Silicon Valley engineers on trial

Published: Oct. 23, 2009 at 1:48 AM

SAN JOSE, Calif., Oct. 23 (UPI) -- Two engineers in California went on trial this week on charges they were economic spies for the Chinese government.

Lan Lee, 44, and Yuefei Ge, 36, allegedly stole trade secrets from NetLogic Microsystems in Mountain View, Calif., and from Taiwan Semiconductor, the San Jose Mercury News reported. They are also charged with violating the 1996 Espionage Act.

Both prosecution and defense agree Lee and Ge were out to better themselves. Assistant U.S. Attorney Matthew Parrella told a jury in San Jose in his opening statement Wednesday they intended to sell NetLogic computer chip designs to a Chinese venture backed by the country's military.

"There is no doubt about it," he said. "They planned to build, market and sell in China the chip that is a direct competitor."

Defense lawyers said the two, like other Silicon Valley employees before them, hoped to start their own company to build and sell their own chip.

"This case isn't really about economic espionage, it's not about spying and it isn't about stealing trade secrets," August Gugelmann said. "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."

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