US firm sues Huawei for allegedly stealing trade secrets, spying on Pakistan

Huawei allegedly unethically used the California-based company's software to spy on the Pakistani government.

Telecom Review - Huawei strengthens brand with launch of second flagship storeA US software company has sued Huawei in a U.S. federal court in California for allegedly stealing its trade secrets and spying on the Pakistani government.

It is pertinent to note that the U.S. software company and Huawei were jointly working on a project for the Pakistani government.

The California-based US software company, Business Efficiency Solutions (BES) LLC, has accused the Chinese tech giant of unlawfully using the U.S. company’s technology to create a ‘backdoor’ that enabled it to collect sensitive data “important to Pakistan’s national security.”

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According to the complaint, Huawei was looking to develop software for the Pakistani authorities to provide the latest technology for the law enforcement agencies in Lahore.

For this purpose, the Chinese tech giant subcontracted with BES in 2016 for a $150 million bid.

As per the agreement, the California-based software company fulfilled its responsibilities and developed software that collected data for several purposes.

These included collecting data from Pakistani governmental agencies, having access to control buildings, monitoring social media, and managing drones.

Moreover, BES had developed eight software systems for Huawei that included BES’s “valuable trade secrets.”

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However, as per the complaint, Huawei officials later demanded BES to send this information to China for testing.

As soon as BES concurred with this demand and sent the information to China, Huawei revoked BES’s access to the testing laboratory and refused to return the software tools and technology to BES.

Furthermore, the Chinese tech giant demanded that BES install its data-aggregation software in the Chinese lab.

It is pertinent to note that Pakistani law enforcement agencies use BES’s data-aggregation software to collect and analyze “sensitive data.”

The BES alleged that the Chinese tech giant did not demand the data-aggregation software merely for testing but to gain unethical access to the entire data of the Lahore Safe City project.

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The California-based company said it was forced to provide the data-aggregation software to Huawei as the Chinese tech giant had withheld its payments.

The complaint accused Huawei of manipulating the software company to unethically gain “sensitive data important to Pakistan’s national security.”

Moreover, BES claimed that Huawei never fully paid it for the software and misused its trade secrets for similar “Safe City” projects in Pakistan and worldwide.

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