On January 18, 2018, Xu Jiaquiang was sentenced to five years in prison by U.S. District Judge Kenneth M. Karas of the Southern District of New York.  Xu pled guilty on May 19, 2017 to economic espionage and theft of a trade secret, in connection with Xu’s theft of his former employer’s proprietary source code, with intent to benefit the People’s Republic of China.  According to the charging documents, from November 2010 to May 2014, Xu was employed as a developer for a U.S. company (the “Victim Company”).  In that position, Xu had access to certain proprietary software (the “Proprietary Software”) developed and marketed by the Victim Company to boost computer performance, as well as the software’s underlying code (the “Proprietary Code”).  After Xu voluntarily resigned from the Victim Company, he began communicating with undercover law enforcement officers, whom Xu believed were looking to start a large data storage technology company.  Xu subsequently informed one of the undercover law enforcement officers that he was willing to consider providing a copy of the Proprietary Code to facilitate the development of the company’s data storage system.  Without the Victim Company’s authorization, Xu uploaded a functioning copy of the Proprietary Software onto a computer network that he believed belonged to the data storage technology company.  The computer network had actually been set up by the FBI as part of the undercover investigation.  United States v. Xu, No. 7:16-cr-00010 (S.D.N.Y)

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