US Gov't Indicts Huawei for Stealing Trade Secrets from T-Mobile

[cdmagurus.com]

The US government is pursuing a criminal case against Huawei for stealing the design for — as well as actual parts and software from — a unique phone-testing robot developed by T-Mobile USA. The gov't alleges that Huawei offered bonuses for employees to steal such trade secrets, and obstructed justice in a related civil case. A Seattle grand jury returned a 10-count indictment for theft of trade secrets conspiracy, attempted theft of trade secrets, seven counts of wire fraud, and one count of obstruction of justice. The robot in question is called "Tappy" and simulates human fingers activating a set of actions on a phone being tested. The theft occurred in 2012 and 2013. T-Mobile pursued a civil case against Huawei in 2014 and in 2017 a jury awarded T-Mobile $4.8 for Huawei's breach of contract. In the civil case, T-Mobile alleged that Huawei employees authorized to use Tappy snuck another, unauthorized Huawei employee into T-Mobile's labs to photograph Tappy. A Huawei employee also stole one of Tappy's "fingers" and copied some of its software. T-Mobile provided surveillance photos to back its claims, and Huawei admitted to several of the allegations. Under the maximum sentencing provisions applicable to corporate entities, Conspiracy and Attempt to Commit Trade Secret Theft are punishable by a fine of up to $5,000,000 or three times the value of the stolen trade secret, whichever is greater. Wire Fraud and Obstruction of Justice are punishable by a fine of up to $500,000.


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