SiRF Technology Trade Secrets Stolen Over 7 Year Period and Used By Start-Up Company, Say Feds

The Silicon Valley Mercury-News is reporting that U.S. Secret Service agents arrested a man on suspicion of conspiracy, possession of stolen trade secrets, and foreign transportation of stolen property, prosecutors announced Tuesday.

Zhiqiang Zhang, who also goes by Michael Zhang, 41, was indicted by a federal grand jury in San Jose last week.

According to the indictment, Zhang stole technological trade secrets while working for SiRF Technology Inc. in San Jose from 2002 to 2009.

The company designed and developed software source code to be used as a platform for location-based services and applications for mobile phones and as an aided global positioning system to provide location-based services to wireless devices.

The suspect was responsible for developing the code. Prior to resigning from the company in 2009, Zhang allegedly recruited two other employees to work for him for his startup, Anywhere Logic Inc.

Prosecutors said the stolen code was used by the new company. The two employees, Xiaodong Liang and Yanmin Li, are now believed to be living in China.

Zhang faces up to 10 years in prison for each count of conspiracy, possession of stolen trade secrets and foreign transportation of stolen property.

He made his first court appearance Tuesday and was released on a $500,000 bond.