A concept picture of chip Photo: VCG

The verdict in the case of Zunpai Communications Technology Co infringing on chip technology trade secrets of HiSilicon, a semiconductor company wholly owned by Huawei, has taken effect, after none of the 14 defendants appealed within 10 days, CCTV News reported on Wednesday, citing the department specializing in intellectual property rights at the Supreme People's Procuratorate (SPP).

The verdict was issued on July 28, and the stolen technical information is valued at about 317 million yuan ($44.2 million), according to the CCTV News report.

The judgment found that 14 Zunpai employees illegally obtained core Wi-Fi 6 chip technology from HiSilicon, their former employer, constituting the crime of trade secret infringement. The 14 individuals have received prison sentences and a total fine of 13.5 million yuan ($1.89 million). Zhang, founder of Zunpai and formerly HiSilicon's radio frequency chip development head, was sentenced to six years in prison as ringleader, fined 3 million yuan, and banned from engaging in the chip industry for five years, according to previous media reports.

Hisilicon took over Huawei's Wi-Fi chip development project launched in 2011. The company invested heavily in long-term independent R&D, acquiring key technical know-how for Wi-Fi chips and implementing robust confidentiality measures, the CCTV News report said.

HiSilicon, Huawei's wholly-owned subsidy, took over Huawei's Wi-Fi chip development project, which was launched in 2011. HiSilicon invested heavily in long-term independent R&D, acquiring key technical know-how for Wi-Fi chips and implementing robust confidentiality measures, the CCTV News report said.

According to corporate information platform Tianyancha, Zunpai, established in March 2021, specialized in Wi-Fi chip development, particularly chips for Wi-Fi 6.

In April 2024, a branch of the Shanghai Municipal People's Procuratorate filed a lawsuit against Zhang and 13 others for trade secret infringement. A judgment issued in July found that the 14 Zunpai employees had illegally obtained core Wi-Fi 6 chip technology from HiSilicon, their former employer, constituting the crime of trade secret infringement, according to media reports.

According to procuratorial authorities, this is a quintessential "insider" trade secret infringement case, presenting significant challenges. First, the case involved over 40 cutting-edge technical secrets, requiring the team to engage senior telecom experts for professional analysis, ensuring accurate legal judgments through rigorous cross-verification. Second, with 14 defendants linked to different infringements, the team meticulously distinguished each defendant's role and the value of the secrets involved.

An official from the department specializing in intellectual property rights at the SPP said that trade secrets are important intellectual property rights in the modern economy and society, and they are not only related to the security of core technologies of enterprises, but also to the high-quality development of the country, according to the CCTV News.

In recent years, procuratorial authorities have continuously increased judicial protection of trade secrets, cracked down on crimes of infringement of trade secrets in accordance with the law, and used the power of the rule of law to serve innovation and development, the official is quoted by CCTV News as saying.

Global Times