United States v. Kolon Indus., Inc.
By Suzanne Van Arsdale – Edited by Sounghun Lee
United States v. Kolon Indus., Inc., No. 3:12-Cr-137 (E.D. Va. Aug. 21, 2012)
Indictment hosted by legaltimes.typepad.com
The Department of Justice brought a criminal indictment against South Korea-based Kolon Industries Inc. (“Kolon”) and five of its executives in the Eastern District of Virginia on one count of conspiracy to convert trade secrets, four counts of theft of trade secrets, and one count of obstruction of justice.
According to the indictment, filed on August 21, 2012, Kolon and its executives engaged in years of corporate espionage. The government accused Kolon of paying former and current employees of E. I. du Pont de Nemours & Co. (“DuPont”) and Teijin Ltd. and its subsidiaries (“Teijin”) to reveal confidential and proprietary information related to the manufacture of synthetic fiber, in violation of the Economic Espionage Act of 1996 (the “Act”). Economic Espionage Act of 1996, Pub. L. No. 104–294, 110 Stat. 3488 (codified as amended at 18 U.S.C. §§ 1831–1839 (2006)).
The Wall Street Journal and Reuters provide an overview of the indictment. Bloomberg Businessweek noted that Kolon’s alleged theft of trade secrets has already resulted in a jury verdict awarding DuPont nearly $920 million and a prison sentence for a former DuPont employee who pled guilty to theft of trade secrets.