Former Ford Employee Admits Theft of Trade Secrets

We're not sure how many of you remember Xiang Dong Yu, so here's a quick sum-up: back in October last year, the Chinese national was arrested on charges of trade secrets theft from its former employee, Ford, apparently in favor of a Chinese manufacturer identified as BAIC.

Now, a little over a year since his arrest, Yu, former product engineer for Ford, pleaded guilty in federal court to two counts of theft of trade secrets, causing the American carmaker a loss of more than $50 million. Yu now faces 63-78 months' imprisonment and a $150,000 fine, according to the plea agreement signed with the United States Attorney for the Eastern District of Michigan. The sentence will be announced on February 23, 2011.

"We will vigilantly protect the intellectual property of our U.S. automakers, who invest millions of dollars and decades of time in research and development to compete in a global economy. Those who do not play by the rules will be brought to justice," said Barbara L. McQuade, United States Attorney for the Eastern District of Michigan.

Yu apparently was quite a busy employee when working for Ford's China division and admitted to have stolen several of the carmaker's technology specifications, They include design specifications for the Engine/Transmission Mounting Subsystem, Electrical Distribution system, Electric Power Supply, Electrical Subsystem and Generic Body Module.

"Michigan, as well as the rest of the United States, is significantly impacted by the auto industry. Theft of trade secrets is a threat to national security and investigating allegations involving theft of trade secrets is a priority for the FBI. The FBI will continue to aggressively pursue these cases," added FBI Special Agent Andrew G. Arena.