By means of an statement, the United States Department of Justice reported the ruling issued against Xiaorong You, also called Shannon You, a 59 year old chemist residing in Lansing, Michigan, accused of stealing trade secrets, as well as engaging in economic espionage and fraud.
According to the statement, the woman had access to trade secrets while working at The Coca-Cola Company and Eastman Chemical Company, those trade secrets were related to formulas developed by more than half a dozen US companies at a cost of more than 120 million dollars.
Particularly, the trade secrets were related to bisphenol A (BPA) free coating formulations for the interior of beverage cans. BPA was used to coat the inside of polycarbonate beverage cans and other containers to help minimize flavor loss and prevent the container from corroding and reacting with things inside. However, due to the potential health risks of BPA, companies have been seeking and developing BPA free alternatives, a costly and time-consuming process.
Due to the above, the ruling issued by a federal judge in Greeneville, Tennessee, determined a sanction equivalent to 14 years in prison, as well as three years of probation and a millionaire fine of $200,000 dollars
The judge also ruled that the trade secrets had been stolen to create a new coatings company in China. During the investigation, it was revealed that You not only intended to benefit its Chinese corporate partner Weihai Jinhong Group, but also the governments of China, Shandong province, Weihai city and the Communist Party of China, prosecutors said.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division added, “Today’s ruling reflects the seriousness of this crime, as well as the Justice Department’s commitment to protect the security of our nation by investigating and going after those who steal the intellectual property of American companies.”
On the other hand, the deputy attorney general, Kenneth A. Polite Jr., issued a warning to citizens, stating that this type of crime, which puts intellectual property, technological development, and innovations of the American business community at risk, would be prosecuted with severity.
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