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Former Google engineer charged with trade secrets theft


August 28, 2019
By The Associated Press

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SAN JOSE, Calif. — A former Google engineer is being charged with stealing closely guarded secrets that he later sold to Uber as the ride-hailing service scrambled to catch up in the high-stakes race to build robotic vehicles.

The indictment filed Tuesday by the U.S. Attorney’s office in San Jose, California, is an offshoot of a lawsuit filed in 2017 by Waymo, a self-driving car pioneer spun off from Google. Uber agreed to pay Waymo $245 million to settle the case, but the federal judge overseeing the lawsuit made an unusual recommendation to open a criminal probe.

Uber considered having self-driving technology crucial to survive. Anthony Levandowski, a pioneer in robotic vehicles, was charged with 33 counts of trade secrets theft. He could be sentenced up to 10 years and fined $250,000 per count.

Prosecutors say the probe is ongoing, but they wouldn’t say whether Uber and its founding CEO Travis Kalanick are targets. Prosecutors say Google and Uber co-operated in the investigation.

Levandowski was accused of stealing years of top-secret information from Google, which prosecutors called the crown jewels of the company. That included Google’s breakthroughs in lidar, a key piece of technology that enables self-driving cars to detect what’s around them.

During the Waymo trial, Kalanick conceded that Uber needed to develop self-driving cars to survive. But he denied that he ever resorted to stealing technology from Google, whom he believed was an ally until he began to suspect the company intended to launch its own ride-hailing service consisting entirely of its robotic vehicles.

But Kalanick also testified that his push to build a fleet of self-driving cars for Uber led him to woo Levandowski, who at the time was considered to be a pioneer in robotic vehicles. The two men began talking in 2015 before Levandowski left Google. After he left, Uber paid $680 million in 2016 to acquire Otto, a self-driving truck startup founded by Levandowski and another former Google employee, Lior Ron.

Waymo, which spun off from Google in 2016, alleged that Levandowski downloaded 14,000 documents containing its trade secrets before he left the company to found Otto. Uber denied knowing anything about those documents, but eventually fired him after he repeatedly asserted his constitutional right against self-incrimination leading up to the trial.

The whiff of potential wrongdoing became even more pungent following the disclosure of allegations by a former Uber security specialist, Richard Jacobs, that the company employed an espionage team to spy on Waymo and other rivals while creating ways to conceal any stolen technology.

Google also pursued a separate case against Levandowski in arbitration proceedings, which resulted in a panel ordering Levandowski to pay the company $127 million, according to disclosure made by Uber leading up to its IPO. Uber may be held liable for paying all or part of that as part of guarantees it made in its Otto acquisition, but believes it may be able to get out of those obligations.

— Michael Liedtke

News from © Canadian Press Enterprises Inc. 2019


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