2 indicted for stealing trade secrets for Chinese company

Taipei, Aug. 20 (CNA) The Taiwan Taoyuan District Prosecutors Office has indicted two men for allegedly stealing technology from their former Japan-based employer on behalf of a Chinese company, the office said.

The two men, surnamed Wu (吳) and Huang (黃), are suspected of copying and revealing the company's core technology to a man surnamed Wang (王), who owns a precision industry company in China, prosecutors said.

They are accused of breaching trust and obtaining records from another's computer without good reason, in violation of the Criminal Code, according to prosecutors. They are also accused of violating the Trade Secrets Act and Copyright Act.

Prosecutors added that their actions are believed to have resulted in the company losing at least NT$12.3 billion (US$385 million).

Wu and Huang were employed as a research and development manager and a senior engineer. They were both involved in designing and developing manufacturing processes for the company's patented microactuators, prosecutors said.

Wang approached Wu after setting up a research and development center in Taiwan as he sought to advance vertical integration for his Chinese company.

He interviewed Wu in 2019, promising annual pay of NT$5 million. He also transferred US$98,000 and US$66,000 to Wu and his spouse and agreed to give the spouse stocks and a paid nominal company position, prosecutors said.

Wu then recruited Huang, after which they proceeded with the alleged crimes before resigning from their former company in February and May 2020, respectively.

The case came to light when the company was checking email records of former employees, upon which they reported the case to prosecutors.

Prosecutors recommended the two men receive heavy sentences, to protect the stable development of high-tech industries and to ensure Taiwan's industrial competitiveness.