Latest news with #tradeSecrets
Fox News
22-07-2025
- Business
- Fox News
Chinese citizen admits stealing US trade secrets for next-generation national security tech
A dual U.S.-Chinese citizen formerly employed as an engineer at a Southern California company has admitted to stealing U.S. trade secrets for next-generation national security technology. Though Chenguang Gong, 59, of San Jose, pleaded guilty to one count of theft of trade secrets, he remains free on a $1.75 million bond, according to the Justice Department. U.S. District Judge John F. Walter scheduled sentencing for Sept. 29. Prosecutors said Gong faces a statutory maximum penalty of 10 years in prison. According to his plea agreement, Gong transferred more than 3,600 files from a Los Angeles-area research and development company where he worked, to personal storage devices during his brief tenure with the company last year. Federal prosecutors said the files Gong transferred include blueprints for sophisticated infrared sensors designed for use in space-based systems to detect nuclear missile launches and track ballistic and hypersonic missiles. Other files were said to have included blueprints for sensors designed to enable U.S. military aircraft to detect incoming, heat-seeking missiles and take countermeasures, including by jamming the missiles' infrared tracking ability. "These files describe the methods, designs, techniques, processes, specifications, testing, and manufacture of these technologies and would be extremely damaging economically if obtained by the Victim Company's competitors, and would be dangerous to U.S. national security if obtained by international actors," the complaint says. The "intended economic loss" from Gong's criminal conduct exceeds $3.5 million, according to the plea agreement. Court documents note that much of the Malibu-based company's work is funded through contracts with the U.S. Department of Defense and other U.S. government contractors. Gong was hired by the company in January 2023 as an application-specific integrated circuit design manager responsible for the design, development and verification of its infrared sensors. From approximately March 30 that year until his termination on April 26, 2023, Gong allegedly transferred thousands of files from his work laptop to three personal storage devices. That included more than 1,800 files after he had accepted a job at one of the company's main competitors, prosecutors said. Prosecutors said many of the files Gong transferred contained proprietary and trade-secret information related to the development and design of a readout integrated circuit that allows space-based systems to detect missile launches and track ballistic and hypersonic missiles and a readout integrated circuit that allows aircraft to track incoming threats in low-visibility environments. Gong also allegedly transferred files containing trade secrets relating to the development of "next generation" sensors capable of detecting low-observable targets while demonstrating increased survivability in space, as well as the blueprints for the mechanical assemblies used to house and cryogenically cool the company's sensors. That information was among the company's most important trade secrets and is worth hundreds of millions of dollars, according to the DOJ. Many of the files had warnings in bold letters that the information was proprietary, export-controlled and for "official use only." The FBI executed a search warrant on May 8, 2023 at Gong's temporary residence in Thousand Oaks, California, and also searched his vehicle and his person. Law enforcement recovered multiple digital devices belonging to Gong, some of which contained the company's propriety files. The complaint says the FBI, however, did not locate two hard drives Gong used to exfiltrate the company's trade secret and proprietary information, "and the whereabouts of those drives to date remains unknown." Prosecutors said Gong repeatedly denied processing those hard drives or knowing where they were located in May 2023 interviews with the FBI. Gong was arrested on federal charges on Feb. 7, 2024, but was later released on bond. Court documents say Gong first entered the United States in or around 1993 and became a U.S. citizen in 2011. His resume states that he earned a Master of Science Degree in Electrical Engineering from Clemson University and completed some PhD work at Stanford University, according to the complaint. Law enforcement also said Gong applied to "Talent Programs" administered by the People's Republic of China while he was employed at several major technology companies in the U.S. between approximately 2014 and 2022. While employed at a U.S. information technology company headquartered in Dallas, Gong in 2014 sent a business proposal to a contact at a high-tech research institute in China focused on both military and civilian products, prosecutors said. In the proposal, Gong described a plan to produce high-performance analog-to-digital converters like those produced by his employer. In another "Talent Program" application from September 2020, prosecutors said, Gong proposed to develop "low light/night vision" image sensors for use in military night vision goggles and civilian applications. Gong's proposal included a video presentation that contained the model number of a sensor developed by an international defense, aerospace, and security company where Gong worked from 2015 to 2019, according to the DOJ. Authorities said Gong traveled to China several times to seek "Talent Program" funding in order to develop sophisticated analog-to-digital converters. The Justice Department cited a 2019 email translated from Chinese in which Gong remarked that he "took a risk" by traveling to China to participate in the Talent Programs because he worked for "an American military industry company" and thought he could "do something" to contribute to China's "high-end military integrated circuits."
