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18 Months In Prison For Making iPad 2 Cases

decora writes "Loretta Chao of the The Wall Street Journal reports on three people in China who were sentenced to between 12 and 18 months in prison for a plot to make iPad 2 protective cases before the tablet's official release. The plan allegedly involved R&D man Lin Kecheng of Hon Hai Precision Industry Company (FoxConn) selling image data to Hou Pengna, who then passed it to Xiao Chengsong, a manager at MacTop. The charges? One 'violated the privacy policy of the company,' two got information through 'illegal means' causing 'huge losses,' and they all 'infringed trade secrets.' The decision was handed down by the Shenzen Baoan People's Court on June 16."

40 of 285 comments (clear)

  1. Bribe Fine by rtb61 · · Score: 4, Insightful

    !8 months prison for failure to pay the appropriate bribe.

    --
    Chaos - everything, everywhere, everywhen
    1. Re:Bribe Fine by Lisias · · Score: 2

      Palocci?
        É você?(It's you?)

      --
      Lisias@Earth.SolarSystem.OrionArm.MilkyWay.Local.Virgo.Universe.org
    2. Re:Bribe Fine by vivian · · Score: 2

      That's what happens when you cross business interests in a fascist state.

    3. Re:Bribe Fine by KiloByte · · Score: 4, Insightful

      You mean, communism was EVER about "protecting workers rights"? Uhm sorry but this myth has been dispelled in November 1917.

      If you, unlike me, were lucky enough to not live in a communist country and didn't have half of the family murdered for, say, having a title "senior worker"[1], please read Animal Farm or 1984, these are pretty accurate descriptions.

      [1]. An uncle of my grandfather, an uneducated factory worker, was promoted to "senior worker" which was for people with no formal training but with work experience who proven they have a clue how to do their job. That was enough to be labelled "an agent of the bourgeoisie" and be taken away by the DHS^H^H^H UB never to be seen again.

      --
      The creatures outside looked from Alt-Right to Antifa; but already it was impossible to say which was which.
    4. Re:Bribe Fine by mikael_j · · Score: 2, Insightful

      You mean, communism was EVER about "protecting workers rights"? Uhm sorry but this myth has been dispelled in November 1917.

      You should probably take a look at what communism is, as in, the proper definition of communism, not the attempts at practical implementations of derivatives (leninism, stalinism, maoism et al).

      If you, unlike me, were lucky enough to not live in a communist country and didn't have half of the family murdered for, say, having a title "senior worker"[1], please read Animal Farm or 1984, these are pretty accurate descriptions.

      That doesn't really sound like communism to me. Besides, Animal Farm was not a critique of the ideology, it was a critique of the aforementioned implementations and their totalitarianism, Orwell himself was a socialist.

      --
      Greylisting is to SMTP as NAT is to IPv4
    5. Re:Bribe Fine by Ritz_Just_Ritz · · Score: 2

      That is absolutely the case. The "wheels of justice" in China only turn that quickly if you've run afoul of a well connected (government cadre) earner. Given the size of Foxconn and the amount of money involved, it's got to be someone (or a number of people) VERY high up in the CCP food chain....hence the harsh and fast sentence.

      Anyone making this out as some attempt at enforcing IP laws is kidding themselves.

    6. Re:Bribe Fine by Cockatrice_hunter · · Score: 2

      The guy committed an actual crime. In fact, I'm sure he'd be punished in the states had he done a similar thing here. Or were you saying that he could have gotten away if he'd paid a fine?

    7. Re:Bribe Fine by TheRaven64 · · Score: 4, Insightful

      No one has ever successfully implemented a communist society with more than about 50 members. It's a nice idea, but it doesn't scale, except possibly in a post-scarcity society.

      --
      I am TheRaven on Soylent News
    8. Re:Bribe Fine by PopeRatzo · · Score: 2

      The "wheels of justice" in China only turn that quickly if you've run afoul of a well connected (government cadre) earner.

      Here in the US, the only turn that quickly if your skin happens to be an unfortunate shade.

      Right here in Illinois in fact, if you happen to be that unfortunate shade and are caught with non-Pharma-approved drugs, you are 500 percent more likely to do jail time then your more pale counterpart.

