Trade Secret Protection of Genetically Engineered Rice Through the Economic Espionage Act: A Lesson from United States v. Weiqiang Zhang

Kansas-based Ventria Bioscience Inc. developed genetically engineered rice seeds that would be used in the therapeutic and medical fields. Unfortunately, one of Ventria's employees worked with a Chinese entity to steal the rice seeds, but he was caught and charged with conspiracy to steal trade secrets under the Economic Espionage Act (EEA). Later, the employee was convicted of such conspiracy crime, but the employee filed a motion to acquit. The U.S. District Court for the District of Kansas in United States v. Weiqiang Zhang denied the motion and finally sentenced the employee to about ten years. This article is intended to explore the Zhang decision. The Zhang decision demonstrates the success of the EEA in protecting R&D investment in the development of genetically modified substances. A genetically modified substance is a protectable trade secret under the EEA, as long as the owner implements physical security measures and contractual measures to protect its trade secrets.