Huawei's Efforts To Steal Apple Trade Secrets Include Employee Bonus Program and Other Dubious Tactics: Report (macrumors.com)
In a report published Monday, The Information [paywalled] has detailed tactics used by China's Huawei to steal Apple's trade secrets. These tactics include Huawei engineers appealing to Apple's third-party manufacturers and suppliers with promises of big orders, but instead using the opportunity to pry on processes specific to iPhone-maker's component production. From a report: According to today's report, a Huawei engineer in charge of the company's smartwatch project tracked down a supplier that makes the heart rate sensor for the Apple Watch. The Huawei engineer arranged a meeting, suggesting he was offering the supplier a lucrative manufacturing contract, but during the meeting his main intent was questioning the supplier about the Apple Watch. The Huawei engineer attended the supplier meeting with four Huawei researchers in tow. The Huawei team spent the next hour and a half pressing the supplier for details about the Apple Watch, the executive said. "They were trying their luck, but we wouldn't tell them anything," the executive said. After that, Huawei went silent.
This event reportedly reflects "a pattern of dubious tactics" performed by Huawei to obtain technology from rivals, particularly Apple's China-based suppliers. According to a Huawei spokesperson the company has not been in the wrong: "In conducting research and development, Huawei employees must search and use publicly available information and respect third-party intellectual property per our business-conduct guidelines." According to the U.S. Justice Department, Huawei is said to have a formal program that rewards employees for stealing information, including bonuses that increase based on the confidential value of the information gathered.
This event reportedly reflects "a pattern of dubious tactics" performed by Huawei to obtain technology from rivals, particularly Apple's China-based suppliers. According to a Huawei spokesperson the company has not been in the wrong: "In conducting research and development, Huawei employees must search and use publicly available information and respect third-party intellectual property per our business-conduct guidelines." According to the U.S. Justice Department, Huawei is said to have a formal program that rewards employees for stealing information, including bonuses that increase based on the confidential value of the information gathered.
To say this has been their known strategy for a long time is an understatement.
Apple demonstrates that to avoid industrial espionage you need to make sure you don't have a chink in your supply chain.
I won't say what they manufacture but it's not electronics. Chinese company contacts them, says they want to buy some of their uber expensive stuff but could they come inspect it first? Sure thing! Several of the intended visitors unable to get visas... finally the TEAM of people shows up to inspect the product but want a TOUR of the factory. No sir, not allowed. Brings them to a room that's been walled off just for the inspection but members of this team keep trying to wander off and have to be corralled. Light no good, can't we do this somewhere else? Nope, here's more light! Table not flat enough for measurements don't you have someplace else we could do this? Nope, her'e s apiece of float glass deal. Finally they get frustrated and leave. Weeks later State Dept calls all freaked out by the team of scientists that visited - hmm! They explain the measures they took to the great relief of State Dept dude but he warns other folks might call and to just explain WTF. I ask friend about their network security - umm not good :( He tells me stories of employees plugging "music players" into production equipment USB ports to "charge them" and bringing the line to a halt as they got "infected". I swear sometimes we are our own worst enemy They did at least stop the direct physical inspection! I'm betting their network is owned up one side and down the other though...
Build it, Drive it, Improve it! Hybridz.org
on one hand they don't like their tech status symbol manufacturer's secrets being stolen by hauwei and sold to the hoi polloi on the cheap, on the other they can't bring themselves to align with recent US+Trump admin actions against hauwei.
https://www.popularmechanics.c...
Make sure you note the date on that article. This has been going on a long time! Another anecdote, company I knew manufactured DVD and CD, one of the contracts they bid on was to do the service manuals for the DOD but they kept getting underbid. They knew damn well there were VERY few US companies left that could do this and couldn't figure out how they were being underbid. They finally figured it out - a Chinese company was being used to make the media with a front company setup in the US. It took them ages to get the DOD to wake up and figure out they were sending the repair manuals for a ton of our shit over to China to have the damn DVD made. Good grief, why not have them produce our missiles too? Sheesh! Obviously years ago but man we've done some stupid stuff
Build it, Drive it, Improve it! Hybridz.org
This happens all the time. Investment banks do this all the time in the name of interviews. A head hunter is hired to call up somebody from a rival bank, with the lure to double their pay. The candidate attends the interview at an unofficial location, such as a hotel, and the interview team questions him about the rivals products, algorithms etc. Once they get what they want, the interview is over. There are entire companies that are engaged in corporate espionage. They do this to extract insider information about companies on the pretext of interviews and sell the information to hedge funds for money.
Not taking any sides, but please don't thank that Apple isn't doing what ever it takes to make sure that they know what their competitors are doing ... no one in this game is playing a nice game.
1. "tearing one apart and reverse engineering it" would give you a lot more details than asking someone out of their memory.
That depends on precisely who is being asked and what sort of documentation they have/had access to. Reverse engineering does not usually provide more details than could be obtained from the memory banks of a talented key engineer.
2. asking interviewee for info is pretty prevalent in the Silicon Valley. for one, the company asking does not sign an NDA. it is the interviewee who has signed the NDA and hold the responsibility to guard such secrets.
So let's ignore any legal implications for a moment. Would you hire someone who would so readily spill the trade secrets of their current/former employer? I sure wouldn't. Because if they'll do it to them they'll do it to you. That is a question that says more about the character of the interviewee than it does the hiring company. Assuming legal niceties are observed, this would be a question to determine NOT to hire someone if they answer anything other than saying they either do not know or cannot divulge.
It's also particularly funny given that Apple doesn't do anything of their own other than most of the iPhone software, and most of the physical design. All the actual building is done by Foxconn, so why would Huawei spy on Apple?
And it's not like Huawei can't build phones... they are the #1 seller of Android phones in the world. Evidently, they know everything they need.
