Security News > 2020 > February > US Charges Huawei With Stealing Trade Secrets

The U.S. Justice Department has filed new charges against Huawei and several of its subsidiaries, plus its CFO, accusing them of racketeering and engaging in a conspiracy to steal trade secrets from American companies.

The new 16-count indictment unsealed Thursday accuses Huawei and four subsidiaries - Huawei Devices, Huawei USA, Futurewei and Skycom - of engaging in a criminal conspiracy to "Misappropriate intellectual property, including from six U.S. technology companies, in an effort to grow and operate Huawei's business."

Prosecutors allege that Huawei and its subsidiaries, including Huawei USA and Futurewei, which are based in the U.S., entered into confidential agreements with the owners of six American companies and then broke those agreements by stealing and using the those firms' trade secrets and intellectual property, which saved Huawei research and development costs.

Huawei and its subsidiaries allegedly recruited former employees of those companies and asked them to steal trade secrets from their former employers, launching a bonus program with financial incentives to reward those who got confidential information, according to the new indictment.

In addition to allegedly stealing intellectual property, the new indictment charges Huawei with conducting business with countries such as Iran and North Korea that face economic sanctions by the U.S. Federal prosecutors allege that Huawei sold its equipment to these companies through local affiliates.

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https://www.inforisktoday.com/us-charges-huawei-stealing-trade-secrets-a-13725