Crowell & Moring invites you to attend the webinar, 2020 Trade Secrets Year in Review, taking place on Thursday, January 28 at 12:00 pm ET. We will cover what you need to know about the big cases, changes, and developments relating to trade secrets from the past year.
Last week, a District Court in the Southern District of New York imposed a $40,000 sanction on SIMO Holdings, Inc. (“SIMO”) for violating a pretrial discovery protective order. SIMO disclosed four documents covered under the protective order to persons not permitted to view those documents, and the Court determined that a $10,000 sanction for each document was warranted.
Continue Reading Plaintiff Sanctioned for Violating Protective Order by Sharing Discovery
A new indictment alleging misappropriation of U.S. oil and gas trade secrets by a Chinese energy company, its U.S.-based affiliate, and an executive is another example in a recent string of prosecutions for trade secrets theft involving China, a topic that we have covered on the blog here.
Continue Reading Grand Jury Indicts Chinese Energy Company, U.S. Oil and Gas Affiliate, and Chinese National on Trade Secrets Charges
The U.S. government is continuing its endeavor of prosecuting individuals for the theft of U.S. trade secrets and for allegedly selling or bringing these trade secrets to China. The U.S. government is demonstrating that it considers the protection of trade secrets, particularly those used in national defense and other essential technology, to be a priority.
On October 1, 2020, the U.S. Attorney’s Office for the District of Massachusetts reported that Haoyang Yu, a U.S. citizen who was born in China, his wife Yanzhi Chen, and their company Tricon MMIC LLC, were charged in a 24-count indictment for the alleged theft of American trade secrets worth millions of dollars from Analog Devices. Analog Devices, which has its headquarters in Norwood, Massachusetts, is an international semiconductor company. Yu was charged in 2019 with stealing, downloading, and copying Analog Devices’ trade secrets. Now, he and his wife have been charged with possession and attempted possession of a trade secret; transporting stolen goods; smuggling; visa fraud; and procuring U.S. citizenship unlawfully.…
Continue Reading Chinese Individual Indicted for Alleged Trade Secret Theft from Semiconductor Company
On September 14, 2020, China’s highest court, the Supreme People’s Court of the People’s Republic of China, released the “Opinions on Increasing Enforcement Against Intellectual Property Infringement According to Law” (关于依法加大知识产权侵权行为惩治力度的意见) (“Opinions”).
The Opinions cover four main areas: (1) Evidence Preservation, (2) Injunctions, (3) Monetary Relief, and (4) Criminal Enforcement
- Evidence Preservation
- Articles 1-4 cover evidence preservation. Evidence preservation is a measure taken by Chinese courts to investigate, collect, and preserve evidence when it may be destroyed or difficult to collect in the future. Article 2 directs courts to promptly review and decide an application for an injunction and an application for evidence preservation when a party applies for both. Article 4 allows courts to make inferences in favor of an intellectual property rights holder when the alleged infringer damages or transfers evidence subject to an evidence preservation order.
Not surprisingly given the hundreds of billions of dollars of American intellectual property lost to China each year, trade secret theft and China is a hot topic for the public and private sector alike.
The U.S. Department of Justice has secured yet another conviction against a Chinese national for trade secret theft which is part of a larger push to protect valuable intellectual property.
Li Chen, a long time biotech researcher in a medical lab at Nationwide Children’s Hospital Research Institute in Ohio, pled guilty to conspiracy to misappropriate trade secrets and conspiracy to commit wire fraud. Chen, and her husband Yu Zhou, a fellow biotech researcher, were indicted in September 2019 following an extensive investigation. The indictment and plea agreement details their efforts to steal trade secrets related to exosome isolation technology, which represents a critical development in the diagnosis and treatment of pediatric diseases, including liver cancer and a condition found in premature babies.
Continue Reading Chinese Biotech Researcher Pleads Guilty to Trade Secret Misappropriation
This week, the U.S. government continued its enforcement activity against Chinese government-sponsored trade secret theft, indicting two Chinese hackers for allegedly stealing data from 25 domestic and international companies, including targeting those now researching COVID-19 testing, vaccines, and treatment. The two defendants had allegedly acquired hundreds of millions of dollars worth of trade secrets and other valuable business information across a span of nearly eleven years. This announcement follows in the wake of the indictment of Dr. Charles Lieber, a former Harvard professor, who allegedly lied about his participation in China’s “Thousand Talents Plan,” a program that has been accused of facilitating the stealing of American trade secrets. Our coverage of that indictment is here.
On Tuesday, July 21, 2020, the U.S. Department of Justice (“DOJ”) announced charges against Li Xiaoyu and Dong Jiazhi in the Eastern District of Washington, alleging that they hacked the computer networks of 13 United States and 12 international companies in industries ranging from high tech manufacturing and medical device engineering to solar energy and pharmaceuticals, all between September 2009 and July 2020. …
Continue Reading DOJ Targets Chinese Hackers for Stealing United States Trade Secrets
The trade secrets of American industries and research institutions are often the target of foreign interests, as this blog has detailed in the past. Most recently, on June 9, 2020, the U.S. Department of Justice (“DOJ”) indicted the former Chair of Harvard University’s Chemistry and Chemical Biology Department and nanoscientist, Dr. Charles Lieber, for allegedly making false statements to federal authorities about his participation in China’s “Thousand Talents Plan.” This Plan, according to a 2019 Senate report, is part of China’s “strategic plan to acquire knowledge and intellectual property from researchers, scientists, and the U.S. private sector.” Past participants in the Plan have included a former General Electric engineer, Xiaoqing Zheng, who was indicted in April 2019 for allegedly stealing GE’s trade secrets related to turbine technology while employed at GE Power & Water in Schenectady, New York.
China’s Thousand Talents Plan began in 2008 and has been a concern of the U.S. government for some time. A 2019 Senate report characterized the Plan as a danger to American national security and proprietary information and stated that it “incentivizes individuals engaged in research and development in the United States to transmit the knowledge and research they gain [in the United States] to China in exchange for salaries, research funding, lab space, and other incentives.”…
Continue Reading Harvard Professor Indicted for Allegedly Lying About Participation in Chinese Talent Recruitment Program
China’s National People’s Congress has released a draft law for comment that would impose harsher criminal penalties for any trade secret theft from Chinese companies that benefits foreign companies.
China’s current law imposes a maximum sentence of 3 years imprisonment for “serious” instances and 10 years for “particularly serious” instances of trade secret theft. The proposed law would impose harsher sentences for trade secret theft benefiting a foreign entity, resulting in 5 years for “serious” instances and a minimum of 5 years with no maximum for “particularly serious” instances. …
Continue Reading China Proposes Harsher Penalties for Trade Secret Theft in Draft Amendment