Chinese National Pleads Guilty in Monsanto Trade Secrets Case
Xiang Haitao, a Chinese national, pleaded guilty Jan. 6 to conspiracy to steal a trade secret from international agricultural biotechnology company Monsanto to benefit the Chinese government, the Department of Justice said. Xiang worked at the company, now part of Bayer, and its subsidiary, The Climate Corporation, during 2008-2017 as an imaging scientist. Monsanto and The Climate Corporation developed a digital, online farming software platform used to collect and store field data and bolster productivity for farmers, DOJ said. The Nutrient Optimizer was a key piece of this technology and ended up being the target of Xiang's trade theft efforts.
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The day after Xiang ended his tenure with Monsanto and its subsidiary, he booked a one-way ticket to China. Federal officers searched his bags while he was waiting to board the flight and found what was later determined to be the company's trade secrets, DOJ said. Although he was allowed to continue to China, Xiang was arrested upon his return to the U.S., DOJ said. He pleaded guilty to one count of conspiracy to commit economic espionage and faces a maximum penalty of 15 years in prison coupled with a potential fine of $5 million. Sentencing will be April 7, DOJ said.
“Despite Xiang’s agreements to protect Monsanto’s intellectual property and repeated training on his obligations to do so, Xiang has now admitted that he stole a trade secret from Monsanto, transferred it to a memory card and attempted to take it to the People’s Republic of China for the benefit of Chinese government,” said Assistant Attorney General Matthew Olsen of DOJ's National Security Division. “With his guilty plea, Xiang is now being held accountable for this unlawful conduct.”