A federal jury in Chicago convicted a former Philips Medical Systems engineer on Aug. 24 of stealing proprietary X-ray technology to benefit a Chinese competitor, with prosecutors describing a years-long scheme that began while the engineer was still employed at the company.
Chih-Yee Jen, 71, was found guilty after a week-long trial on two counts, conspiracy to steal or misappropriate trade secrets and possessing or attempting to possess stolen trade secrets. The Justice Department announced the verdict, which adds a criminal outcome to a civil dispute over technology used in CT scanners that had been ongoing for several years.
Jen worked at the Aurora, Illinois facility, where employees researched, developed and manufactured X-ray tubes used in computed tomography scanners. The Dunlee business unit had spent years developing proprietary X-ray technology that represented significant competitive value.
How the scheme unfolded
Prosecutors said the scheme began in 2017 when Philips was preparing to close the Aurora facility. China-based Kunshan GuoLi Electronic Technology Co. and its vice president, Xiaoqin Du, began communicating with Jen about creating a U.S. subsidiary that would compete directly with Philips in developing, manufacturing and selling X-ray tubes.
While still employed at Philips, Jen shared confidential documents with GuoLi and Du, copied proprietary X-ray information from Philips databases, and recruited other Philips engineers to join the planned subsidiary. After leaving the company, he used the stolen information in work developing technology for that operation.
Two other former Philips engineers, Fince Tendian and Vladimir Nevtonenko, pleaded guilty before Jen’s trial and admitted to possessing stolen trade secrets, corroborating the broader account of the conspiracy.
Those still facing charges
Du, GuoLi and related Chinese company Kunshan Yiyuan Medical Technology Co. were also indicted in connection with the case but have not appeared in U.S. court to enter pleas. They remain on the court’s Fugitive Calendar, meaning they are effectively beyond American legal reach unless they enter U.S. jurisdiction.
This outcome, where American defendants are convicted while the principal foreign defendants remain in China and inaccessible to U.S. enforcement, is a recurring pattern in trade secret cases involving Chinese companies. The Justice Department has indicted numerous Chinese nationals and entities in technology theft cases over the past decade with limited ability to compel their appearance.
The technology at issue
X-ray tubes are the core component of CT scanners, which are among the most widely used diagnostic imaging tools in medicine. Trade secret improvements in X-ray tube design affect scanner speed, image quality, tube longevity and operating cost, which are all commercially significant in the medical imaging market. Control over trade secret technology determines competitive positioning in a market where Philips has historically been one of a small number of dominant suppliers.
The case reflects a broader pattern of documented technology transfer from American industrial companies to Chinese competitors. Medical imaging is one of many industries where Chinese investment has targeted foreign trade secrets as a route to building competitive domestic capacity.
Sentencing for Jen has not yet been scheduled.
