[Asia Economy Yeongnam Reporting Headquarters, Reporter Kim Yong-woo] A case suspected of leaking trade secrets and technology as employees from a company moved to a competitor is now under police investigation.
On the 13th, SNT Motive, the largest automotive parts manufacturer in the Busan area, announced that it had filed a complaint with the police against competitor company A for allegations including trade secret and technology leakage related to vehicle motor development.
According to SNT Motive on the 13th, a complaint was submitted to the Busan Metropolitan Police Agency naming three executives and employees who took trade secret materials such as technical documents when moving to the competitor, as well as the competitor company and its CEO as defendants.
SNT Motive filed charges against them for breach of trust in the course of business and violations of the Unfair Competition Prevention and Trade Secret Protection Act (trade secret disclosure), and the truth is expected to be determined through police investigation.
This case was previously reported in the media amid suspicions that researchers from SNT Motive’s motor development team leaked trade secret materials when moving to company A.
Additionally, a whistleblower reported that company A even approached SNT Motive’s partner companies to steal technology.
The whistleblower claimed that while working at company A, they were instructed to visit a company supplying vehicle motor parts to SNT Motive to check the ‘process and work standards.’
Furthermore, the whistleblower stated that when an executive from company A accompanied them along with a representative from another SNT Motive partner company, they requested to borrow about 60 component assembly devices used on the production line and asked to film the production line.
At that time, the whistleblower followed the instructions, visited the company, took photos and videos, and sent them, and testified that they received related parts and brought them to company A.
All partner companies supply motor parts to SNT Motive and have signed a ‘Basic Transaction Agreement’ with SNT Motive.
According to Article 16 ‘Confidentiality’ of the ‘Basic Transaction Agreement,’ it is clearly stated that ‘technical data, industrial property rights, know-how, and other related business or technical confidential matters must not be disclosed to third parties.’
Also, SNT Motive revealed that it secured email evidence showing that one researcher who moved to company A shared materials they had prepared while working at SNT Motive with researchers at company A.
The email reportedly contained requests such as ‘Do not back up the file and delete it’ and ‘Check the email and delete it afterward,’ despite the sender being the author of the materials.
The ‘bad relationship’ between the two companies dates back to 2012. At that time, not a competitor, the son of company A joined SNT Motive under a military service exemption, completed his service, and left in 2015. Since 2017, resignations of motor development and automotive parts researchers from SNT Motive have surged.
Starting with three in 2017, six in 2018, and twelve from 2020 to the present, a total of about 20 team leaders, researchers, and engineers related to motor development and automotive parts have moved en masse to company A.
Company A established a subsidiary, B, for its electric vehicle motor business and transferred the transferees there.
Company A claims that the technology they develop and apply differs from SNT Motive’s motor technology. They also state that the hired technicians were recruited through open or normal hiring processes without any intention to steal trade secrets or technology.
On the other hand, SNT Motive asserts that regarding hairpin (rectangular wire) and WRSM (wound rotor synchronous motor) technologies, the hairpin technology was developed by SNT Motive between 2009 and 2010 for the GM Volt electric vehicle, with delivery and performance verification completed.
They also claim that the WRSM technology was completed by SNT Motive in early 2013, and many team leaders and employees involved in the development moved to company A, leading to the leakage of the technology.
An official from SNT Motive’s Management Support Headquarters said, “As the next-generation parts market, including motors for eco-friendly vehicles, rapidly expands, unethical methods such as poaching personnel and infringing on trade secrets to acquire intellectual property rights?trade secrets built over 30 years through the blood and sweat of countless employees?without any compensation are being carried out.”
SNT Motive stated, “We have taken legal action after sufficient legal review to protect trade secrets, intellectual property rights, and the interests of customers and shareholders.”
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