An anonymous reader shares a report: When three Chinese nationals were jailed in Beijing almost a decade ago and accused of selling fake Hewlett-Packard networking gear, it looked like an example of U.S. companies getting what they’d long demanded: aggressive protection of intellectual property in the world’s most populous nation. A drawn-out court case heading to trial in Massachusetts paints a much muddier picture. The three, exonerated in China, accuse the former Silicon Valley icon of setting them up. They argue that it was H-P units that conspired to sell counterfeit gear, and then pinned the blame on them. H-P disputes the claims, and is asking a U.S. federal judge to dismiss the lawsuit, saying the story was concocted by Integrated Communications & Technologies Inc., the Massachusetts-based company that employed the three Chinese nationals, to cover up its own criminal behavior. U.S. District Judge Leo T. Sorokin may rule on the dismissal request at any time. If he lets the case continue, a trial is scheduled for February.
Western companies have been calling on China for years to combat counterfeiting and take action against those that steal their intellectual property. One of the triggers for former U.S. President Donald Trump’s trade war was the technology industry’s lobbying of the American government to help protect their IP. A loss for either side in the lawsuit would tarnish its reputation in the world’s largest market for computers by marking them as an organization that fraudulently sold counterfeit goods. The Office of the U.S. Trade Representative identified China as the “primary source” of counterfeit goods in a 2020 report. With Hong Kong, the document details, China accounts for 92% of the value of fake goods seized by U.S. Customs and Border Protection in 2019. In this case, the networking gear was made by an affiliate of H-P’s in China, exported to India on lease, then sold back into the Chinese market.
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