Huawei stole trade secrets from a US chip production firm – Texas Court rules

Amidst of the tussle between Huawei and the US government, Huawei had sued CNEX Lab Inc., a semi-conductor production company in which Huawei claimed that the US company was stealing trade secrets and even poaching their employees.

Notably, CNEX Lab Inc. founder was a former employee of the Chinese firm Huawei, who founded the semi-conductor company days later after leaving his job at Huawei.

As a result, he was required to report his patents filings to Huawei within a year after breaching his contract by leaving the Chinese tech giant. The lawsuit was filed in a Texas district in the US in which the court rejected those claims and found CNEX’s founder guilty for failing to report his patent filings to Huawei.

CNEX Lab Inc then went ahead to file a counter- lawsuit against Huawei for aiming at stealing their technology by posing as a customer. Additionally, CNEX claimed the Huawei lawsuit was an attempt to obtain their proprietary technology.

Huawei Technologies Inc was found guilty of the proprietary technology stealing charges, but the jury didn’t offer compensation to CNEX for the damages caused. In a report, CNEX’s executive officer cleared that the case was not about money; instead, it was “about a victory for the rule of law and for global standards of ethical corporate behavior.”

Huawei has already filed a lawsuit against the US trade ban in the same Texas court which the company wants to be reconsidered in selling its products in the US. At the same time, two Huawei units are also facing separate lawsuits in Seattle USA against T-Mobile US Inc. of conspiring to steal trade secrets between 2012 and 2014.

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