CBS News
22-07-2025
- CBS News
Former engineer pleads guilty to stealing missile tracking blueprints from Southern California company
A former engineer at a Southern California company pleaded guilty to stealing the blueprints of missile tracking systems used by the U.S. military. In his agreement to plead guilty to one count of theft of trade secrets, Chenguang Gong admitted to transferring more than 3,600 files from the Los Angeles-area research and development company where he had briefly worked to his personal storage devices, according to the U.S. Department of Justice. He faces a maximum sentence of 10 years in federal prison. His sentencing hearing is scheduled for Sept. 29. The Justice Department said the files included blueprints for space-based systems designed to detect nuclear missile launches and to track ballistic and hypersonic missiles. The files also included blueprints for sensors designed to enable U.S military aircraft to detect incoming missiles. Federal prosecutors said the unnamed company hired Gong as a manager responsible for designing, developing and verifying the sensors in January 2023. He began transferring files from his work laptop to his three personal hard drives on March 30, 2023, and continued until he was fired nearly a month later, according to the DOJ. About 1,800 files were downloaded after he had accepted a job with one of the company's competitors, according to federal prosecutors. The files also included plans for sensors designed to detect "low observable targets," an industry term that includes stealth aircraft, drones and radar-evading cruise missiles. Investigators also claimed that between 2014 and 2022, Gong submitted numerous proposals to "Talent Programs" created by the Chinese government. The Justice Department stated that some of the plans he submitted to the Chinese government included designs from defense contractors that employed him.
Phone Arena
21-07-2025
- Business
- Phone Arena
Trouble for BOE? Trade ruling could shake up Apple's display supply
Recently, it was reported that BOE was working hard to win Apple's favor for OLED iPhone production back, but now it seems things may not turn out in BOE's favor. Not because of Apple, but because of an alleged violation of federal trade secret laws. A preliminary ruling issued by the U.S. International Trade Commission (ITC) ruled that the Chinese display maker could have violated federal trade secret laws, which could potentially force Apple to drop the company as an iPhone display supplier. Apparently, the ITC found that BOE and seven of its subsidiaries misappropriated Samsung Display's trade secrets in order to manufacture panels. This could be a violation of Section 337 of the Tariff Act. The commission proposed that BOE be banned from OLED imports and also that all existing U.S. inventories be removed from sale. If this ruling stands, Apple could be facing a significant supply chain disruption. BOE supplies around 20% of OLED displays for the iPhone 16 lineup. It has also built an annual capacity for 100 million iPhones. Now, the company has even made a dedicated facility in the province of Sichuan specifically for Apple... BOE entered the iPhone display market with the iPhone 12. It didn't exactly have a smooth ride so far, and the quality of its components has been previously criticized by Apple. But it did have a portion of display orders alongside LG and Samsung Display. The ITC is expected to issue a final ruling in November. Then, there will be a 60-day presidential review. But it's not looking very positive for BOE, though. Analysts claim that these sorts of preliminary rulings are rarely overturned. Nevertheless, we'll know eventually. Meanwhile, existing Apple devices that have already been imported to the U.S. are not going to be impacted by the ITC ruling, even if it doesn't rule in favor of BOE. However, these legal risks could make Apple reconsider how much it depends on BOE. Likely, if there is an import ban in effect for BOE panels, Samsung and LG would likely absorb BOE's iPhone panel orders. Image Credit - PhoneArena This is not the only instance of Samsung and BOE arguing legally. The two companies now have six active cases against each other, actually: five patent infringement suits and the trade secret case. BOE filed its second patent lawsuit in two months against Samsung's Galaxy line, including