      --
      You are welcome on my lawn.
    9. Re:Bribe Fine by rjstanford · · Score: 2

      18 months in prison for corporate espionage. In the US, the penalty can run up to $500,000 and 15 years imprisonment for individuals, $10,000,000 for corporations. Why do you think this has something to do with China being bad? Or with commerce being corrupt? The idea behind these penalties was, believe it or not, to reduce corrupt business deals.

      --
      You're special forces then? That's great! I just love your olympics!
    10. Re:Bribe Fine by silanea · · Score: 2

      Yes and no. Communism is like a completely secure operating system: Awesome in theory, virtually impossible to implement if the outcome should still be usable in the real world with real people. That does not make it a bad idea to try to build a secure OS. The issue lies in how much and in what way you implement security. So far any attempt to build a secure OS that is still usable in day-to-day work has failed miserably, but each such failure has given insight into why its particular way failed, so that others can avoid its mistakes and implement those parts that did work. The difference is that so far the failed attempts at building the OS have cost much less lives.

      --
      Rudolf Hess edited Mein Kampf. He was the very first grammar nazi.
    11. Re:Bribe Fine by Nidi62 · · Score: 2

      Or were you saying that he could have gotten away if he'd paid a fine?

      No, he's saying that, had these guys paid the appropriate bribes to the appropriate people, they would have been fine. Remember, a lot of what China produces for domestic consumption has been acquired through "illegal means".

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
    12. Re:Bribe Fine by tehcyder · · Score: 2

      You mean, communism was EVER about "protecting workers rights"? Uhm sorry but this myth has been dispelled in November 1917. You should probably take a look at what communism is, as in, the proper definition of communism, not the attempts at practical implementations of derivatives (leninism, stalinism, maoism et al).

      There were around 100 or so implementations of communism. If every single of them was "not the TRUE communism", perhaps there's something wrong with the ideology?

      The main problem, from the French Revolutionaries of the Eighteenth Century onwards, has been the implacable hostility ofthe outside world towards regimes which espouse communist ideals. This inevitably leads to a deteriorating spiral into paranoia (because everyone is out to get you). If, to choose a popular example here, the US had just left Cuba the fuck alone and allowed it to trade normally with the rest of the world, it would have turned out a different place.

      --
      To have a right to do a thing is not at all the same as to be right in doing it
  2. Re:nothing new by Rakishi · · Score: 2

    The US has been a consumerist society for decades and decades. People have been saying it will ruin us all for just as long.

    One thing you learn from reading old science fiction is that "modern" problems are anything but modern.

  3. Not quite. by Narcogen · · Score: 5, Insightful

    This is not China taking IP seriously as a matter of principle.

    This is China taking the needs of Foxconn seriously, and in this case, Foxconn's need is to demonstrate to its clients that it can be trusted with their sensitive commercial materials, such as the specifications of as-yet-unreleased products.

    1. Re:Not quite. by second_coming · · Score: 3, Funny

      The motivation being, if they don't crack down on it then big business will pull out of China and go somewhere more 'trustworthy'. The likelihood is lots of foreign business will pull out of China over the next few years anyway due to the huge increase in production (ie. wage) costs.

    2. Re:Not quite. by martyros · · Score: 4, Interesting

      This is China taking the needs of Foxconn seriously

      From the summary, I don't see anything particularly wrong with this decision. One company gained an unfair advantage over its competition by engaging in illegal industrial espionage. If the problem is selective prosecution, then surely the solution is to complain about others who are not prosecuted for espionage, rather than to complain about those who are prosecuted?

      --

      TCP: Why the Internet is full of SYN.

  4. Re:nothing new by X.25 · · Score: 2

    The US has been a consumerist society for decades and decades. People have been saying it will ruin us all for just as long.

    Well, it did ruin you.

    Hopefully, you see/realize that.

  5. Industrial espionage by Alioth · · Score: 4, Interesting

    When I lived in the United States, one of our contractors was arrested and sent to prison for industrial espionage (I think the charges were probably mail fraud and the like). He was trying to sell our source code to a competitor, the competitor called the feds, and the feds set up a sting operation while the competitor "played along" as if it were going to pay him for our source code.

    They arrested two of our people (both contractors), one was quickly let off though because it turned out he had been duped by his "friend" into lending him a mailbox for a supposedly innocent purpose (the mailbox was to be where the payment would be delivered). I don't remember what was handed down to the guilty person in the end other than it involved some jail time.

