Trial of 'economic spies' for Chinese government began this week

Two Silicon Valley engineers are on trial for being economic spies for the Chinese government. This is only the second case in US history to go to trial under provisions of the 1996 Espionage Act. Economic espionage or start-up company?

Lan Lee, 44, and Yuefei Ge, 36, went on trial this week in California "on charges that they were economic spies for the Chinese government" reports UPI. The San Jose Mercury News described them as "Spies in the heart of Silicon Valley." The two engineers allegedly stole trade secrets from Taiwon Semiconductor, and NetLogic Microsystems in Mountain View, California. Lee, of Palo Alto, and Ge, of San Jose, are also charged with violating the 1996 Espionage Act. On Wednesday, opening statements were heard by a federal jury in San Jose. According to UPI, Assistant U.S. Attorney Matthew Parrella told a jury that Lee and Ge:

Intended to sell NetLogic computer chip designs to a Chinese venture backed by the country's military. There is no doubt about it. They planned to build, market and sell in China the chip that is a direct competitor.

Further, according to the San Jose Mercury News, Parrella told jurors that a "treasure trove" of evidence would be presented by the government, "including e-mails and material found on their home computers linking them to business plans with China and its venture capital arm, known as the '863 program.'" In his opening statement, defense attorney August Gugelmann was quoted by UPI as saying:

This case isn't really about economic espionage, it's not about spying and it isn't about stealing trade secrets. What this case is really about is our clients wanting to start a company of their own based on their own ideas, their own design.

It is a crime, under the 1996 Espionage Act, to steal technology to aid a foreign government. The case against Lee and Ge is only the second in the nation to go to trial under the Espionage Act. The first involved a former Boeing and Rockwell International engineer who illegally shipped trade secrets to China. The engineer was convicted in a federal court in Santa Ana this summer. The espionage trial is expected to last approximately three weeks.