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A former Intel employee who quit to work for AMD has been indicted in trade secrets theft

A federal grand jury has indicted a former Intel employee whom the Federal Bureau of Investigation (FBI) has accused of stealing trade secrets from the company.

Biswamohan Pani, 33, allegedly was found with more than 100 pages of Intel documents, with 13 "top secret" file also discovered inside his residence.  Intel put more than $1 billion of research and development money into the documents Pani stole, which includes future CPU designs.

"The indictment was not a surprise," said Bradford Bailey, Pani's attorney.  "We knew it was coming.  We will enter a plea of not guilty when an arraignment date is set, and he will vigorously contest the charges because he is innocent."

Pani submitted his resignation at Intel in May 2008, and planned on working until June 11, but began working for Advanced Micro Devices on June 2.  When he started his job at AMD, he still had an Intel laptop and access to the internal Intel network.

During a search of his home in early July, the FBI found eight different documents that were classified as "secret," "top secret" and "confidential."  AMD did not request he steal the information or knew anything about his actions, the federal government believes.

"AMD has not been accused of wrongdoing, and the FBI has stated that there is no evidence that AMD had any involvement in or awareness of Mr. Pani's alleged actions," AMD said in a statement published by the Associated Press.

According to Pani, he took the files to help his wife work on a project, who is currently employed by Intel.  Intel quickly pointed out the files would have served no use for his wife.

Pani now faces four counts of wire fraud and one count of theft of trade secrets.  He faces up to 10 years on the single count of theft of trade secrets and up to 20 years for each count of wire fraud.

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RE: Let me get this straight...
By ShaolinSoccer on 11/7/2008 12:14:47 AM , Rating: 2
And what about AMD? Does this mean they should also be sued if they use any of that technology that this guy supposedly shared with them?

RE: Let me get this straight...
By Aloonatic on 11/7/2008 5:15:37 AM , Rating: 2
Not sure how many people here follow Formula 1 but this seems to be similar to last season's Ferrari/MacLaren SpyGate nonsense.

Although in that case the ex-Ferrari employee went around touting the information to a couple of teams (Honda and MacLaren) and in the end I think some drawings and technical information were found on MacLaren's computers/network when they were searched, but most of the documents were at Stepney's (the ex-Ferrari Employee's) home.

In the end it was pretty difficult for anyone to prove that said information was used and MacLaren claimed that no-one looked at the information so they were fined by the sports governing body (and a few other sport specific things like showing the 2008 car didn't have a prancing horse on the front) but nothing happened in the courts.

They guy who walked out the door with the information on the other hand is in a little more trouble.

It seems that in these cases the individual is taking a massive risk and the corporation in receipt of the information can walk away without getting burned too badly as it's hard to prove that they used the information or solicited it in the first place.

RE: Let me get this straight...
By afkrotch on 11/7/2008 5:46:30 AM , Rating: 2
Need to prove that they used the information to create a product. AMD could have reversed engineered a C2D and created processors based on it, but patent infringement would have hit them.

"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates

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