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METI to set up panel to counter industrial espionage cases

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Staff
About 1 pages (318 words)

Kyodo World Service, April 19th, 2007

The Ministry of Economy, Trade and Industry plans to set up a panel to counter rising industrial espionage cases, Vice Economy, Trade and Industry Minister Takao Kitabata said Thursday.

Kitabata unveiled the plan in the wake of the arrest last month of a former Chinese employee of Denso Corp. on suspicion of taking out product design data from the automobile parts maker, a member of the Toyota Motor Corp. group.

''Japanese manufacturers' international competitiveness is backed by know-how and skills (cultivated) at the (production) scene,'' Kitabata said at a news conference after meeting with business leaders in the Chubu region in central Japan.

''We must prevent an unintended outflow (of corporate data or technology) that is not preventable under the current patent system,'' he said.

Kitabata said his ministry will promote legal studies over alleged industrial espionage, citing the fact that the government was unable to apply the Unfair Competition Prevention Law to the Chinese national's alleged espionage case.

''We must consider whether we can accept such a thing,'' he said.

On April 6, Nagoya prosecutors released Yang Luchuan, an engineer at Denso, based in Kariya, Aichi Prefecture, because investigators were unable to confirm why the data was taken and whether it was handed over to other people.

Denso dismissed Yang on April 17.

Yang was arrested March 16 for allegedly downloading to a company laptop more than 130,000 pieces of product design data from a company database from October to December last year and taking the laptop to his home in February this year, in what police said was an alleged embezzlement.

Police decided to arrest Yang on that day even though they wanted more time to conduct their probes because they had realized that Yang would soon return to China.

Yang has admitted to taking out the company-owned laptop to ''study and work at home,'' but denied handing the data to other people, according to police.

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Staff. METI to set up panel to counter industrial espionage cases. Copyright 2007  Kyodo World Service.

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