Feds may burden Huawei with theft of trade secrets

The prosecution is preparing to prosecute Huawei for alleged theft of business secrets by American companies, the Wall Street Journal reported today (January 16).

Picture credits: viewimage / ShutterstockPicture credits: viewimage / Shutterstock

Citing unnamed sources, the Journal reported that the criminal investigation was due to several civil claims against Huawei, including a T-Mobile-developed smartphone testing robot called Tappy.

The criminal investigation only makes it worse for Huawei. Huawei has been accused of being a threat to national security for Western countries, and the CFO expects that Canada will be surrendered to the US for allegedly exporting US technology to Iran in violation of sanctions.

China has harassed Canadian citizens out of retaliation, and this week a Canadian who was convicted of drug smuggling several months ago has been sentenced to death.

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Huawei products have already been classified as a threat to national security in the US. AT & T and Verizon reportedly canceled plans to buy the Huawei Mate 10 in the past year, just before this device entered the US market. The Mate 10 was still unavailable, but the majority of US smartphone buyers got their devices via carriers, which was a big blow to Huawei. Overseas, Australia and New Zealand have banned local companies from using Huawei equipment. BT, a British telecommunications company, said it will stop using Huawei's hardware and software.

On December 1, the Canadian authorities arrested Huawei CFO Meng Wanzhou, daughter of the company founder, when she switched planes at the request of the US Department of Justice in Vancouver. She faces extradition to the US for allegedly violating laws prohibiting the sale of US technology to Iran, and was bailed out of Canada's $ 10 million ($ 7.5 million).

Last week, Poland arrested a Huawei employee for espionage. Yesterday (January 15), a top research lab in Taiwan banned Huawei devices from connecting to their network.

At the request of the journal, neither the Ministry of Justice nor Huawei would comment on the alleged criminal investigation.

In 2003, Cisco sued Huawei for using Cisco code in Huawei routers. Huawei admitted the "embezzlement" and removed the code from his products in return for Cisco dropping the lawsuit.