Each of the 12 felony counts alleging the theft and possession of trade secrets carries a statutory maximum sentence of 10 years in federal prison and a fine of up to $5 million, prosecutors note.Īn attorney representing Lu declined to comment on the case. The defendant is scheduled to be arraigned on the superseding indictment on June 13, and a trial is slated for Jan. The new indictment incorporates the allegations related to four trade secrets owned by the other medical device maker, the Justice Department says. That original indictment included allegations related to only one of the companies' trade secrets, prosecutors note. Lu was initially indicted in this case in December 2012. "Moreover, when the stolen material is destined for foreign entities seeking to compete with American businesses, as it was in this case, IP theft also threatens the security of our nation." Second Indictment Attorney Eileen Decker said in a statement. "Intellectual property theft poses a grave threat to businesses and the employees who depend on those businesses for their livelihoods," U.S. In addition, prosecutors also allege Lu took photos in company labs of gear used to document medical device component test results and downloaded and saved confidential company information on USB thumb drives. Labeling trade secret documents as confidential.ĭespite all these precautions, Lu allegedly downloaded a variety of documents, including presentations, reports and internal emails "pertaining to confidential products and components" and sent those to his personal email address, prosecutors say.Providing training and instruction regarding the security and safeguarding of restricted and confidential business information and.Mandating visitor sign-in sheets and escorts.Requiring employees to sign nondisclosure and confidentiality agreements that prohibited disclosure of trade secrets and confidential and proprietary information and extended beyond the length of employment.Limiting access to the trade secrets only to those who need them to perform their employment duties.Limiting physical access to the locations within the company where the trade secrets were stored through the use of security personnel and access badges.Protecting Trade SecretsĬourt documents list a series of precautions each medical device company took to protect its confidential and trade secret information. Lu appeared "to be in the process of setting up a company with other individuals in to manufacture medical devices," an FBI agent wrote in an affidavit filed in the case. Lu was arrested as he prepared to board a plane to China in November 2012, according to court documents. Lu travelled to the People's Republic of China multiple times, "sometimes soon after allegedly downloading trade secrets from an employer's computer and emailing information to his personal email account." The indictment alleges that during his employment at the companies - ev3/Covidien and Edwards Lifesciences Corp. Theft Allegationsįederal prosecutors allege that Lu "stole the confidential and proprietary trade secrets from two different medical device companies with research facilities in Irvine, where he worked from January 2009 until he was arrested in 2012." "Many companies do not pay enough attention to how they monitor employee data issues and generally do not pay enough attention to addressing these kinds of insider risks," Nahra says. "These can involve trade secrets/proprietary information or sensitive personal information."Įmployees who need access to data to do their jobs can misuse this data in many different ways, the attorney notes. "This is another example of insider risks that present enormous potential problems for companies in all industries," says privacy attorney Kirk Nahra of the law firm Wiley Rein, who is not involved in the case. See Also: Live Webinar | Unmasking Pegasus: Understand the Threat & Strengthen Your Digital DefenseĪ federal grand jury in California has issued a 12-count indictment charging Wenfeng Lu of Irvine, Calif., with stealing and possessing trade secrets belonging to two former employers, both of which develop and manufacture medical devices used to treat cardiac and vascular ailments, according to the U.S. medical device companies so he could help start a firm in China highlights the need for organizations to prioritize the protection of their intellectual property. A criminal case against an engineer who allegedly stole trade secrets while he worked at two U.S.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |