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US Levels Espionage Charges Against 6 Chinese Nationals
Taco Cowboy writes: The U.S. government has indicted five Chinese citizens and arrested a Chinese professor on charges of economic espionage. The government alleges that they took jobs at two small, American chipmakers — Avago Technologies and Skyworks Solutions — in order to steal microelectronics designs. "All of them worked, the indictment contends, to steal trade secrets for a type of chip popularly known as a “filter” that is used for acoustics in mobile telephones, among other purposes. They took the technology back to Tianjin University, created a joint venture company with the university to produce the chips, and soon were selling them to both the Chinese military and to commercial customers."
It's interesting to note that the Reuters article keeps mentioning how this technology — used commonly as an acoustic filter — has "military applications." It's also interesting to look at another recent case involving Shirrey Chen, a hydrologist who was mysteriously arrested on suspicion of espionage, but then abruptly cleared five months later. One can't help but wonder what's driving the U.S.'s new strategy for tackling economic espionage.
It's interesting to note that the Reuters article keeps mentioning how this technology — used commonly as an acoustic filter — has "military applications." It's also interesting to look at another recent case involving Shirrey Chen, a hydrologist who was mysteriously arrested on suspicion of espionage, but then abruptly cleared five months later. One can't help but wonder what's driving the U.S.'s new strategy for tackling economic espionage.
Perhaps they've studied the SEC, and are now realising that a shakedown racket pays far better than justice?
I'd like to charge the U.S. government with economic espionage, unlawful mass surveillance and crimes against humanity.
I'm waiting for the German government to have the balls to level espionage charges against... its own secret service BND and the NSA!
I'm not holding my breath, though. Corrupt assholes.
Slash the number of China's student VISAs, watch the problems with China disappear.
Yes but what about when it's the US that pulls this kind of espionage? Oh right, they're the good guys.
Using the same logic Wernher von Braun should have been arrested, charged and sentences for espionage when he learn rocket making secrets, financed by one type of government, and soon was contributing to the manufacturing of rocket devices in USA.
You know, rocket devices have huge economic potential, as well as potential military applications.
You can bet that Germany can present enough evidence and collect serious royalties for USA, including late fees, for all the benefits and gains attributable to von Braun's inventions.
Back when I learned about this stuff, companies basically had two options to protect their technology: patents and trade secrets.
- If you file for a patent, the theory is that you tell the whole world how it works, but get the exclusive right to produce it yourself, or license it to others. Yes, the patent system has problems, but that's theory. This is supposed to help technology advance, because you can build on other people's work.
- If you go with a trade secret (think: the secret recipe for Coca Cola), that means that you don't want to publish the information, so you receive no protection from the government. Protecting the secret is up to you; if someone steals it, that's your problem. This lack of protection is deliberate, providing motivation for filing patents and publishing information.
What I didn't know is that in 1996, the government passed the Economic Espionage Act. This essentially grants government protection to trade secrets, not only by criminalizing their theft (but that is likely a criminal act anyway), but also by criminalizing the use of the trade secrets by another company.
Of course, the act also explicitly exempts the government; the government can spy on you as much as it wants.
The act also funds the Boys and Girls Clubs of America. You've gotta admire the US Congress - they never miss an opportunity to include pork.
Enjoy life! This is not a dress rehearsal.
For every one they catch, there are 1000 they don't.
It's widely considered that industrial theft is so rampant that any US technology biotech company of any size is having its trade secrets walked out the door headed for China.
But then, the US does it to other countries to, so turnabout is fair play, hmm? You don't get to have it both ways.
Companies really like Chinese engineers. Many are highly degreed, many of those are highly educated, they work hard and they're cheap. Only a few are going to steal IP. If a dedicated Chinese engineer has family back in China there's no way to know what kind of pressure the Chinese govt is going to apply, and, IMHO, it's all about the Chinese govt. Ya pays yer money, ya takes yer chances. I would like to encourage Apple to hire lots of H1Bs from SE Asia.
