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A former manager of Huayke, surnamed Fang, was accused of collaborating with colleagues to falsify business secrets such as the construction of a wafer fab before leaving the company. After leaving the company, he went to work for Yangtze River Storage. Taocha was sued under trade secret law and claimed the proceeds were confiscated.
A former public works department manager of Taiwan’s Huaya Technology Co., surnamed Fang, was suspected of conspiring with colleagues surnamed Chen and Zhang to use USB flash drives to unauthorizedly reproduce Huaya Technology’s business secrets such as wafer fab manufacturing, factory pipelines and production systems. After leaving his job, he went to China to work for the Yangtze Memory Company. The Taoyuan District Prosecutor’s Office prosecuted them for violating trade secret law and other crimes.
Fang Nan, 51, had worked for Huaya Technology Co. since June 16, 2003, the lawsuit said. Before leaving his job, he served as manager of the Public Works Department and was responsible for the design of factory pipeline engineering. Yangtze Memory Co. and Hefei Ziju Co., both affiliated with China’s Tsinghua Unigroup, actively planned and built factories between 2015 and 2016, extending an olive branch to Taiwan’s semiconductor talents.
On the eve of his resignation in November 2016, Fang Nan knew that the electromagnetic records of Huake’s factory’s construction, production and fluid piping were important business secrets of the company. She actually contacted wanted associates named Liu, Chen and Zhang on the basis of criminal intent, and instructed Chen to provide a personal laptop, and Fang Nan provided Zhang Nan with a USB flash drive containing confidential files, and copied a large number of confidential files such as Huayake’s factory construction and facility plan into her personal computer.
After Fang Nan resigned on November 24, 2016, he immediately moved to China Yangtze Storage Company as the air conditioning design manager, responsible for plant construction, contracting and testing. The Taoyuan City Investigation Office of the Investigation Bureau of the Ministry of Justice launched a search with a search ticket on February 2, 2017, and seized laptops and hardware containing thousands of electromagnetic records of Huayaco’s factory design, highly confidential specifications, and reviews of the factory’s construction experience from the residences of the relevant individuals involved. Thus the entire matter was exposed as taking business secrets illegally.
The Prosecutor’s investigation determined that defendant Feng Nan was guilty of the crime of obtaining trade secrets with the intention of using them in China without authorization under Article 13-2, Article 1, Paragraph 2 of the Trade Secrets Act, the crime of infringement of copyright property rights under Article 91, Article 1 of the Copyright Law, and the crime of obtaining other people’s electromagnetic records without reason under Article 359 of the Criminal Law. The prosecutor claimed that his criminal earnings, including his five years and four months’ salary at Yangtze Storage and his five-year year-end bonus, were confiscated in accordance with the law.
Summary FAQ
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The main defendant is a 51-year-old man surnamed Fang. He has been working at Huya Technology since 2003. Before leaving, he had served as manager of the Public Works Department and was responsible for the design of factory pipeline engineering, so he had access to a large amount of information related to factory construction and production.
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Prosecutors alleged that before leaving his job, he conspired with his colleagues to unauthorizedly reproduce electromagnetic records such as the Huayco Wafer Fab, manufacturing factory pipelines and production systems, using USB flash drives and laptops and copied and transported large numbers of confidential files.
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Prosecutors prosecuted him according to trade secret law, copyright law and criminal law, and determined that he obtained trade secrets by reproducing them with the intention of using them in China, and pleaded for the confiscation of his five years and four months of salary and five years of year-end bonuses at Yangtze Storage.
