Tuesday, June 20, 2006, 6/20/2006 07:05:00 AM

More on California Chip Trade Secrets Case

From the New York Sun, a much more complete recounting of the California chip case so far. To recap, two California men, one a Chinese national, were arrested after a grand jury charged them with stealing trade secrets from their former employer, Net-Logic Microsystems, a California chip maker.

The Sun says that "China's effort to acquire secrets from Silicon Valley's high-tech industry is facing renewed scrutiny after federal prosecutors filed new charges of economic espionage in the high-stakes race to improve microchip design."
In the words of the US Attorney: "A tremendous amount of resources go into producing the chips and software that are designated as trade secrets, and we are committed to the prosecution of individuals who steal those trade secrets in an attempt to get an unfair advantage in the technology industry."

The new piece of the puzzle is that one of the defendant's home computer contained a contract for an investment from a company in the People's Republic.

Expect to see more scrutiny on the Chinese and heightened concerns about economic espionage in the US.

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