Trade Secrets Trends

Trade Secrets Trends

Analysis and commentary on the latest developments in trade secrets protection, disputes, and enforcement

Category Archives: Criminal Prosecution

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Another Case on the Intersection of Criminal and Civil Trade Secret Claims

Posted in Criminal Prosecution, U.S. Litigation
“Ex-DuPont Worker Wins Discovery Stay In Trade Secrets Suit,” an article published earlier today by Law360, cites Crowell & Moring Partner, Mike Songer, as DuPont’s counsel in E.I. du Pont de Nemours and Co. v. Anchi Hou et al., 1:17-cv-00224 (D. Del). The case involves both a civil proceeding and a related criminal case, and the… Continue Reading

U.S. Justice Department Announces Charges Against International Conspirators For Stealing Trade Secrets to Benefit China-based Company

Posted in Criminal Prosecution
In a press release last week, the U.S. Justice Department announced charges against a group of international conspirators for allegedly stealing trade secrets from an unidentified Houston company. Those charged include four U.S. citizens, two Chinese nationals, and a Canadian national. The beneficiary of the alleged theft appears to be a China-based company with funding… Continue Reading

Employee Who Stole the Cookie Recipe From the Cookie Jar Fined €1 (Yes, that’s one single Euro)

Posted in Criminal Prosecution, Cyberhacking, EU Regulation
The Criminal Court of Mechelen (Belgium) ruled in favor of Bofin Biscuits against a former production assistant accused of having stolen the assistant director of the cookie baker’s laptop. The laptop allegedly contained the secret recipes of all the cookies produced by Bofin Biscuits. This case is interesting because of the nature of the secrets… Continue Reading

United States v. Nosal: Keep Your Friends Close, but Your Passwords Even Closer

Posted in Criminal Prosecution, Data Protection, U.S. Litigation
On July 5, 2016, the Ninth Circuit affirmed the conviction of David Nosal, an ex-employee of Korn/Ferry, an executive search firm, who left to start a competing firm. With Nosal’s knowledge and encouragement, two other former employees of Korn/Ferry used a current employee’s credentials to gain access to the Korn/Ferry database and take confidential information.… Continue Reading

Best Practices for Responding to Potential Trade Secret Theft

Posted in Criminal Prosecution, Cyberhacking, Data Protection, U.S. Litigation
Companies sometimes discover warning signs or clear activity of trade secret theft but do not know how to deal with the issue right away.  Whether it is a current employee who remotely accesses company trade secret information while on vacation, or a departing employee who conveniently failed to return a company laptop, that company may… Continue Reading

Chinese Scientists Accused of Trade Secret Theft in Recent DOJ Indictment

Posted in Criminal Prosecution
Late last month, the U.S. Attorney’s Office for the Eastern District of Pennsylvania announced the indictments of GlaxoSmithKline (GSK) scientists Yu Xue and Lucy Xi, as well as three of their associates for trade secrets theft, wire fraud, and conspiracies to commit both crimes. The indictment accuses the scientists of transmitting proprietary GSK data to… Continue Reading

Keeping Up with Cybercriminals: House Passes Bill to Formally Establish National Computer Forensics Institute

Posted in Criminal Prosecution, Cyberhacking, Data Protection, Legislation & Policy
On Monday November 30, the House demonstrated its resolve to fight high-tech crime such as trade secret theft by passing the Strengthening State and Local Cyber Crime Fighting Act (H.R. 3490). The Act formally establishes the National Computer Forensics Institute, which is located in Hoover, Alabama and has been operating since 2008. Under the Act,… Continue Reading

DuPont v. Kolon Trade Secrets Case Recognized as “Global Dispute of the Year: U.S. Litigation” by The American Lawyer