The Russians have won. They have made the world a cesspool of distrust, greed, fear and hate.
'...article keeps mentioning how this technology â" used commonly as an acoustic filter â" has "military applications."'
Sure. Soldiers communicate. So do civilians. A soldier has to shit too. I guess if they were stealing the recipee for Charmin that would also be military secrets.
Only a few steal IP at a time because that's all they need at any time. If you boot the ones who are stealing now, the PLA will just move on to the next name on their lost.
in the early 80's my uni had a bakers dozen (13) of Chinese visiting researchers. only 12 of them turned out to be spies. one went on to create knock-offs of a million dollar, world leading, research technology. another still works in the US! 6 is a drop in the bucket - a serious embarassment that capturing this tiny fraction of spies is not a measure of success - it is an admission of failure
I have no problem with going after people who steal trade secrets, anything more than I have a problem with going after people who steal nuclear secrets. The only thing is that the FBI has a long history of racist paranoia about Chinese scientists, from Quan Xuesen in the early 50s to Wen Ho Lee in the 90s.
Rhwew may well of a legitimate case against these guys and if they do I hope they nail the bastards. But I'm not jumping to any conclusions based on FBI say-so.
Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
Wall Street Journal:
U.S. Charges Five in Chinese Army With Hacking
http://www.wsj.com/articles/SB10001424052702304422704579571604060696532
Not as if there is any risk in hiring foreign nations. Absolutely no chance that our trade secrets are going to go to countries that do not respect our laws, and may be hostile to our interests, and already have a near monopoly on our manufacturing.
I wonder if this is a byproduct of the general corporate tendency to look at "innovation" as a way to get a patent which is then used to enforce a monopoly and collect rents. Collecting rents is a disincentive towards more innovation, product improvements and other business efficiencies. Why compete when you can just charge rents?
If there wasn't a patent-and-monopoly mindset, perhaps there would be greater effort put into innovation as a means to more rapidly improve products (as well as a focus on other business efficiencies). If somebody "stole" your IP in this model, it would matter less because your pace of innovation may render the stolen IP retrograde by the time it was turned into useful products, and your sales would be driven by the strength of your products not because you had a legalized monopoly.
They outsource it
The grass is always greener on the other side of the light cone.
"two small, American chipmakers — Avago Technologies and Skyworks Solutions"
Avago has a market cap over 30 billion, and Skyworks is almost a 20 billion dollar company. They're not exactly garage start-ups, and everyone in the RF world recognizes them as being quite big players.
Chinese requires a visa at aminimum of $130. This was in reaponse to the visa increase by the US after 9-11.
"A thief believes everybody steals." -- E. W. Howe
Why would Apple want to "takes yer chances"? Pretty sure Apple is doing quite well, and doesn't need to take risks with Chinese theft. They deal with that enough already.
There are American chip makers? With physical factories in the US? I actually don't believe it.
As one that has dealt with one Chinese spy , and potentially, another one, it is obvious that China is hard at work stealing as much tech as they can. Sadly, our clearance methods were compromised by privatizing them. We should give it back to FBI, along with ICE. There are far far too many chinese spies in the west.
I prefer the "u" in honour as it seems to be missing these days.
The impact of actions like this is many many many times greater than any impact from the stupid waste on spying on Americans for the War on Terror.
The only spying that has worked has been that actually done in Saudi Arabia, Pakistan and other real threats.
So, about time.
-- Tigger warning: This post may contain tiggers! --
Apple and, to be fair, Google & others, want cheaper workers. That's ok. They want to keep costs down. Shareholders agree. They want to artifically control the labor market. That's less ok. They should realize the short-term costs (fines) and longer-term costs (loss of IP). http://www.inc.com/associated-...
The Russians have won. They have made the world a cesspool of distrust, greed, fear and hate.