  6. Re:nothing new by Hazel+Bergeron · · Score: 4, Insightful

    It has ruined you. If you're posting on /. as an educated geek with a good job and a comfortable life then you are one of the few winners of the system. Most of the West is miserable with no voice loud enough to be heard.

    The media in every regime give the impression that almost everyone is content with that regime, from the US through the USSR all the way to DPRK. Spend time providing help to or even stopping to have a conversation with the homeless, the chronically sick, the nonviolent prisoner. Then move on to the non-smart - it sounds mean, but half the population are intellectually below average and likely have extremely limited opportunity for it. You'll find that people are struggling and miserable. Not yet at the stage of mass consciousness and disloyalty, but that's yet to come.

    I'd summarise our problem in three words: reliance on corporation. We suck at supporting ourselves for our own sake, whether that means individually or at a community / region / national level. Since the '50s local community has deteriorated, and since the '80s we've lost a sense of national community. We're now stuck in this utterly false mindset that the only way to get anything done is to throw money at some magnificent private company to do badly what we've lost the power to do ourselves. Need to talk to someone? Your voice and a knock on the door is no longer good enough. Nor a letter. Nor building your own radio set. Nor even an open access Internet. No, that all requires too much thinking. Now you're tempted to get a shiny ready-made throwaway toy built at a cost which could only be achieved by choosing abused labour in an oppressive country.

    In short, we're lazy and we suck. We so far following the progress of every other civilisation (read the original, check out how well he'd predicted the next half-decade through analysis of other civilisations, and identify where the West is now) into destruction.

  7. Re:Wait... by RivenAleem · · Score: 2

    I can see the headlines now:

    "We only leaked the OS Source Code so that people could make better apps" while trying to justify how there's precedent existing for the making of cases.

    Apple did not comment, so we don't know who brought the charges, it would seem that Foxconn found out that employees were leaking confidential information, for which they surely signed non-disclosure agreements, for the purpose of lining a friends pockets with money, by being the first company on the market with covers available.

    I don't think that this so much affects Apple directly in any way, more so it's a straight forward case of stealing information to give your friends an unfair advantage. Likely Apple had it's own contract with a specific manufacturer to give them the specs of the unit to make cases for them. If they _don't_ prosecute these people then their contractor feels that their exclusive deal with Apple, which they may have bidded for, is not so exclusive anymore.

  8. What's with the trolling, slashdot? by YesIAmAScript · · Score: 5, Insightful

    These guys engaged in industrial espionage, pure and simple.

    Why make it out like they are victims?

    They didn't get time in prison for making iPad 2 cases, but instead for stealing the secrets necessary to make them before the iPad 2 even came out.

    --
    http://lkml.org/lkml/2005/8/20/95
    1. Re:What's with the trolling, slashdot? by dbIII · · Score: 2

      Go ask some of them, especially Koch, about their ideas on law and order. "Might makes right" sums it up in three words. "Small Government" in many cases is just shorthand for no rule of law.

    2. Re:What's with the trolling, slashdot? by SunTzuWarmaster · · Score: 3, Insightful

      Would you suggest a fine? If the punishment is fining, it simply becomes part of the cost of doing business (each business dos a cost vs. benefit for breaking the law, based on financial incentives and disincentives). In America, this comes with a 24-month sentence, and Australia is up to 15 years, so it isn't entirely out of line with what other parts of the world do.

    3. Re:What's with the trolling, slashdot? by flimflammer · · Score: 2

      Do you know what trade secrets are and how misappropriating them is looked at by law?

      Here in the States, it's a federal crime, regardless of who the victim is. It's probably similar in China, and when we're talking about a victim like Foxconn, the government is going to make an example out of these people.

      Whether or not you feel doing things to a corporation should not be anything but a civil matter, there are catches and they're not necessarily out of line.

    4. Re:What's with the trolling, slashdot? by gr8_phk · · Score: 2

      These guys engaged in industrial espionage, pure and simple.

      One 'violated the privacy policy of the company,' two got information through 'illegal means' causing 'huge losses,' and they all 'infringed trade secrets.'

