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Magic Leap claims ex-employee stole headset information to create Chinese copy

By midian182 · 9 replies
Jun 18, 2019
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  1. Bloomberg reports that the suit accuses Chi Xu, who left Magic Leap in 2016, of using confidential information to “quickly develop a prototype of lightweight, ergonomically designed, mixed reality glasses for use with smart phones and other devices that are strikingly similar” to the US firm’s designs.

    Xu, who founded his own Beijing-based company, showed off his AR glasses earlier this year. Magic Leap says he spent his time at the firm neglecting his work duties to steal information with the intention of launching a rival product. The lawsuit alleges breach of contract, fraud and unfair competition.

    Allegedly stealing company secrets and taking them to China isn’t a new phenomenon. Chinese national Xiaolang Zhang, who had worked in Apple’s autonomous car division, was arrested in July last year on his way to Beijing to get a job with electric/self-driving vehicle startup Xmotors. Apple investigators had found 40GB of the company’s confidential data on his wife’s laptop. In January this year, another Chinese citizen working for Apple was also charged with stealing autonomous car secrets.

    The US says Chinese firms have spent years stealing IPs from American companies—something that contributed to the current trade war. Last November, the Justice Department said it was clamping down on the practice by working alongside the FBI.

    Permalink to story.

  2. Uncle Al

    Uncle Al TS Evangelist Posts: 5,390   +3,779

    Just one more example of a long, long, long past of theft .....
  3. ckm88

    ckm88 TS Addict Posts: 166   +119

    I wouldn't doubt it. It happens all the time.
  4. fps4ever

    fps4ever TS Evangelist Posts: 305   +301

    This is one of the main reasons the new trade deal (with provisions for that) is needed but but we have a couple defenders here that claim US is bad, China good...
    ghostf1re, toooooot and psycros like this.
  5. ForgottenLegion

    ForgottenLegion TS Guru Posts: 414   +416

    US is bad.
    China is bad.

    Panda218 and Evernessince like this.
  6. Capaill

    Capaill TS Evangelist Posts: 894   +497

    US is bad. China is miles worse :)
    Countries would much prefer to deal with America as it behaves mostly sane (despite recent hiccups) and has a mostly fair legal system.
    I've been working in telecoms for over 20 years. I've seen how US companies handled "reconstruction" projects in Iraq and Afghanistan so they are no angels. But we've known since the early days how determined China is to copy every technology in sight and backward engineer it to their own benefit. Whenever we saw a Chinese person on-site we'd hide all the documents! They've always been a massive threat to Western telecoms companies and nobody has done anything about it until now. So yes, I'm not an American but, when it comes to the Chinese and telecoms, I'm all for Trump.
    I never thought I'd back him on anything. Excuse me while I puke.
    ghostf1re and psycros like this.
  7. fps4ever

    fps4ever TS Evangelist Posts: 305   +301

    Better for who? Where did the big bad US of A touch you inappropriately?
    ghostf1re and psycros like this.
  8. psycros

    psycros TS Evangelist Posts: 2,715   +2,514

    Never forget it was the management of all these tech firms that sent their crown jewels to China in the first place. They handed their IP to slave labor operations on a silver platter, their unreal arrogance making them believe China would be happy with only being cheap labor for the west. But that wasn't enough - they wanted to replace all the well-paid native tech professionals with H1B wage slaves whose loyalty is with a totalitarian state that trains most of their tech pros how to spy. Wall Street and Silicon Valley created this monster just like they empowered most of America's other enemies.
    Capaill and toooooot like this.
  9. toooooot

    toooooot TS Evangelist Posts: 820   +403

    Just for that, they deserved it.
  10. ghostf1re

    ghostf1re TS Guru Posts: 414   +265

    Yeah so that makes it ok to steal IP? You're delusional if this is how you think. No one is forcing China to work for low wages. The entire reason countries do business with them is because of how cheap it is. We didn't just kick China's door in and tell them we're only paying this much. The Chinese want us there because we bring them money. It's really that simple. If they didn't need us, they would take their business elsewhere.
    fps4ever likes this.

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