Two Chinese companies and four individuals have been charged in a federal indictment for conspiring to unlawfully possess trade secrets from Philips Medical Systems. The indictment, returned in Chicago, accuses KUNSHAN GUOLI ELECTRONIC TECHNOLOGY CO. LTD., its vice president XIAOQIN DU, and others of forming a rival company in Aurora, Illinois, to exploit Philips' proprietary X-ray technology.
Philips operated a facility in Aurora that focused on the development of X-ray tubes used in CT medical imaging machines. The indictment claims that China-based Kunshan GuoLi and Du recruited former Philips employees CHIH-YEE JEN, FINCE TENDIAN, and VLADIMIR NEVTONENKO to work for the new company. Jen is accused of copying Philips’ trade secret information before leaving the company and using it at the rival firm.
According to the charges, Jen shared this information with Tendian and Nevtonenko, who allegedly used it in their work for Kunshan GuoLi and a related company, KUNSHAN YIYUAN MEDICAL TECHNOLOGY CO. LTD.
The two companies and four individuals face charges of conspiracy to unlawfully possess trade secrets. Jen faces an additional charge of possession or attempted possession of a stolen trade secret. All three former employees pleaded not guilty during arraignments in Chicago's federal court. Arraignments for the companies are pending, while an arrest warrant has been issued for Du.
Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, announced the indictment alongside Douglas S. DePodesta from the FBI's Chicago Field Office. Assistant U.S. Attorneys Kavitha Babu, Vikas Didwania, and Ramon Villalpando represent the government.
The public is reminded that an indictment does not equate to guilt; defendants remain presumed innocent until proven guilty beyond reasonable doubt.
