In today’s fast-paced commercial landscape, as technology continues to evolve rapidly, protecting trade secrets has become increasingly vital.
A recent high-profile case involving the theft of Google’s AI trade secrets highlights the importance of having strong intellectual property strategies, especially for companies in the tech sector.
Theft of Google’s Trade Secrets
The case in question involves a former Google software engineer, Linwei Ding, who was charged in February for stealing proprietary AI technology from Google to aid two Chinese tech companies.
Ding was indicted by a federal grand jury in San Francisco on seven counts of trade secret theft and seven counts of economic espionage. It is alleged that between May 2022 and May 2023 Ding uploaded over 1,000 confidential files to his personal cloud account from Google’s network. The files included details and information relating to Google’s processing systems, software designs, hardware infrastructure and cutting-edge AI workloads, all of which were considered by Google as information that gave it a ‘competitive edge’ over its major rivals.
During his employment at Google, Ding allegedly spent several months working in a senior role in Beijing Rongshu Lianzhi Technology, a Chinese start-up, and also founded his own AI company Shanghai Zhisuan Technology. It is claimed that Google was not informed of his involvement in these companies. It is alleged that
What are Trade Secrets?
Trade secrets are valuable, confidential business information or processes that give a company a competitive edge. These can include formulas, practices, designs, strategies, customer lists, manufacturing processes, or any other proprietary knowledge that is not generally known or easily accessible. To be considered a trade secret, the information must be kept secret and the company must take reasonable measures to protect its confidentiality.
Trade secrets are, therefore, often a crucial element of a company’s intellectual property portfolio. Their unauthorised acquisition, use, or disclosure can lead to severe consequences for businesses, such as a loss of competitive edge, financial losses, and damage to reputation.
Berry Smith comment – Key Takeaways
This case, which involves the theft of AI technology from Google, highlights the importance of safeguarding valuable intellectual property.
It goes without saying that businesses should invest in thorough security measures to safeguard their trade secrets. This involves implementing both physical and digital security protocols, including encryption, access controls, and regular security audits. It is essential to ensure that only authorised individuals have access to sensitive information.
It is also important to implement robust legal protections. This includes the use of Non-Disclosure Agreements (NDAs) which legally bind individuals, such as employees, contractors, or business partners, to keep sensitive information confidential. By signing an NDA, the person agrees not to share, use, or disclose the company’s proprietary information without permission. This helps prevent unauthorised leaks or misuse of trade secrets, ensuring that the company retains its competitive advantage.
In the event of a breach, an NDA provides legal grounds for the company to take action, such as seeking damages or an injunction. Essentially, an NDA establishes clear boundaries and legal consequences, making it easier to protect valuable business information and hold individuals accountable if they fail to uphold confidentiality.
At Berry Smith, we specialise in drafting legally robust NDAs that protect our clients’ intellectual property. Contact our Commercial and IP team for expert advice on IP protection.