The Mercury News Weekend

6 Fitbit employees charged with stealing trade secrets

Defendants face accusation­s of violating confidenti­ality agreements with competitor

- ByAnnie Sciacca asciacca@ bayareanew­sgroup.com Contact Annie Sciacca at 925-943-8073.

SANJOSE » Six current and former Fitbit employees were charged in a federal indictment Thursday filed in San Jose for allegedly being in possession of trade secrets stolen from competitor Jawbone, according to informatio­n from the Department of Justice.

T he indic tment charges the six people — Katherine Mogal, 52, of San Francisco; Rong Zhang, 45, of El Cerrito; Jing QiWeiden, 39, of San Jose; Ana Rosario, 33, of Pacifica; Patrick Narron, 41, of Boulder Creek; and Patricio Romano, 37, of Calabasas — with violating confidenti­ality agreements they had signed as former employees of Jawbone after they accepted employment with Fitbit, according to an announceme­nt from Acting U. S. Attorney Alex G. Tse and Homeland Security Investigat­ions Special Agent in Charge Ryan L. Spradlin

San Francisco- based companies Fitbit and Jawbone were competitor­s in making wearable fitness trackers until Jawbone went out of business in 2017.

Each of the defendants worked for Jawbone for at least one year between May 2011 and April 2015, and had signed a confidenti­ality agreement with the company, according to the Department of Justice.

Some of the defendants received offers of employment from Fitbit while they still worked at Jawbone and quickly left Jawbone to work there, while one of them accepted employment from Fitbit months after resigning from Jawbone.

“Intellectu­al property is the heart of innovation and economic developmen­t in Silicon Valley,” Tse said in the news release. “The theft of trade secrets violates federal law, stif les innovation, and injures the rightful owners of that intellectu­al property.”

If convicted, the defendants face a maximum sentence of up to 10 years imprisonme­nt and $250,000 fine per count, followed by a maximum three years supervised release, according to the news release.

“While we live in a free market economy, HSI is committed to ensuring employees are playing fair and within the limits of the law,” said Spradlin, who is the SpecialAge­nt in Charge for northern California and northern Nevada. “HSI has devoted more than two years to investigat­ing these allegation­s of the theft of trade secrets. HSI considers these types of charges extremely serious, and is dedicated to safeguardi­ng against any illegal corporate practices adversely impacting other businesses.”

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