Fourteen people have been charged with stealing classified information from their former employer, Apple supplier Catcher Technology Co, to pass on to their new employer in China, the New Taipei District Prosecutors’ Office said on Friday.
The 14 people are suspected of contravening the Trade Secrets Act (營業秘密法) and the Securities and Exchange Act (證券交易法), prosecutors said.
They were charged with offenses related to breaching the trust of their former employer and leaking business secrets, prosecutors said.
Photo: Chien Li-chung, Taipei Times
Catcher, a manufacturer of metal casings for computers and smartphones, is one of the main suppliers of such products to Apple Inc and has the highest share in the domestic metal casing market.
Luxshare Precision Industry Co (立訊精密), a Chinese firm, is suspected of poaching talent from the Taiwanese company’s research and development (R&D) team based in China, prosecutors said.
Luxshare might have sought to enter the market quickly to secure orders from Apple, they said.
Luxshare offered the 14-member team, led by a management-level employee surnamed Cheng (鄭), increased salaries, relocation bonuses and management-level positions for helping introduce its products to the market, prosecutors said.
Before Cheng and the rest of the team left Catcher for Luxshare, they stole large amounts of R&D and management secrets, prosecutors said.
The team used the stolen information to help Luxshare expedite the establishment of manufacturing facilities and product lines to mass-produce metal casings for iPhones and iPads, causing significant financial harm to Catcher, prosecutors said.
The New Taipei City office proved corporate espionage after cross-referencing onsite observations of Catcher’s standard operating procedures and analyzing data from the team with the help of digital and cybersecurity professionals at the High Prosecutors’ Office and the Ministry of Justice’s Investigation Bureau, they said.
The investigation and collection of evidence took one-and-a-half years, prosecutors said, adding that they also executed four searches, froze the suspects’ bank accounts, and interrogated witnesses and suspects.
The investigation officially concluded on Friday, with Cheng and 13 alleged coconspirators charged.
Catcher said in a statement that it would pursue legal action against the 14 people, and reinforce its protocols to safeguard trade secrets and intellectual property.
Catcher said it would cooperate with the judicial proceedings.
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