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5 June 2019

Trial begins in Huawei trade secrets theft case against former employee

A lawsuit brought by Huawei against a former employee who allegedly stole trade secrets is underway in the US.

On Monday, June 3, jury selection began at the US District Court for the Eastern District of Texas after Huawei accused Ronnie Huang of corporate espionage and racketeering.

According to Reuters, the trial is expected to last three weeks. It will be judged by Amaos Mazzant, who is also presiding over Huawei’s bid to overturn the Trump administration’s ban on its sales to government agencies and contractors.

Huawei first filed a complaint against Huang in 2017, claiming Huang stole the company’s trade secrets and technology, and poached its staff to create his electronics startup, CNEX Labs. CNEX develops semiconductors that speed up data storage on cloud computing networks.

Huang denied infringement and filed a countersuit, as reported by WIPR, claiming that Huawei is using the litigation to acquire his technology and quash rivals.

According to Huang’s suit, a Huawei official posed as a potential buyer and used ties to a Chinese university to gain access to CNEX designs.

Additionally, Huang claimed Huawei rewarded its staff for stealing its competitor’s trade secrets and stores the technology in a secret database.

Huawei is seeking damages, royalties, and rights to approximately 30 trade secrets and CNEX patents, according to its original complaint.

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10 May 2019   American semiconductor company CNEX Labs has accused Huawei of recruiting a Chinese professor to help steal trade secrets.