Lee, a native of Taiwan, worked in research for Avery, an adhesives manufacturer. When Lee was visiting

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Lee, a native of Taiwan, worked in research for Avery, an adhesives manufacturer. When Lee was visiting Taiwan, he was approached by Yang and his daughter about providing information to their Taiwanese adhesives company.
Lee agreed and was paid $25,000 per year for confidential information from Avery about new products. When the arrangement was uncovered, the FBI confronted Lee, who agreed to participate in a sting operation to help arrest and prosecute Yang. When the Yangs visited the United States, Lee met with them and discussed confidential information. The meeting was filmed. The Yangs were arrested, convicted, and fined $5 million. They appealed, contending the materials used in the sting operation were not actual trade secrets, so they could not have violated the law.

1. The appeals court held that the Yangs conspired to buy information they believed to be trade secrets, which is a criminal offense. How could Avery prove the information involved was secret?
2. Do you think the fine, with no prison time, is sufficient to discourage such activity?

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The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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