      Violating company "privacy policy" is not industrial espionage, nor should it be a criminal matter. Getting the information through illegal means is. Causing "huge loesse" through competition... Hmm did they actually sell any? before the product launched (i.e. the could have designed it anyway)? I'll give you the industrial espionage, but that's not what they were charged with. Or maybe it was just lost in translation.

  9. Re:nothing new by icebraining · · Score: 5, Interesting

    We're now stuck in this utterly false mindset that the only way to get anything done is to throw money at some magnificent private company to do badly what we've lost the power to do ourselves. Need to talk to someone? Your voice and a knock on the door is no longer good enough. Nor a letter. Nor building your own radio set. Nor even an open access Internet. No, that all requires too much thinking. Now you're tempted to get a shiny ready-made throwaway toy built at a cost which could only be achieved by choosing abused labour in an oppressive country.

    Oh please. Even letters were always dependent on some organization to deliver them. Ditto for the "open Internet". And the majority of people never built their own radio set.
    People didn't change, technology did.

    And that abused labour has seen their wages raise in the double digits per year. If it wasn't for their manufacturing, they'd still live in an oppressive country, but living in even worse conditions.

  10. Only One Guy Got 18 There Were Also Monetary Fines by eldavojohn · · Score: 5, Informative
    From my submission last week:

    "Almost two months ago three individuals were charged with selling the designs of Apple's latest tablet to Maita Electronics for 200,000 yuan (about $30,857.60 USD). They have now been sentenced in Shenzhen City: 'Xiao Chengsong, the legal agent of Maita Electronics, to 18 months in prison and fined him 150,000 yuan ($23,000) for buying the design from two Foxconn workers ... Foxconn employee Lin Kecheng, was sentenced to 14 months and fined 100,000 yuan, while another worker identified as Hou Pengna was given a two-year sentence suspended for one year and fined 30,000 yuan. All three were convicted of the crime of violating commercial secrets.'"

    And only one was sentenced to 18 months ... unless the associated press article I quoted was wrong.

    --
    My work here is dung.
  11. Re:nothing new by caramuru · · Score: 2

    Half the population is below the median, Hazel. It is below the average if and only if intelligence is normally distributed. So, while you condescend the lower half of the population, get your statistics right.

  12. You would get a similar results in the US by Edmund+Blackadder · · Score: 2

    I am not surprised and if this happened in the US, there could be similar punishments. Industrial espionage is a criminal offense in the US as well, although I am not sure what the punishment terms are.

    1. Re:You would get a similar results in the US by fnj · · Score: 3, Informative

      Would you like your oppression with pickles or with mayonnaise? It's probably a similar corrupt corporatocracy situation in many parts of the world, with actions which should be dealt with in civil court criminalized. In the US, The Economic Espionage Act of 1996 brought us (among other insults) US Code Title 18, Part 1, Section 1832, which criminalizes such acts, stating that anyone who steals, or receives or possesses or uses without authorization, a trade secret, or merely ATTEMPTS same, shall be fined, or imprisoned up to 10 years, or both. The fine is limited to $5 million for an organization, but is WITHOUT ANY STATED LIMIT for an individual.

      Section 1831 deals with basically the same offenses "to benefit a foreign power," which means that section 1832, giving the lie to the name of the bill, has nothing to do with true espionage.

      This wonderful legislation, like the DMCA, was brought to you by a cooperation between tweedledee Democrats and tweedledum Republicans in Congress and the White House.

    2. Re:You would get a similar results in the US by jklovanc · · Score: 2

      How is punishment for theft of trade secrets oppression? How is theft of a trade secret any different from theft of manufactured goods? Money went into creating those trade secrets. Trade secrets have a monetary value and are bought and sold every day. Should car theft be handled in civil court? Theft is still theft be it information or goods. Why should attempts be exempt from the law? Even if an attempt failed the intent to commit the act was still there. No one should get off the hook because they are a poor thief; they are still a thief.

      Take this scenario. Company A spends money researching to create trade secrets for a new product. Company B steals those secrets and, due to $0 R&D costs, sells the item for less than company A. Company A never recoups the R&D costs and loses money on the project. Do you think that will help bring new products to market? Do you think company B should be convicted of a crime just the same as as they would if they stole product coming off an assembly line? I sure do.

