Operational & Commercial Performance: Investigation and Correction of Employee Trade Secrets Theft

RISK MANAGEMENT:

INVESTIGATION AND CORRECTION OF EMPLOYEE TRADE SECRETS THEFT

RISK MANAGEMENT: INVESTIGATION AND CORRECTION OF EMPLOYEE TRADE SECRETS THEFT

BACKGROUND

    • A manufacturer of specialty chemicals had lost 70% of company customer base due to TS theft
    • The previous Operations Director in China had removed electronic drawings and other IP over a 2-year period, set up a competing company and bribed the purchasing managers to move their purchases to his new company.
    • EWA was engaged to investigate the claim and develop counter-actions
RISK MANAGEMENT: INVESTIGATION AND CORRECTION OF EMPLOYEE TRADE SECRETS THEFT

APPROACH

RISK IDENTIFICATION

    • Investigation and confirmation of the existence of the new company and the individual’s equity ownership
    • EWA obtained product samples and verified a trademark violation

Risk Mitigation

    • Recruitment of local Chinese attorneys and the filing of a legal claim against both the company and the individual
    • The competitive office, workforce, sub-contractors and customer base visitors were investigated
    • EWA contacted the client’s original customer base to inform them of the various illegal actions and acts of corporate espionage
    • Legal proceedings cannot be disclosed due to confidentiality restrictions
Step 3

Long-Term Risk Prevention

    • Development of a comprehensive asset protection program
RISK MANAGEMENT: INVESTIGATION AND CORRECTION OF EMPLOYEE TRADE SECRETS THEFT

RESULTS

    • 75% of the lost customer base returned to the client within 7 months
    • No new acts of corporate espionage or theft
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