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Print 22 comment(s) - last by TheSpaniard.. on Nov 28 at 7:09 PM

Two engineers will spend the next one year in prison after getting convicted of smuggling trade secrets

A seven-year legal battle came to a close when two former Silicon Valley engineers were sentenced to one-year prison sentences after being charged with federal economic espionage charges.

Ming Zhong, a permanent resident of the United States, and Fei Ye, a U.S. citizen, stole sensitive information from Sun Microsystems, Transmeta, NEC Electronics and Trident Microsystems in November 2001.  They were caught at the airport with trade secrets from Sun and Transmeta only.   

The pair was arrested at the San Francisco International Airport after attempting to leave the country so they could launch a government-supported startup with the stolen computer chip designs.  Federal prosecutors did not accuse the Chinese government of having a role in the conspiracy.  

Zhong and Ye plead guilty in December 2006, becoming the first people convicted under the Economic Espionage Act of 1996, which imposed heavier penalties for people exporting technology secrets to other nations.

Both Zhong and Ye faced between three and five years, but could have faced up to 30 years in federal prison.  Prosecutors granted leniency because the defendants cooperated with federal investigators, but refused to give them home detention, as requested by the defendants' lawyers.

Zhong faces deportation after his prison sentence, and it's possible he'll face punishment from the Chinese government for cooperating with prosecutors in the U.S.

There has been a growing concern of American engineers exporting trade secrets to foreign companies in exchange for payment.  To help battle against this kind of theft, the U.S. government has created additional anti-espionage laws that increase punishment and government increased enforcement.



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Sticking it to the red guys
By ninus3d on 11/24/2008 5:04:25 AM , Rating: 5
The pair was arrested at the San Francisco International Airport after attempting to leave the country so they could launch a government-supported startup with the stolen computer chip designs. Federal prosecutors did not accuse the Chinese government of having a role in the conspiracy.

Tsk tsk, no balls ;)




RE: Sticking it to the red guys
By nomagic on 11/24/2008 6:21:16 AM , Rating: 3
I believe China probably also catch spies of the west from time to time.

Maybe there is a sort of unsaid understanding...


RE: Sticking it to the red guys
By JKflipflop98 on 11/24/2008 6:59:05 AM , Rating: 5
China has no technology that we would possibly want. All the good stuff is made in the US and Taiwan.


RE: Sticking it to the red guys
By TheSpaniard on 11/24/2008 7:45:16 AM , Rating: 2
but they do have a military... thats always worth watching


RE: Sticking it to the red guys
By Bateluer on 11/24/2008 8:13:12 AM , Rating: 5
Spies aren't always there to steal technology.


RE: Sticking it to the red guys
By murphyslabrat on 11/24/2008 9:36:39 AM , Rating: 5
Yeah, you can select the "sabatoge" or "hide" options as well.


RE: Sticking it to the red guys
By MatthiasF on 11/25/2008 1:13:24 AM , Rating: 2
Deserves a 6 for the MOO2 reference.;)


RE: Sticking it to the red guys
By TheSpaniard on 11/24/2008 8:00:48 AM , Rating: 3
if they caught one of our spys they would make a big public stink about it and everyone would know...

unless the media ignores those things


RE: Sticking it to the red guys
By IceBreakerG on 11/24/2008 9:05:31 AM , Rating: 5
They didn't make a huge deal when they captured Jack Bauer.


RE: Sticking it to the red guys
By TheSpaniard on 11/24/2008 10:49:51 AM , Rating: 3
I can neither confirm nor deny that at this time.


RE: Sticking it to the red guys
By goz314 on 11/24/2008 1:40:29 PM , Rating: 2
Man! People really do have short memories.

http://en.wikipedia.org/wiki/U.S.-China_Spy_Plane_...


RE: Sticking it to the red guys
By TheSpaniard on 11/28/2008 7:09:16 PM , Rating: 2
forgot about that!


