 2019 @04:09PM (#57974098) Homepage Journal

    Here's a pretty good CNBC article [cnbc.com] about Silicon Valley execs secretly agreeing with Trump's hardline stance on China. Keep in mind, SV tech execs tend to be pretty liberal and CNBC is a part of NBC News so they're well left of center as well.

    "If we're ever going to do anything about China, this is the perfect time. If we're ever going to stop them from forcing our companies into dubious joint ventures that represent ridiculous technology transfers and often outright theft, this is the moment."

    • by Anonymous Coward

      100% agree. China has only risen on the back of America (and other western countries') stolen IP. A PLA APT group had Nortel hacked for almost a decade and was exfiltrating trade secrets. Huawei founder ex-PLA. Hmm..

    • Comment removed based on user account deletion
  • by JoeyRox ( 2711699 ) on Wednesday January 16, 2019 @04:31PM (#57974188)
    They didn't criminally prosecute the financial industry for blatant fraud that lead to the loss of trillions of dollars of wealth and almost destroyed the economy but they're going after a company for allegedly stealing the technology that drop-tests $200 smartphones.
    • by Anonymous Coward

      They didn't criminally prosecute the financial industry for blatant fraud that lead to the loss of trillions of dollars of wealth and almost destroyed the economy but they're going after a company for allegedly stealing the technology that drop-tests $200 smartphones.

      The American public is either extremely ignorant or just very tolerant of corruption at senior levels in their government, and of massive problems in legal ethics in the US legal system (these two problems are closely related, of course - but either one can cause inconsistencies in prosecution).

      The financial industry bought its way out of this. The Chinese will as well.

      Invest in America, buy a politician. Remember, it's not a bribe, it's a campaign contribution, no matter what logic or reason may have to

    • Neither they filed criminal suit against Steve Job (who misappropriated secret from Xerox)

      As for this Huawei-T-Mobile case, how could one steal secret if he has signed the NDA and obtained the rights to that secret, as long as the secret is never reviewed to 3rd party. In fact, that verdict was not about trade secret theft at all and only about contractual obligation [geekwire.com]:

      According to the jury’s verdict, T-Mobile was not awarded any damages relating to the trade secrets claim and there was no award of punitive damages. Although the jury awarded damages under the breach of contract allegation, the amount was a small fraction of what T-Mobile requested.

      Of course, in the current trade war, the US will abuse the law and find every possible way to launch PR actions against major Chinese companie

  • As long as they do, the WTO needs to treat them that way and remove "most favored nation" status, so that all deals with Chinese entities are much harder.
    Basically, the Chinese Govt needs to treat foreign companies exactly the same as local, Chinese companies and not demand technology transfer, partner Chinese companies, 51% Chinese ownership and selective enforcement must stop.

A committee takes root and grows, it flowers, wilts and dies, scattering the seed from which other committees will bloom. -- Parkinson

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