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US Accuses Huawei of Stealing Trade Secrets, Defrauding Banks (bloomberg.com)

An anonymous reader quotes a report from Bloomberg: U.S. prosecutors filed criminal charges against Huawei, China's largest smartphone maker, alleging it stole trade secrets from an American rival and committed bank fraud by violating sanctions against doing business with Iran. Huawei has been the target of a broad U.S. crackdown, including allegations it sold telecommunications equipment that could be used by the China's Communist Party for spying. The charges filed Monday also mark an escalation of tensions between the world's two largest economies, which are mired in a trade war that has roiled markets. In a 13-count indictment in Brooklyn, New York, the government alleged Huawei, two affiliated companies and its chief financial officer of fraud and conspiracy in connection with deals in Iran. A 10-count indictment in Washington state accused the company of stealing trade secrets from T-Mobile and offering bonuses to employees who succeeded in getting technology from rivals.

T-Mobile sued Huawei and its U.S.-based unit, Huawei Device USA Inc., in 2014, and three years later, a federal jury in Seattle found Huawei liable for both breach of contract and misappropriation of trade secrets. A person familiar with the case, who sought anonymity because they weren't authorized to speak, said T-Mobile's claims regarding the theft of its technology caught the attention of federal authorities in the Western District of Washington. T-Mobile said Huawei sent its engineers to T-Mobile's Bellevue, Washington, facility to see a robot, called "Tappy," which simulates smartphone use. T-Mobile said in its lawsuit that Huawei was able to use stolen parts from the robot to "develop, improve and troubleshoot its own robot."
Separately, Huawei CFO Meng Wanzhou was arrested in Canada on allegations that she committed fraud to sidestep sanctions against Iran. "The U.S., which had requested Canadian authorities arrest Meng, must submit a formal extradition request for her by Jan. 30," Bloomberg reports. "Canada's justice minister then has up to 30 days to assess it. If she issues an 'authority to proceed,' that means Canada is officially moving to extradition hearings. If so, they would likely be scheduled months later."

4 of 98 comments (clear)

  1. Cisco equipment with NSA addons by thesjaakspoiler · · Score: 5, Informative

    I do recall that the NSA was intercepting Cisco hardware to install backdoors on those systems. https://arstechnica.com/tech-p... Obama was all about change so that is maybe why he didn't make a big deal out of those NSA changes.

  2. Re:Chicom company by Jzanu · · Score: 4, Informative

    You mean this ?

    "As part of an international agreement on the Iranian nuclear programme, the Joint Comprehensive Plan of Action (JCPOA) of 14 July 2015, the UNSC adopted unanimously resolution 2231 on 20 July 2015. It stipulates it will change the UN sanctions on Iran as soon as the International Atomic Energy Agency (IAEA) provides a report to the UNSC which conforms that Iran has taken the actions related to its nuclear programme specified in the JCPOA. From the JCPOA Adoption Day, which occurred on 18 october 2015, the provisions related to restrictions on the export from and transfer to Iran of conventional weapons or related goods and services are no longer blanket embargoes.

    Instead the Security Council decides on a case-by-case basis whether to permit the transfer of goods and technology that could contribute to the development of nuclear weapon delivery systems based on the inclusion of appropriate end-user guarantees and Iran committing not to use such items for nuclear weapon delivery systems. This provision will be lifted 8 years after the JCPOA Adoption Day, i.e. on 18 october 2023."

  3. How one can "steal" IP when under an NDA? by hackingbear · · Score: 3, Informative

    And how can one file criminal charge when the claim cannot pass a civil suit?

    "According to the jury’s verdict, T-Mobile was not awarded any damages relating to the trade secrets claim and there was no award of punitive damages. Although the jury awarded damages under the breach of contract allegation, the amount was a small fraction of what T-Mobile requested. Huawei is a global leader in innovation, and respect for intellectual property is a cornerstone value in our business,” Huawei said in a statement after the verdict in 2017.

  4. Re:FAILURE TO COMPETE by AmiMoJo · · Score: 4, Informative

    The charges don't make any sense. The claim that they tried to steal a robot from T-Mobile called "Tappy". T-Mobile didn't build it though, it's an off-the-shelf Epson robot with some basic programming.

    https://www.youtube.com/watch?...
    http://web.archive.org/web/201...

    It seems extremely unlikely that Huawei would bother steal something that they could just buy and get an undergrad to program for them. All i does is press some buttons in sequence over and over to see how long they take to fail. Some simple calibration for pressure to simulate a heavy handed user is all you need.

    Huawei didn't steal 5G tech, it invented it. Its patents cover the modulation schemes, the bandwidth allocation and spectrum sharing, the power management that minimizes interference and maximizes battery life. If those things were stolen then they would have been patented elsewhere, or the patents challenged. It's original technology that China developed.

    --
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