phones like the Galaxy Z Fold 5, Z Fold 6, and even the flagship beast Galaxy S25 Ultra. BOE has asked the court to ban these products in the U.S., and is also demanding full legal cost compensation. For everyday iPhone users, this situation could have some impact, but it might not be immediate. If Apple has to stop using BOE's displays, it will likely turn to other suppliers like Samsung and LG. This switch could lead to higher production costs, which might make future iPhones more expensive (potentially). There's also a chance that supply could be tighter for a while, causing delays or limited availability of certain models. However, Apple is experienced at managing its supply chain, so most users probably won't see major changes right away. Still, it's something to keep an eye on, especially if you're planning to buy a new iPhone soon.I personally think that situations like this highlight just how complicated the global tech supply chain really is. On one hand, one has to protect intellectual property. On the other hand, if the ruling goes through, it could create an effect not just for BOE, but for Apple and buyers as well – it could lead to shipment delays, for one. It's going to be interesting to see how Apple responds, and whether Samsung and LG can smoothly pick up the slack if BOE gets sidelined.
WIRED
18-07-2025
- Business
- WIRED
Apple Sues the YouTuber Who Leaked iOS 26
In a lawsuit filed against prominent leaker Jon Prosser, Apple alleges a conspiracy to break into a development device and steal its trade secrets. Prosser insists Apple has it all wrong. iOS 26 is displayed on the Apple iPhone. Courtesy of Apple Leaks are a constant part of big product news cycles, particularly for companies like Apple. Online soothsayers like Jon Prosser and Bloomberg's Mark Gurman have long predicted the content of upcoming Apple announcements, citing anonymous sources from within the company to glean glimpses of what's next. They have been correct often enough to become a real pain for the Cupertino company. Now, Apple has seized upon an opportunity to fight back against leaks. In a complaint filed Thursday in US federal court for the Northern District of California, Apple is accusing prominent leaker Jon Prosser of allegedly scheming to 'break into an Apple development iPhone, steal Apple's trade secrets, and profit from the theft.' The suit alleges that, along with a coconspirator, Prosser, who makes videos on the YouTube channel Front Page Tech, deliberately took advantage of an Apple employee named Ethan Lipnik who had access to a developer iPhone running the as-of-yet unreleased software that would become iOS 26. The suit alleges that the other defendant, Michael Ramacciotti, who was staying at Lipnik's home at the time, waited for Lipnik to leave before accessing the development phone and showing details of the unreleased software to Prosser over a video call. Prosser then allegedly used information obtained in that early peek at iOS in videos that he posted on his YouTube channel well before Apple officially announced the updates. The suit also alleges that Ramacciotti claims Prosser masterminded the whole plan, promising Ramacciotti he would 'find out a way for [Mr. Ramacciotti] to get payment.' Prosser has denied any wrongdoing, and says the details of the suit are incorrect. In public posts on X, Prosser has maintained that this was not how things went down on his end. 'The details that Apple was given are just not accurate,' Prosser wrote to me via a direct message on X. 'I had no knowledge of how the info was obtained. He never told me he 'needed money' and I absolutely did not instruct him to act this out.' Prosser doesn't deny that he did reveal the information gleaned from Ramacciotti. He highlighted the details about the unreleased update in a series of videos earlier this year, including one in which he called the news, 'the biggest iOS leak ever.' Despite the question of how he actually acquired the information, the aftermath has been messy. Ethan Lipnik, the Apple employee who had the development phone that Ramacciotti is alleged to have accessed, was fired by the company. According to the complaint, Apple ended Lipnik's employment 'for failing to follow Apple's policies designed to protect its confidential information, including development devices and unreleased software and features.' Apple has not responded to requests for comment. Ethan Lipnik has also not responded to a request for comment. 