Former employees decided that stealing trade secrets is a good way to make money

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Federal prosecutors in New York have charged Canadian Klaus Pflugbijl, 58, and Chinese Yilong Shao, 47, with conspiring to pass on trade secrets to Tesla. Pflugbijl was arrested Tuesday morning on Long Island. The man was sure that he was going to a meeting with buyers to discuss the deal, but undercover agents were waiting for him on the spot.

According to the indictment, the stolen technology relates to high-speed battery assembly lines for electric vehicles using proprietary technology owned exclusively by Tesla.

Both defendants previously worked for the Canadian company Hibar Systems, which developed the system. However, in 2019, Tesla acquired Hibar Systems, becoming the sole copyright holder.

After being laid off in mid-2020, Pflugbale and Shao founded their own company in China, which produces similar assembly lines using other people's drawings. Subsequently, their business expanded to Canada, Germany and Brazil.

According to the prosecutor's office, Pflugbale and Shao's company openly uses Tesla's trade secrets, which cost the company millions of dollars for research and development.

If the perpetrators are found guilty, they face up to 10 years in prison. At the moment, Yilong Shao's whereabouts are unknown.

The case is being investigated jointly by the US Department of Justice and the FBI. Prosecutors emphasize the seriousness of the offense in the form of theft of valuable trade secrets.

• Source: https://www.nytimes.com/2024/03/19/business/tesla-trade-secrets-us-attorney.html
 
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