Tuesday, 04 August, 2020

U.S. charges Huawei with RACKETEERING & attempting to steal American trade secrets

U.S. Charges 5G Giant Huawei With Racketeering and IP Theft U.S. Brings New Charges Against Chinese Tech Giant Huawei
Deanna Wagner | 13 February, 2020, 23:21

The 16-count superseding indictment also adds a charge of conspiracy to steal trade secrets stemming from the China-based company's alleged long-running practice of using fraud and deception to misappropriate sophisticated technology from US counterparts.

She was previously charged together with Huawei and two Huawei affiliates - Huawei USA and Skycom - with financial fraud, money laundering, conspiracy to defraud the US, obstruction of justice, and sanctions violations in a 13-count indictment unsealed in January 2019.

Citing at least some cases that have come to light previously, the new indictment says Huawei violated confidentiality agreements, recruited rival companies' employees and used professors and other proxies at research institutions to pilfer manuals, source code and other secrets.

Huawei, one of the largest tech firms and a major telecom equipment maker, has been blacklisted by Washington amid concerns over its ties to the Chinese government and intelligence services.

The US has expanded its lawsuit against Huawei, accusing the Chinese telecoms giant of a "decades-long" plan to steal technology from US firms.

During this time, Huawei and its USA and Chinese subsidiaries purportedly misappropriated copyrighted information and trade secrets including but not limited to internet routers' manuals and software source code, as well as antenna and robot testing technology.

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According to the indictment, Huawei entered into confidentiality agreements with United States tech firms and then violated those deals.

It also contains new allegations about the company's involvement in countries subject to sanctions, such as Iran and North Korea.

Meng was arrested in Vancouver airport in December 2018, and remains on bail in Canada where she is fighting extradition to the US. It alleged, among other claims, that Huawei had lied about its relationship with Skycom, which prosecutors said was an "unofficial subsidiary" of Huawei that had assisted Iran in performing domestic surveillance, including against demonstrators in Tehran in 2009.

"As a effect of its campaign to steal this technology and intellectual property, Huawei was able to drastically cut its research and development costs and associated delays, giving the company a significant and unfair competitive advantage", said the document.

"Intellectual property theft, corporate sabotage, and market manipulation are part of Huawei's core ethos and reflected in every aspect of how it conducts business".