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Kaedar Electronics’ Parent Company Suspends a Manager Accused of Paying Kickbacks to Apple Employee in Misappropriation of Trade Secrets Case

In Criminal Theft of Trade Secrets, Fun with Trade Secrets, International on August 18, 2010 at 5:17 am
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Ting-I Tsai of The Wall Street Journal reports that Pegatron Corp., the parent company of Kaedar Electronics Co., said it had suspended a manager who has been accused of paying kickbacks to Paul Devine, an Apple employee.  Pegatron says it is now investigating whether the manager violated the company’s code of conduct.  The company is reportedly working on an iPhone for a second mobile standard for Apple.

Neither Pegatron Corp. nor Kaedar Electronics Co. were named as defendants in the civil suit filed by Apple Inc. on Friday.

If Apple truly believed that confidential information and trade secrets were misappropriated by Devine and Kaedar Electronics, one would expect that Kaedar would be brought in as a party.  But even if Apple intended to pursue a suit against Kaedar or any of the other companies named in its complaint, there may be service of process delays in reaching foreign companies.

Apple might be anticipating that Devine will bring a motion to stay the civil case while the criminal case is proceeding.  Or Apple might be waiting to ride the discovery coattails of the prosecutor’s office: the companies named in the complaint may cooperate with the U.S. Attorney, and Apple has the luxury of waiting to see what further evidence comes to light.

By CHARLES H. JUNG

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