Posted in Criminal Prosecution, U.S. Litigation
Crowell & Moring’s work on the DuPont v. Kolon matter, one of the largest trade secrets cases of its kind, was recognized at The American Lawyer’s third annual Global Legal Awards, winning “Global Dispute of the Year: U.S. Litigation.” The firm represented DuPont in recovering Kevlar® trade secrets stolen by a South Korean conglomerate. After… Continue Reading

Twice Convicted, Twice Reversed: Another Aleynikov Code Theft Conviction Overturned

Posted in Criminal Prosecution, Cyberhacking, U.S. Litigation
Sergey Aleynikov, the ex-Goldman Sachs computer programmer convicted of stealing high-frequency trading source code, has once again succeeded in reversing a criminal conviction related to his infamous code-copying acts. Federal prosecutors had previously charged, tried, and won a conviction of Aleynikov for violations of the federal National Stolen Property Act (NSPA) (18 USC § 2314) and… Continue Reading

Universities and Economic Espionage: Real Risks and New Burdens

Posted in Criminal Prosecution, Data Protection
The recent arrests of Chinese nationals for alleged economic espionage are raising eyebrows across American industries, who are rightfully asking how they can protect themselves from becoming the next foreign target. U.S. universities have been key figures in these headlines. The risk of economic espionage is a serious one for higher education because universities are… Continue Reading

Calling the Cops: Managing a Criminal Investigation and Prosecution of Trade Secrets Theft

Posted in Criminal Prosecution, U.S. Litigation
Editor’s Note: This is the third in a series of posts addressing how corporate victims of trade secrets theft can enforce their intellectual property rights through the criminal justice system.  Prior posts can be found here and here. Once a criminal investigation of trade secrets theft is underway, it’s not just a matter of the corporate… Continue Reading

Chair of Temple University’s Physics Dept. Indicted for Providing U.S. High Tech to China

Posted in Asia, Criminal Prosecution
The chair of Temple University’s physics department has been indicted for allegedly providing U.S. technology to China. Dr. Xioaxing Xi, a U.S. citizen and native of China, is an expert in the field of magnesium diboride thin film superconducting technology. According to the indictment, Xi was involved in a scheme over many years to funnel… Continue Reading

Calling the Cops: Initiating a Government Investigation of Trade Secrets Theft

Posted in Criminal Prosecution, U.S. Litigation
Editor’s Note: This is the second in a series of posts addressing how corporate victims of trade secrets theft can enforce their intellectual property rights through the criminal justice system.  The introductory post can be found here.   The criminal enforcement landscape The federal government has intensified its focus on intellectual property theft in recent… Continue Reading

Split Verdict – Second Criminal Trial of Infamous Goldman Source-Code Thief Concludes

Posted in Criminal Prosecution
Sergey Aleynikov, the former Goldman Sachs computer programmer accused of stealing computer source code powering the bank’s high-frequency trading platform, has been convicted by a New York jury of a single count of Unlawful Use of Secret Scientific Material.  The jury hung on a second Unlawful Use count and acquitted Aleynikov on a third count… Continue Reading

Calling the Cops: Enforcing Trade Secret Rights Through Criminal Prosecution

Posted in Criminal Prosecution, U.S. Litigation
One remarkable aspect of the resolution announced last week in the long-running DuPont-Kolon trade secrets dispute is the transfer of $275 million to our client DuPont through the criminal restitution process. This highlights an option for corporate victims of trade secrets theft that is too often overlooked – initiation of criminal proceedings in parallel with civil litigation.  In fact,… Continue Reading

Bellwether DuPont-Kolon Trade Secrets Case Resolved Through Civil Settlement and Criminal Guilty Plea

Posted in Criminal Prosecution, U.S. Litigation
E.I. DuPont de Nemours & Co. settled its long-running trade secret dispute against Kolon Industries, Inc. over the theft of trade secrets related to DuPont’s flagship Kevlar® product. Crowell & Moring attorneys, in partnership with McGuireWoods LLP, represented DuPont in the six-year battle. Kolon also pled guilty to one count of a conspiracy to convert… Continue Reading