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Huawei's trade secrets jury's choice begins in Texas



(Reuters) – Huawei Technologies Co. Ltd., the Chinese telecommunications equipment provider that fights a US sales ban, kicks up a US trade secret on Monday against a former employee who has been trying to make the case a referendum on Huaya's corporate behavior.

The trial, involving ridiculous claims of corporate espionage, racketeering, and a secret database of rivalry technology, promises to keep Huawei in the spotlight among a US black listing and pressure on allies not to buy their network equipment over security considerations.

The jury election begins on Monday in a federal court in Sherman, Texas, where the trial is expected to be about three weeks. The judge in the case Amos Mazzant also hears Huaweis's bid to repeal the Trumpadministration's ban on sales to authorities and contractors.

Huaiwe's process against former employee Ronnie Huang and his start-up, CNEX Labs Inc. claims "an illegal pattern of racketeering" by ex-manager to steal his technology and pocha his staff, according to court documents. CNEX develops chips that speed up data storage on cloud computing networks.

Mr. Huang denies inaccuracy and has filed an opposite, claiming that Huawei is using US courts to acquire his and others' technology and set off rivals.

Huawei is looking for "many tens of millions of dollars" in damages and rights to about 30 business secrets and CNEX patents, according to a spokesman for the Chinese engineering company. Huawei claims another Huawei employee retrieved some secrets before joining CNEX.

"Huawei showed a springboard for (Mr. Huang) to succeed where he couldn't otherwise have," said spokesman. The case had nothing to do with tensions over the US black list, he said. "This is not a case from the United States to China," said the spokesman.

Mr. Huang started CNEX 201

3 and has increased more than $ 100 million from backers including arms from Dell Technologies Inc. and Microsoft Corp.

A Huawei official posed as a potential buyer and the company used ties to a Chinese university to gain access to CNEX designs, Huang's challenge requirements. Among his accusations: Huawei rewarded staff to steal the business secrets of the rivals and store the pilfered technology in a secret database of use.

"(Huawei) is a major competitive and intelligent collection operation, which gathers intellectual property and business secrets about the world's best technology companies," said Matthew Goss, CNEX Secretary General, in an interview.

Mr. Goss said Huawei's trial, which includes one of the first claims heard under the US Defend Trade Secrets Act of 2016, was "a weapon against our courts against US companies".

                    


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