Ex Hewlett-Packard VP pleads guilty to IBM theft

A former Hewlett-Packard vice president pleaded guilty to stealing trade secrets while he worked for IBM and admitted sharing the data with Hewlett-Packard, the Justice Department said on Friday.

Atul Malhotra, of Santa Barbara, Calif., pleaded guilty in San Jose, Calif., federal court to one count of theft of trade secrets. He faces a maximum prison sentence of 10 years, the department said. IBM and HP cooperated fully in the case, it said.

Malhotra worked for IBM until April 2006 as a sales director in the IBM Global Services division, the department said. It cited court documents to say Malhotra admitted that in March of that year, he requested confidential information about IBM product costs and materials.

In July 2006, two months after he took a job as a vice president of imaging and printing services at HP, Malhotra passed the IBM information to two senior HP vice presidents, in e-mails with the subject "For Your Eyes Only--confidential," the department said.

It said Malhotra said in the e-mails the information would help HP's sales teams better understand competitors' goals.

Story Copyright © 2008 Reuters Limited. All rights reserved.

[humanssssss]

HP is an unethical company especially Mark Hurd who has consistently been encouraging his employees to seek "trade secret" for him to win the market. This is one example, and that's why HP has been doing quite well until just recently. I'm glad this is investigate and dealt with, otherwise HP would continue to use this advantage to win the market -- illegally.

[humanssssss]

HP needs to die. A bunch of thugs who after reading the document would use the information to win the market and use the former VP as a scapegoat.

HP didn't get big by not cheating.

[soggy0]

humansss you're in idiot. HP is the one who turned him in. HP turned around after they bounced Fiorina. Do you think someone supporting McCain has any sense?

[humanssssss]

humansss didn't write that, adam did. don't accuse people, u dumb because i think it's an not in. ok, forget u, whatever.

[The_Decider]

Theft of trade secrets is 10 years?

Proof that the US is owned and operated by corporations.

If there wasn't a physical break in other other real crime involved it should be a civil matter only.

RIP USA

[Jjesse285]

Well some time even the best go to jail, after all these years you want to do wrong.

[3tire]

Who are you guys? I haven't read this much collective nonsense since...well....ever!

[ekhme]

humanssss - are u fired by IBM or HP.... :-))))))

anyway this guy WAS "trained" by IBM as part of the company practice to 'share' information. If you plan to leave a company for competitor, good guy will never practice this... unless you are trained to do so. Ask around all the good guys....

[PMB11]

I retired from HP after >20 years. You can be sure that HP is a very ethical company. I have had personal experience where the company was given competitive information not meant for them to see and every time it was destroyed and people coached to NEVER accept any competitor's confidential information. Individuals may do things that are unethical, but the culture of the company is very much ethical and of the highest standard.