Next.
is using all apples stealing tactics to steal from apple. Look goods on apple. Why should apple be the only tech company to lie, cheat and steal.
If you will betray your past employer, how can I ever trust you with my secrets?
Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
This is typical business practices everywhere. It is not corporate espionage talking to suppliers, distributors, PR, other competitors,... In information security, it is a field to protect from information leaks.
I've seen companies in america directly does corporate espionage which I excused myself from.
In the very first year Huawei started to operate in Brazil, I was working for Siemens Telecommunications. We got very surprised to discover Huawei was getting contracts from our long term clients and Siemens was being left aside. Somene was able to get a hold of the equipment that has been sold and was operating in the customer and took many pictures of it working. We were surprised to found out Huawei had cloned all Siemens hardware and even the operating system for the devices, they did not even changed the prompt design, only replaced "Siemens" by "Huawei". And charged 70% cheaper than us. Nice company.
IMHO, China needs to make a really good payment to US for all the Intellectual Property stolen from US!!!
(& it needs to clearly/strongly ban/punish any such actions in the future!!!)
There is already a trade war going on between US & China.
IMHO, it should/must continue, until all problems/disagreements clearly resolved!!!
Good artists copy, great artists steal. - Pablo Picasso
"A person is smart. People are dumb, panicky dangerous animals and you know it." - K
"Why we'd never..." should be emblazoned on Huawai's letterhead and logo.
Yeah that seems completely objective, unbiased and trustworthy /s
What's next are you going to suggest that we get the truth from CIA and the Pentagon?
Actually, all of Asia is. The concept that companies shouldn't steal secrets from each other simply doesn't exist in Asia. The notion that you can protect an idea using a patent or copyright or NDA or non-compete agreement is alien. In Asia, if a company wants to protect its secrets, it should work to protect those secrets. If their secrets get stolen, people figure its their own fault for not protecting them well enough. Corporate espionage is the norm. You may have seen this in anime or manga, where an employee is required to infiltrate another company to spy on them. The employee can be fired if they refuse.
When East meets West, you have a bunch of naive westerners blissfully running head-first into espionage methods which have been honed for over a century. It's a lot like how it must've been when the native Americans with bows and arrows were slaughtered by European firearms. Westerners have never put much thought into protecting themselves from this type of direct espionage because they've always been coddled and protected by their social norm that it was inherently wrong for companies to steal secrets from each other. So they will blissfully plug in their devices to recharge during a visit, or hand them over for "security checks" at the airport (during which the hard drive is removed and an image is made), or install a state-of-the-art manufacturing tool relying on a few screws holding the cover in place to protect the secrets that are held within.
A good example is China's high speed rail. China had no knowledge about how to construct high speed rail. They opened up bidding to foreign companies, dangling the carrot of building thousands of miles of track and trains. TGV wisely passed. Siemens took the bait. They inked a deal where Siemens would manufacture trains for China for a few years, but with the curious stipulation that the manufacturing had to be done in China. Siemens probably thought that after a few years, they'd be facing bids from other high speed rail companies again. What actually happened was the Chinese strip-mined everything they could from Siemens' manufacturing processes in China, duplicated it on their own, and gave Siemens the boot once the period of the original agreement was up.
I worked at the GE Appliance Park in Louisville, KY. They have an entire team that does nothing but tear down competitors appliances to see how they are put together. They are also nonchalant about their competitors doing the same. It is just what everybody does.
Aah, change is good. -- Rafiki
Yeah, but it ain't easy. -- Simba
China is a Totalitarian, Communist Dictatorship with a thin veneer of capitalism.
Never forget that.
When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
Which is communist. So Slashdot will love it.
Corporatism != Free Market
Nothing to steal, just remove connectors and solder everything.
Come get some, Wang.
How bizarre. There's a lot of hatred happening over an article that details nothing much happened. I am yet to see anything that we should be getting upset solely with Huwawei for. From a slightly historical view it wasn't that long ago that people were screaming at Japan for stealing trade secrets. This just looks like someone stirring the China hatred pot. Not your country, not your rules, and if you don't like it then don't buy the product (or manufacture there). Really, this entire story should be marked troll.
I reserve the write to mangle english.
"Specifically, the company built a connector for its MateBook Pro that was just like the one used in Apple's MacBook Pro from 2016, allowing the computer's hinge to be thinner while still attaching the display to the logic board."
This seems like information in the public domain, i.e. eveyone can buy a Mac book. The article didn't talk about a patent so I assume there isn't one. So gas store A lowers its gas price by 5 cents and gas store B shortly follows and gas store B is stealing trade secrets?
Remember, we have your mother dangling over a simmering bowl of soup.
Here in the wilds of Colorado, I like to have sex with my own mother, so I'm not doing this out of some misogynous intent just to be clear.
In fact, here in the wilds of Colorado, I'm the father of my own brother...copy that HACKINGBEAR GYNA!
Windbourne
When Apple's QuickTime came to Windows, Microsoft and Intel were astonished by its performance. When they couldn't compete, they just conspired to acquire the code from an Apple partner.
http://www.roughlydrafted.com/RD/RDM.Tech.Q1.07/5F0C866C-6DDF-4A9A-9515-531B0CA0C29C.html
Lycestra
Seems like the more Apple outsources their products to another country in Asia, the more they leave themselves open to this. It's why more manufacturing should be done in North America, such as an inexpensive labour market like Mexico.
When was asking things about products on official visit outlawed? Motives might be shady, but it's up to component company to control which details they release about the product and manufacturing.
If Apple had secrets stolen and used by competitors!!!
Said the Qualcom guy.
Samsung sells more phones. Huawei sell more phones than Apple though, and just replaced Apple as the number two highest seller.