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Reuters

A US jury on Wednesday cleared California semiconductor designer CNEX Labs of stealing trade secrets from Chinese electronics giant Huawei Technologies while awarding CNEX no damages on its own trade theft counter claims.
Huawei had sued CNEX in US District Court in Sherman, Texas, for misappropriation of trade secrets involving a memory control technology and for poaching its employees.
CNEX filed a counter suit, alleging Huawei sought to steal its technology by posing as a customer and calling the original claims part of a pattern by Huawei to obtain others’ secrets.
The United States has effectively banned its agencies from buying Huawei telecommunications equipment and barred US companies from doing business with Huawei, claiming the firm represents a threat to national security.




Huawei has filed a suit to overturn the US sales ban before the same Texas judge who heard the trade secrets suit.
The company is reviewing the decision and considering its next moves, said Tim Danks, a Huawei vice-president for risk management.
The jury found that CNEX co-founder Yiren “Ronnie” Huang, who quit Huawei and co-founded CNEX days later, breached his employment contract requiring him to notify the company of any patents he obtained within a year of leaving the firm. However, it did not award Huawei damages.
Danks called the result a “mixed verdict”, noting the company “is disappointed that the jury awarded no damages after finding Mr. Huang breached his employment agreement”.
Singapore keeps options open on Huawei and 5G networks
Huawei had sued CNEX and co-founder Huang in 2017 and was seeking at least US$85.7 million in damages and rights to the San Jose, California, company’s memory-control technology.
“The things that Huawei claims are trade secrets are not,” CNEX lawyer Deron Dacus said in court at the beginning of the trial earlier this month. He further described the lawsuit as “bullying and intimidation”.
The eight-person jury did not award CNEX any damages in its trade theft claims because it did not have any revenue, a CNEX spokesman said. Huawei’s suit was an effort to acquire “CNEX’s advanced semiconductor technology” through a court action, said CNEX spokesman Paul Sherer.
US District Court Judge Amos Mazzant, who heard the trade secrets case, separately is overseeing Huawei’s bid to overturn the Trump administration’s ban on its sales to government agencies and contractors.


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Huawei loses trade secrets case against ex-employee Ronnie Huang’s US start-up CNEX

A Huawei logo is displayed during an event in Madrid, Spain, in May. Photo: EPA-EFE

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The Huawei logo is displayed during the 5G is On event in Madrid, Spain, on Wednesday. Photo: EPA-EFE

A CNEX Labs chip tray is pictured in this undated handout photo obtained by Reuters May 31, 2019. CNEX Labs/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. NO RESALES. NO ARCHIVE.

An engineer stands under a base station antenna of 5G in Huawei's SG178 multi-probe spherical near-field testing system at its Songshan Lake Manufacturing Center in Dongguan, Guangdong province, China May 30, 2019. Picture taken May 30, 2019. REUTERS/Jason Lee TPX IMAGES OF THE DAY

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Huawei Deputy Chairman Eric Xu. Photo: Huawei

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Jury finds that Huang – who quit Huawei and co-founded CNEX days later – breached his employment contract, but does not award Huawei damages
Chinese telecoms firm calls ruling a ‘mixed verdict’ and is considering its next move


Jury finds that Ronnie Huang – who quit Huawei and co-founded CNEX days later – breached his employment contract, but does not award Huawei damages.


Huawei loses trade secrets case against ex-employee Ronnie Huang’s US start-up CNEX

Jury finds that Huang – who quit Huawei and co-founded CNEX days later – breached his employment contract, but does not award Huawei damages Chinese telecoms firm calls ruling a ‘mixed verdict’ and is considering its next move

Jury finds that Huang – who quit Huawei and co-founded CNEX days later – breached his employment contract, but does not award Huawei damages

Chinese telecoms firm calls ruling a ‘mixed verdict’ and is considering its next move