08.22.2014
Taiwan Investigation Bureau Investigated Engineers of Mediatek Inc. for Violation of Trade Secrets Act
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On August 12, 2014, the Investigation Bureau, Ministry of Justice (“the Investigation Bureau”) commenced a search and seizure action against 10 former employees of Mediatek Inc. (Mediatek), a world-leading IC design company since they were suspected of engaging in business espionage.
According to the Investigation Bureau, these suspects worked for Mediatek and were familiar with Mediatek’s confidential information on manufacture, R&D and marketing of the latest IC design products. They left their post one after another in 2014 and joined another company, Digital Infrastructure Limited Taiwan Branch (HK). Since these suspects were found disclosing Mediatek’s development results to their new employer, Mediatek filed a report with the Investigation Bureau, requesting for an investigation of this business espionage case that violates the Taiwan Trade Secrets Act (“the Act”). In addition, this is the second commercial espionage case of Mediatek; a former manager of Mediatek was also found violating the Act in 2013 by reproducing Mediatek’s computer files before leaving Mediatek.
In order to deter the increasing commercial espionage cases, the Taiwan legislative body amended the Act in January of 2013. According to the latest amendment, criminal penalties for up to five years of imprisonment and/or fines from N.T.$ 1,000,000 to 10,000,000 will be imposed on these suspects if the court finally finds them (1) acquiring a trade secret by improper means; (2) using, reproducing or disclosing the trade secret without suitable authorization; (3) refusing to delete or destroy or continues to conceal the trade secret after the owner of the trade secret has instructed to delete or destroy the trade secret, and/or (4) acquiring, using or disclosing the trade secret from a malicious third party who obtained the trade secret by improper means as elaborated above.
Furthermore, the suspects of this case may face increased penalties including imprisonment from 1 year to 10 years and/or fines from N.T.$ 3,000,000 to 50,000,000 since they intentionally used the trade secrets of Mediatek in foreign countries (including China, Hong Kong and Macau).
According to the Investigation Bureau, these suspects worked for Mediatek and were familiar with Mediatek’s confidential information on manufacture, R&D and marketing of the latest IC design products. They left their post one after another in 2014 and joined another company, Digital Infrastructure Limited Taiwan Branch (HK). Since these suspects were found disclosing Mediatek’s development results to their new employer, Mediatek filed a report with the Investigation Bureau, requesting for an investigation of this business espionage case that violates the Taiwan Trade Secrets Act (“the Act”). In addition, this is the second commercial espionage case of Mediatek; a former manager of Mediatek was also found violating the Act in 2013 by reproducing Mediatek’s computer files before leaving Mediatek.
In order to deter the increasing commercial espionage cases, the Taiwan legislative body amended the Act in January of 2013. According to the latest amendment, criminal penalties for up to five years of imprisonment and/or fines from N.T.$ 1,000,000 to 10,000,000 will be imposed on these suspects if the court finally finds them (1) acquiring a trade secret by improper means; (2) using, reproducing or disclosing the trade secret without suitable authorization; (3) refusing to delete or destroy or continues to conceal the trade secret after the owner of the trade secret has instructed to delete or destroy the trade secret, and/or (4) acquiring, using or disclosing the trade secret from a malicious third party who obtained the trade secret by improper means as elaborated above.
Furthermore, the suspects of this case may face increased penalties including imprisonment from 1 year to 10 years and/or fines from N.T.$ 3,000,000 to 50,000,000 since they intentionally used the trade secrets of Mediatek in foreign countries (including China, Hong Kong and Macau).