      Chapter 90 is Protection of Trade Secrets 1831 is "economic espionage" because it is by or on the behest of a foreign government. There is military espionage, political espionage and economic espionage with the key component being the involvement of a foreign government. 1832 is "theft of trade secrets" by companies and or individuals and is not called espionage. They are separate sections dealing with separate crimes.

      The lack of limit of the fine for individuals under 1832 is probably an oversight and would therefore be decided by a judge or jury governed by past fines due to common law. Corporate limits are more so that overzealous juries do not get out of hand. Juries can identify more with a person than they can with a corporation and therefore go easier on people.

  13. Re:apple should intervene. by jklovanc · · Score: 2

    Eighteen months for stealing thousands of dollars worth of information so someone can make tens if not hundreds of thousands of dollars in profit is not overkill in my book at all. Apple is probably selling the specs for the case to manufacturers of covers. This one decided to steal the information rather than buy it.

    What would you have suggested as a sentence?

  14. Re:apple should intervene. by ScentCone · · Score: 2

    It's theft of something very valuable. Just like when you decide to steal cash, or someone's car, etc, that's also worth thousands of dollars. Prison is the right thing to do with people who think it's cool to put a bunch of money in their own pocket by violating someone else's privacy and carefully held secrets under the circumstances like those involved in this story.

    --
    Don't disappoint your bird dog. Go to the range.
  15. Re:a little understanding? by mikael_j · · Score: 2, Insightful

    It's not nitpicking, he was using his claimed personal experience with a corrupt and flawed regime that in turn claimed to be based on an ideology to back up his claim that the ideology at hand represents those things which the regime represented even though it is common knowledge that the ideology does not represent these things.

    --
    Greylisting is to SMTP as NAT is to IPv4
  16. Re:Wait... by TheRaven64 · · Score: 2

    Yes, it's probably a good thing, but were they the only people who got access to the trade secrets? Once they'd got the dimensions, did they also let Samsung know, for example? If so, then that would have been very useful information to the team designing their next tablet: they would know the dimensions that they had to beat and, since they knew roughly what the specs were already from what chips they were selling Apple, they'd know exactly what hardware their chief competitor was about to ship.

    --
    I am TheRaven on Soylent News
  17. Re:a little understanding? by thej1nx · · Score: 2, Insightful

    Name one instance where the said ideology has ever been managed to be implemented, without the totalitarianism/fascism.

    Looks like a duck, walks like a duck, talks like a duck = has to be a duck.

    People are essentially people. You cannot get them to voluntarily give up what they perceive as "theirs", without resorting to force/totalitarianism eventually, which in turn eventually, degrades to an authoritarian/fascist state. It has never worked even once in history.

  18. Re:a little understanding? by zwei2stein · · Score: 2, Insightful

    And this "ideology" was proven again and again to lead to corrupt and flawed regimes.

    Because it is just another tool to fool masses and get to the top. It was never supposed to be more than propaganda piece that plays on human greed and envy.

    --
    -- Technology for the sake of technology is as pathetic as eschewing technology because it's technology.
  19. BAD REPORTING by jellomizer · · Score: 2

    I wish they would stop with these yellow journalism stupid heading that are just wrong.

    No they didn't go to prison because they made a case for the iPad, They went to prison for stealing IP secrets.

    Here is a better headline "3 Chinese sentence 18 months for stealing iPad specs before released"

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.
  20. Re:a little understanding? by Xyrus · · Score: 3, Insightful

    Every single form of government can (and at some point does) lead to totalitarianism. Ideologies are perfect. Humans are not. So no matter what form of government is implemented it eventually corrodes under the human tide of greed and corruption.

    Communism fails in practice (on a large scale) because it goes against human nature. Humans are not nice, altruistic beings. It takes an iron fist to make humans in general conform to any system like communism. This leads to communism having a very short lifespan before the system corrupts.

    At the same time, democracy is not a magic shield against this either. A rather stark example is Nazi Germany, which went from a democracy to authoritarian dictatorship in just a handful of years.

    All it takes is apathy and/or fear to slide a government into authoritarianism. Concentrate wealth and power at the top and you have a perfect setup for stripping away freedom and rights. Get enough talking heads and charismatic people on your side, and you'll even have the people you're screwing over help you attain your goals.

    --
    ~X~