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Huawei Technologies is a losing trade secrets suit against the U.S. chip designer

A FILE PHOTO of A Huawei logo, and your company will be seen at a shopping mall in Shanghai, China, June 3, 2019. The photo was taken on June 3, 2019. (REUTERS photo/Aly Song, File/Photo

(Reuters) – A U.S. jury on Wednesday cleared California’s semi-conductor designer, CNEX Labs, Inc., of stealing trade secrets from the Chinese electronics colossus Huawei Technologies.

Huawei was accused of CNEX, in the U.s. District Court in Sherman, Texas, for the misuse of a trade secret, a memory, a control technology, and the poaching of their employees.

The United States has, in effect, prohibited companies from doing business with Huawei, saying the company poses a threat to U.S. security.

A Huawei spokesman said the company was considering the next steps after the ruling, in Texas, and declined to comment further.

CNEX had countersued, accusing Huawei of improperly gain access to its trade secrets by posing as a potential customer, from the memory, and the control system.

The eight-person jury does not award CNEX any loss or damage, as it did not have any income, and a CNEX spokesman said. Huawei’s suit was an attempt to make the acquisition of “CNEX-the advanced semi-conductor technology” by means of a court action, it said, CNEX, spokesman for Paul Sherer.

Huawei was accused of CNEX, and is a co-founder, He Huang, in 2017, and was looking forward to, at least $85.7 million in damages and the rights to the San Jose, Calif., company, memory, and control.

“The things that Huawei claims to be its trade secret, not like that,” CNEX’s lawyer Deron Dacus said in court at the start of the trial earlier this month. He described the process as “bullying and intimidation.”

U. s. District Judge Amos Mazzant, who is heard in the trade secrets case is to monitor Huawei’s bid to overturn the Trump administration, a ban on the sale of products to government agencies and contractors.

Report by Gary McWilliams; Editing by Sandra Maler and Tom Brown

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