SAN JOSE, Calif. - A federal jury in Baton Rouge, La., this week convicted a former research scientist of stealing trade secrets from Dow Chemical Co. and selling them to companies in the People’s Republic of China.
The jury found Wen Chyu Liu, aka David W. Liou, of Houston, guilty of one count of conspiracy to commit trade secret theft and one count of perjury.
According to the FBI, ''Liou came to the United States from China for graduate work. He began working for Dow in 1965 and retired in 1992.'' Dow is a producer of the elastomeric polymer, chlorinated polyethylene (CPE). Dow’s Tyrin CPE is used in a number of applications worldwide, such as automotive and industrial hoses, electrical cable jackets, and vinyl siding.
''While employed at Dow, Liou worked as a research scientist at the company’s Plaquemine, La., facility on various aspects of the development and manufacture of Dow elastomers, including Tyrin CPE. Liou had access to trade secrets and confidential and proprietary information pertaining to Dow’s Tyrin CPE process and product technology,' according to the FBI. ''The evidence at trial established that Liou conspired with at least four current and former employees of Dow’s facilities in Plaquemine and Stade, Germany, who had worked in Tyrin CPE production, to misappropriate those trade secrets in an effort to develop and market CPE process design packages to various Chinese companies.''
''Liou traveled extensively throughout China to market the stolen information, and evidence introduced at trial showed that he paid current and former Dow employees for Dow’s CPE-related material and information. In one instance, Liou bribed a then-employee at the Plaquemine facility with $50,000 in cash to provide Dow’s process manual and other CPE-related information,'' according to the FBI.
Liou faces a maximum of 10 years in prison on the conspiracy to commit trade secrets theft charge, and a maximum of five years in prison on the perjury charge. Each count also carries a maximum fine of $250,000. A sentencing date has not yet been scheduled.
In the past, when China was a backwater of technology, stealing technology from us just kept them minimally in the game. Now that they are ready to leap frog us technically, this should be treated as an act of aggression. When will the WalMart Lobby in Washington allow the US to get serious with China about stealing intellectual property? The real traitors in this are the congressmen and lobbyists that prevent real action against China for their total disregard of international IP law. This has been going on for years and congress does nothing.
This bothers me, but what bothers me even more is when foreign companies purchase US companies and therefore inherit technology whose development was originally and substantially supported by our tax dollars (incl. NASA and DoD), not to mention its effects on nat'l security and long-term global competitiveness. I am concerned that there is a lack of attention to this and other such notions when approval is sought for such profound acquisitions.
Many journalists have noticed that obtaining information from companies has become extremely hard to get. The industry is well aware that IP theft is an accepted form of business in Asia.
Mark is providing news on those cases that come to light. A vast number do not.
And I agree, with Selinz, bury him under the court house...,
Does the increase in "insider trading" and "corporate espionage" articles indicate a trend - or does it simply reflect Mark LaPedus' area of interest as a writer? Certainly these things have been happening for years.
Join our online Radio Show on Friday 11th July starting at 2:00pm Eastern, when EETimes editor of all things fun and interesting, Max Maxfield, and embedded systems expert, Jack Ganssle, will debate as to just what is, and is not, and embedded system.