Two men indicted in Taiwan for leaking technology, trade secrets to Chinese company

Two men working at a Japanese company in Taiwan have been allegedly indicted for stealing technology from their Japan-based employer on behalf of a Chinese company, according to Taiwan state media.

The Japan-based company specialisesin technologies, including cameras and mobile phone lens functions.

The suspects, surnamedWu and Huang, worked as research and development manager, and chief engineerrespectively. They were also involved in designing and developing manufacturing processes for the company's patented microactuators.

They were suspected of copying and disclosing the company's core technology to a man surnamed Wang, who owns a precision industry company in China.

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Wang established a computer and consumer electronics component sales business in China and came to Taiwan for research and development, according to the prosecutors.

Wang consulted Wu to integrate the company's industrial supply chain and promised him an annual salary of NT$5 million if he worked for his company. He also paid USD 98,000 and USD 66,000 to Wu and his spouse and agreed to give the spouse stocks and a nominal company position.

Wu and Huang are accused of breaching trust and obtaining records from another's computer without good reason, in violation of the Criminal Code. Moreover, they are also accused of violating the Trade Secrets Act and Copyright Act.

The prosecutors further stated that their actions are believed to have resulted in the company losing at least NT$12.3 billion.

However, later, when the company was checking email records of former employees, the case was revealed. After the case came to light, the company reported it to prosecutors.

The prosecutors have suggested that the two men should receive heavy sentences, to protect the stable development of high-tech industries and ensure Taiwan's industrial competitiveness.

Earlier in July, 60-year-old Tsou was indicted by the Taoyuan District Prosecutors Office for stealing USD 60 million in trade secrets from his former employer and violating the Trade Secrets Act.

He was suspected of copying and taking under possession a total of 5681 confidential business files belonging to HCM Co. on the company's materials, processes, design and equipment development. HCM is a Taiwan-based lithium battery material supplier specializing in lithium manganese iron phosphate (LMFP) production.

(With inputs from agencies)