Late last decade, Huawei Technologies Co. faced extremely tough sanctions after the company faced accusations of violating U.S. sanctions on Iran, followed by the arrest in Canada of the daughter of the company’s chief financial officer and founder. The new phase of the legal proceedings will involve Huawei’s accusations of systemic industrial espionage.
Image source: Huawei Technologies Co., Ltd.
according to financial timesLater, U.S. judicial authorities accused Huawei Technology Company of deliberately and frequently stealing other people’s technical secrets. Investigators said the Chinese company had a “competition management group” that allegedly rewarded employees who obtained valuable information about Huawei’s competitors through illegal means. The data they receive can be transferred via a secure channel to a specific email address. “Leaders” of such events will receive additional bonuses at the end of the month, sources said.
Prosecutors used data on Huawei’s activities over the past two decades, but the company itself denies such accusations and believes the U.S. judicial system is biased against it. The trial in the case will take place in New York and could last several months. The issue may even become a topic of discussion at the upcoming U.S.-China summit this month. Experts say that from a political perspective, taking advantage of Huawei’s unique position is very logical.
If Huawei is found guilty, the company could face fines twice the amount of the alleged damages. Although Huawei is already subject to U.S. sanctions, an adverse outcome for the company in the new U.S. case will cause difficulties at the level of interaction with the banking system. In addition, court rulings may seize Huawei’s accounts in foreign banks. “The U.S. government’s overall narrative is clearly false.” – A Huawei representative addressed the new accusations, stressing that U.S. officials will use the company as a tool to pressure China in the trade war. The company says its success is the result of years of efforts to spur its own innovation and a strong respect for intellectual property rights. Huawei has been among the top six companies with the largest investment in development and research in the world for nine consecutive years.
One of the prosecutors’ arguments relates to a 2013 report that a Huawei employee allegedly stole a robotic arm from a U.S. telecommunications company’s T-Mobile lab. Outside the lab, a Huawei employee put his hand in his laptop bag, carefully photographed the robotic arm device and its measurements, and sent the data to colleagues. Only after this is the item returned to the rightful owner at the initiative of the rightful owner.
Huawei representatives believe that prosecutors are trying to connect different incidents, which do not form a coherent picture, proving that the company systematically and deliberately abused the intellectual property rights of others. As Huawei points out, claims in this area will appear in the work of any company dealing with complex technology in a highly competitive industry.
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