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ARTICLE · 04 FEBRUARY 2019

Huawei Trade Secrets Indictment Is Cautionary Tale For Tech Partnerships

In a case that will be watched closely by both national security personnel and intellectual property counsellors in the United States and China ...

United StatesIntellectual Property

In a case that will be watched closely by both national security personnel and intellectual property counsellors in the United States and China, federal prosecutors unsealed a 10-count indictment in the Western District of Washington State on Monday, January 28, 2019 against Huawei Device Company Ltd. and Huawei Device Company, U.S.A. Huawei is the largest supplier of telecom equipment in the world and the indictment charges the company with theft of trade secrets conspiracy, attempted theft of trade secrets, seven counts of wire fraud and one count of obstruction of justice.

According to the Justice Department, Huawei encouraged its engineers to steal information related to T-Mobile’s phone-testing robot named “Tappy,” while it served as T-Mobile’s supplier1. Specifically, the Justice Department alleges that Huawei constantly encouraged its engineers to undertake the theft, with the engineers going so far as to take a piece of Tappy for study and reproduction by

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