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Huawei Executive Accused of Helping Steal Trade Secrets

CNEX Labs, a Silicon Valley startup backed by Microsoft and Dell, is accusing high-level Huawei executive Eric Xu of participating in a conspiracy to steal its trade secrets (Warning: source paywalled; alternative source), reports The Wall Street Journal. From a report: The Journal quotes a newly released hearing transcript that offers some details in a largely locked-down trial. According to its write-up, CNEX claims that Xu — one of Huawei’s rotating chairmen — “directed a Huawei engineer to analyze Cnex’s technical information.” The engineer then allegedly posed as a potential CNEX customer to obtain details about its operations. CNEX also says that Xu was briefed on a plot to surreptitiously gather information from Xiamen University, which had obtained a computer memory board from CNEX. According to the Journal, Huawei lawyers admitted that Xu had been “in the chain of command that had requested” information about CNEX, but they denied that any trade secrets had been stolen.

Huawei originally filed a lawsuit against CNEX co-founder Yiren “Ronnie” Huang in 2017, claiming Huang — who left Huawei in 2013 — had poached employees and used its patents to build CNEX’s solid-state drive technology. CNEX counter-sued, claiming that Huawei had misappropriated its tech and was trying to gather even more information through the lawsuit.

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