Who stole the code?

Hi folks,

US authorities arrested Jiaqiang Xu, 29 former software engineer for IBM Corp in China for allegedly stealing proprietary source code from his former employer, prosecutors announced on Tuesday.

In the federal court in White Plains, New York, he was charged with a criminal complaint with one count of theft of a trade secret. He was also  accused of trying to sell the stolen code to other companies.

An undercover officer at  White Plains hotel has arrested him and has captured a recording of him saying he used the code to make software to sell to customers.

“Theft of trade secrets of the type alleged against Xu drains the lifeblood of innovation and competition, and is rightly a serious federal crime,” Manhattan U.S. Attorney Preet Bharara said in a statement.

The complaint did not identify IBM by name but a LinkedIn profile for Xu said he was employed as a system software developer at IBM during the period in question. And the source code was found to be related to proprietary software and facilitates faster computer performance

In 2010 Xu, has started working at IBM in China in 2010, had full access to the source code before voluntarily resigning in May 2014, prosecutors said.

The complaint states that, in 2014 the FBI received a report that someone in China was claiming to have access to the code and using it for business ventures. Following this, an undercover law enforcement officer posing as an investor seeking to start a data storage company contacted Xu.

Xu, sent his resume to the officer and emailed another officer about his past experience with the proprietary software and attached some sample code from his prior job. Xu has also told them that he could provide his company the code to develop its own data storage system.

After Xu offered to remotely install the proprietary software, the FBI  arranged for a computer network to be set up to his specifications to do so in August. And then identified a functioning copy of the software.

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So yes stealing code is a crime…


Source: Akati

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