Skip to: Content
Skip to: Site Navigation
Skip to: Search


Chinese businessman pleads guilty to $100 million in software piracy

Chinese businessman Xiang Li pleads guilty to stealing $100 million in software from Microsoft, Oracle, Siemens, and others, marking the first time a software pirate was successfully lured to US soil and arrested.

By John ShiffmanReuters / January 7, 2013

Siemens and Microsoft are two of the victims of a Chinese businessman now pleading guilty to about $100 million in software piracy. This file photo shows a traffic light next to the German headquarters of Nokia Siemens Networks in Munich.

Michael Dalder / Reuters / File

Enlarge

Wilmington, Del.

In a case U.S. officials say is the first of its kind, a Chinese businessman pleaded guilty Monday to selling stolen American software used in defense, space technology and engineering -- programs prosecutors said held a retail value of more than $100 million.

Skip to next paragraph

The sophisticated software was stolen from an estimated 200 American manufacturers and sold to 325 black market buyers in 61 countries from 2008 to 2011, prosecutors said in court filings. U.S. buyers in 28 states included a NASA engineer and the chief scientist for a defense and law-enforcement contractor, prosecutors said.

Corporate victims in the case included Microsoft, Oracle, Rockwell Automation, Agilent Technolgoies, Siemens, Delcam, Altera Corp and SAP, a government spokesman said.

U.S. officials and the businessman's lawyer, Mingli Chen, said the case was the first in which a businessman involved in pirating industrial software was lured from China by undercover agents and arrested.

The businessman, Xiang Li, of Chengdu, China, was arrested in June 2011, during an undercover sting by U.S. Department of Homeland Security agents on the Pacific island of Saipan, an American territory near Guam.

Video from the undercover meeting in Saipan, filed as evidence in court, is expected to be made public during a press conference Tuesday by John Morton, director of U.S. Immigration and Customs Enforcement, and Charles M. Oberly III, the U.S. Attorney for Delaware.

Li, 36, originally charged in a 46-count indictment, pleaded guilty late Monday to single counts of conspiracy to commit criminal copyright violations and wire fraud.

"I want to tell the court that what I did was wrong and illegal and I want to say I'm sorry," Li told U.S. District Judge Leonard P. Stark during a 90-minute hearing in federal court. The Chinese citizen spoke through a translator.

  • Weekly review of global news and ideas
  • Balanced, insightful and trustworthy
  • Subscribe in print or digital

Special Offer

 

Doing Good

 

What happens when ordinary people decide to pay it forward? Extraordinary change...

Danny Bent poses at the starting line of the Boston Marathon in Hopkinton, Mass.

After the Boston Marathon bombings, Danny Bent took on a cross-country challenge

The athlete-adventurer co-founded a relay run called One Run for Boston that started in Los Angeles and ended at the marathon finish line to raise funds for victims.

 
 
Become a fan! Follow us! Google+ YouTube See our feeds!