RE: Sticking it to the red guys
By Solandri on 11/24/2008 1:39:22 PM , Rating: 5
There's a cultural difference at work here. Asian notions of business are somewhat different from Western norms. The concept that it's wrong to steal ideas from competing businesses (and the concept of intellectual property - copyright, patents) is distinctly Western, and foreign to Asian minds. The way businesses grew in Asian countries was to take every idea you could think of, scrape, borrow, beg, or, yes, steal.

The whole notion of "fair play" is different over there. There is less emphasis on specific rules, and more emphasis that the overall concept is self-consistent. Businesses are expected to compete with each other. Generally speaking, part of that competition is trying to figure out what your competitors' ideas and plans are. So prohibitions against stealing ideas from each other seem like an artificial restriction on competition over there.

You saw a similar thing with the U.S. Navy's EP-3 surveillance plane which was forced to land in China. It was operating in international waters so Westerners didn't see any problem with it. To their minds (and according to the rules) it did nothing wrong. If anything, they congratulated themselves for being clever enough to come up with technology which allowed them to spy on China without breaking any laws.

The Chinese however saw it differently. Regardless that the plane didn't violate any specific laws, its intent was to spy on the Chinese military. So the Chinese were incensed by the flights. The general intent was more important than the specific law. (Business and government are viewed differently - businesses are supposed to compete with each other, but an act against your country's government is personal.)

So the Chinese (and Taiwanese, Japanese, and Koreans) probably have a lot more corporate spies here than the U.S. has there. This also explains some other incongruities you might see. e.g. A package that someone forgot at a subway station in Japan can end up sitting there for days because nobody will take something that isn't theirs. But Kawasaki had no problem with taking the U.S. patent on the jet ski, replacing the American inventor's name with a couple of their employees', and submitting it for a patent in Japan. Business norms are very different over there (and probably contribute to a lot of the business corruption that's common).


RE: Sticking it to the red guys
By croc on 11/24/2008 5:01:04 PM , Rating: 3
One intelligent post out of the bunch of 'America's the greatest' comments. Well, at least you didn't get rated down....


RE: Sticking it to the red guys
By Dwayno on 11/24/2008 9:36:15 AM , Rating: 3
Good thing that the US and China are "business partners"! Otherwise, the Chinese government might be accused of "enticing" these guys to steal those secrets!


I like China's example here.
By FITCamaro on 11/24/2008 8:40:56 AM , Rating: 1
quote:
To help battle against this kind of theft, the U.S. government has created additional anti-espionage laws that increase punishment and government increased enforcement.


We should start executing these guys like China would. And I don't believe for a second that these guys weren't involved with the Chinese government.




RE: I like China's example here.
By Ryanman on 11/24/2008 8:44:54 AM , Rating: 2
All we have to do is deport them. Like the article said, the Chineese are going to "punish" him anyway. That way we keep our hands clean : )


RE: I like China's example here.
By FITCamaro on 11/24/2008 9:11:23 AM , Rating: 2
Very true.


RE: I like China's example here.
By Adonlude on 11/24/2008 7:42:14 PM , Rating: 2
BS! I am sick of all this political correctness and keeping of clean hands. One was even an American citizen who I believe should be charged with treason. We have created so many damn social barriers for ourselves here in America that we might as well deliver a bouquet of flowers to the defendant with every scentencing.


Wanted......
By crystal clear on 11/24/2008 9:22:46 AM , Rating: 4
A typical JOB advert in China should read like this-

Urgently needed-

Trojan creators – high quality malicious code writers wanted

Web exploiters – talented infectors sought

Exploit experts - tech geeks, programmers and researchers required

Fraudsters – ambitious, well connected crooks required to steal data

Outsourced rogue hosting companies – industry knowledge essential, must appear legitimate


You can add more similar interesting/imaginative job positions & job descriptions ......if I missed out something.




RE: Wanted......
By dsx724 on 11/24/2008 9:34:49 AM , Rating: 2
Capitalists - convert our bots into cash


1 year is not enough.
By Guttersnipe on 11/27/2008 7:27:06 AM , Rating: 2
this stuff needs to be punished with much harsher sentences. its getting ridiculous. i'd expect them in jail for no less than 5 years for selling out our country.




“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith











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