Taiwan: Ex-employees of optoelectronic device caught selling trade secrets to China

Taiwan Police have opened a probe into two ex-employees of a Kaohsiung based optoelectronic device maker for allegedly stealing trade secrets and selling them to China.

On Friday, the National Police Agency confirmed the news stating that they received tip-offs about the theft back in March from the company’s Chief Executive who discovered that confidential material was being stolen. As they started investigating, they found that two former employees at the Kaohsiung Science Park had made NT dollar 10 million (Rs 26.7 million) from selling confidential information, Taipei Times reported.

Trade secrets and proprietary material sold to Chinese salesman

According to the police officials, they along with the Criminal Investigation Bureau conducted several raids throughout September and earlier in November. Their search lead them to evidence indicating that a woman with the surname Wang and a man surnamed Chen had sold trade secrets and other proprietary material to a Chinese salesman who further passed it to buyers across the Chinese mainland and Taiwan.

Notably, analyses of the firm’s computer systems revealed that both the ex-employees had downloaded sensitive material for years until August when Chen quit his job. Wang, who was the co-founder of the unnamed company, had resigned earlier.

Product design, testing procedures stolen

Amongst the stolen material was product designs, system analyses, testing procedures, parts purchasing databases and other confidential files, Taipei Times reported, citing investigators involved in the case. Earlier this month, Wang was put into judicial custody under restricted communication while Chen who was detained alongside was released on a conditioned bail of NT dollar 60,000 (Rs 1,60,478).

Apple trade secrets sold in US 

Trade secrets are sold at astronomical prices in the market. A similar case of theft was registered in the US. Back in March, Apple filed a lawsuit against Simon Lancaster, who worked as a materials lead, for stealing private trade secrets about one of the company's projects and then leaking them to the media.

Now, as a second proceeding in the lawsuit filed by Apple is scheduled for 18 November 2021, Lancaster has at least four search warrants executed by the State in respect to online accounts and information on two computers used by the former Apple employee. As mentioned by a report by 9To5Mac, the search warrants are based on the cause that "the information sought was stolen or embezzled, or evidences the commission of a felony."

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