Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Best Places to Work
    • Rubber Division IEC
    • War in Ukraine
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • ITEC
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • Airless Tires
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • Ask the Expert
    • Healthcare Elastomers Conference
    • Rubber In Automotive Conference
    • Women Breaking the Mold Networking Forum
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
May 29, 2015 02:00 AM

S. Korean firm to pay fine, restitution in trade secret case

Miles Moore
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    ALEXANDRIA, Va.—South Korean industrial firm Kolon Industries has pleaded guilty to conspiracy to steal DuPont's trade secrets regarding the manufacture of Kevlar.

    Kolon entered its guilty plea April 30 before the U.S. District Court for the Eastern District of Virginia. Judge Anthony J. Trenga sentenced Kolon to pay $85 million in criminal fines and $275 million in restitution to DuPont.

    The same day Kolon entered its guilty plea, it entered into a settlement agreement with DuPont resolving all issues in the civil lawsuit DuPont filed against Kolon in February 2009.

    The settlement includes up-front and ongoing payments to DuPont, but the terms of the settlement are confidential, DuPont said in a statement.

    On April 3 of this year, the Fourth Circuit Court of Appeals in Richmond reversed a $920 million jury award to DuPont dating from 2011, on the grounds that the Eastern Virginia court wrongfully excluded Kolon's evidence that some of DuPont's Kevlar patents involving police and military gear were invalid. It remanded the case to the lower court and said the case should be reassigned to another judge.

    At the time, one of Kolon's attorneys declared in a Kolon news release that the reversal was a major victory for his client. The same attorney could not be reached for comment on the settlement.

    Between June 2006 and February 2009, Kolon conspired with former DuPont employees and others to steal DuPont's trade secrets for making Kevlar, according to the statement of facts accompanying the April 30 plea agreement.

    Kevlar is a trademarked name for a high-strength, para-aramid fiber DuPont has manufactured since 1965. It is used in a wide range of commercial applications, including body armor, fiber optic cable, and automotive and industrial products.

    Kolon admitted it was trying to improve the quality of Heracron, its own para-aramid fiber, according to a release from the U.S. Department of Justice.

    Kolon admitted it illegally obtained various technical and business documents involving Kevlar, the agency said. These included instructional materials that described DuPont's “New Fiber Technology,” documents on polymerization, a detailed breakdown of DuPont's capabilities and costs for its full line of Kevlar products and a list of DuPont's Kevlar customers.

    Two former DuPont employees, Edward Schultz and Michael Mitchell, have pleaded guilty in the case.

    Schultz, who pleaded guilty in September 2014 to conspiracy to steal trade secrets, is scheduled to be sentenced June 26, Justice said. Mitchell, who pleaded guilty in December 2009 to theft of trade secrets and obstruction of justice, was sentenced to 18 months in prison.

    In August 2012, five former Kolon executives and employees, all South Koreans, were indicted in the case. They are:

    • Jong-Hyun Choi, a senior executive who was in charge of Kolon's Heracron business;

    • In-Sik Han, who managed Heracron research and development;

    • Kyeong-Hwan Rho, former head of the Heracron Technical Team;

    • Young-Soo Seo, former general manager for the Heracron Business Team; and

    • Ju-Wan Kim, a former manager on the Heracron Business Team.

    None of these defendants have appeared in the U.S. to face the charges, Justice said.

    This is the first case in which foreign corporations with no direct presence in the U.S. were successfully served with U.S. criminal charges, over their objections, based on the provisions of an international treaty, Justice said.

    DuPont hailed the guilty plea and settlement agreement in an April 30 news release.

    “The resolution of this litigation helps ensure the protection of our proprietary technology,” Stacy L. Fox, DuPont senior vice president and general counsel, said in a statement. “We look forward to continuing to apply our innovative science to meet the needs of customers and licensees of Kevlar.”

    Related Articles
    S. Korea's Kolon accused of stealing trade secrets
    Judge reverses decision, wiping out jury award to DuPont
    Update: U.S. sues contractor for early replacement of tires
    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Bridgestone sees sales, profits soar in 2022
    2
    Passion for materials: Buterbaugh first female CEO in Greene Tweed's 150-year history
    3
    Cabot 'evolving' with sustainability expectations
    4
    Buterbaugh's advice to women: Find what you love, seek out mentors
    5
    Pustay Beaven: Every woman has a story, this is mine
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Best Places to Work
      • Rubber Division IEC
      • War in Ukraine
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • ITEC
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • Airless Tires
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • Healthcare Elastomers Conference
        • Rubber In Automotive Conference
        • Women Breaking the Mold Networking Forum
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
      • Ask the Expert
    • Advertise
    • DIGITAL EDITION