'It's quite a significant lawsuit,' says Anshel Sag, principal analyst at the tech research firm Moor Insights & Strategy, in an email. 'But I also believe that there is quite a disparity between what Prosser is saying and what Apple alleges, especially since the employee seemed to not be aware of what was going on.' The biggest problem being alleged here, Sag says, is that while the data was taken from a development device that should have been better protected, how that data was acquired and where it came from should have been vetted before the details were put out into the world. 'Ultimately, every company fights leaks, especially Apple, but with this happening entirely in the US the company has a lot more power and laws to support its efforts,' Sag says. Many Apple leaks have historically come from sources outside the US, such as from within its manufacturing and supply chain partners in Asia. Because the complaint focuses on events that allegedly took place in California, Apple can argue in federal court that two US laws—the Defend Trade Secrets Act and the Computer Fraud And Abuse Act—have been violated. Prosser says he didn't even find out about the lawsuit until reading a MacRumors story about the filing. 'I feel awful that Ethan was terminated over this,' Prosser says. 'I wish he had shared with Apple what had occurred and I wish that Apple would have connected with me for more answers—I would have gladly chatted with them.'
Yahoo
18-07-2025
- Yahoo
Apple sues YouTuber over iOS 26 leak, says he had a friend unlock an employee's phone
In a lawsuit, Apple says a YouTuber commissioned a friend to break into Apple employee's phone. Jon Prosser leaked new features of iOS 26 months before WWDC. Prosser said he "did not 'plot' to access anyone's phone and was unaware of the situation playing out." In January, YouTuber Jon Prosser began showing off early renderings of Apple's iOS 26 on his channel, FrontPageTech. First was a redesigned camera rendering. In March, he teased Apple's "liquid glass" redesign, before giving a more thorough look in April. In a lawsuit filed Thursday, Apple says Prosser's leaks were ill-begotten. Apple sued Prosser and another man, Michael Ramacciotti, for misappropriation of trade secrets. Prosser denied Apple's recounting of the events in an X post. In the lawsuit, Apple says it received an anonymous tip linking Prosser's leaks to Ethan Lipnik, a software engineer at Apple from 2023-2025. Apple said it received the tip on April 4, months before the software debuted at WWDC, the company's annual conference where it launches products. Apple alleged that Prosser commissioned Ramacciotti to break into Lipnik's development phone. Ramacciotti was a friend of Lipnik's, the suit says. Apple says that while Ramaciotti was staying at Lipnik's house, he waited for his friend to leave, obtained the password for his device, and made a video call to Prosser showing off the features. Apple alleged that Prosser then screen-recorded the video call, recreating the features in new renderings and publishing his copies on YouTube. Apple also says in the lawsuit that Prosser showed the video to other individuals, one of whom noticed Lipnik's apartment in the background, causing them to tip off the company. "Apple takes great care to protect the secrecy of its unreleased products and features," the lawsuit reads. "These safeguards can only go so far to protect against bad actors determined to steal Apple's trade secrets." Apple says in the lawsuit that it has since terminated Lipnik's employment. Apple did not respond to a request for comment from Business Insider. Prosser, Ramacciotti, and Lipnik did not respond to email and social media messages seeking comment. Lawyers for Prosser and Ramacciotti have not yet been identified on the court docket. "This is not how things went down on my end," Prosser wrote in response to a MacRumors story about the lawsuit on X. "For the record: I certainly did not 'plot' to access anyone's phone and was unaware of the situation playing out." In its lawsuit, Apple asked the court for unspecified damages and an order preventing Prosser from disclosing other unreleased trade secrets that could have been on the device. Read the original article on Business Insider Solve the daily Crossword
