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Huawei accused of IP theft and installing a backdoor in public security project

A US cloud software company is suing Chinese vendor Huawei, alleging it stole it intellectual property and installed a backdoor when they collaborated over a project in Pakistan.

The lawsuit, which has been published by The Register, was brought by Business Efficiency Solutions, which describes itself as an ERP software company with a focus on the cloud. It claims in 2015 Huawei was pitching for a project with Lahore law enforcement agencies to modernise their IT, but lacked expertise in some areas, so sought to partner with BES on the project. BES agreed and they won the $150 million gig.

BES then alleges that once Huawei got access to its proprietary technology it set about reverse-engineering it such that it could then buy equivalent technology elsewhere and contest its commercial obligations to BES within the deal. Huawei is also accused of using its knowledge of BES trade secrets to bid for other similar projects by itself.

The juiciest allegation, however, is that Huawei also used the project to steal private data from Pakistan. “Huawei also began to use one of BES’s software systems to establish a ‘backdoor’ from China into Pakistan that allowed Huawei to collect and view data important to Pakistan’s national security and other private, personal data on Pakistani citizens,” alleges the suit.

The Reg also got hold of a brief comment from Huawei. “In September 2018, Huawei Pakistan filed for arbitration in District Courts (West), Islamabad against Business Efficiency Solutions (BES) over ongoing contract disputes,” it said. This arbitration resulted in an interim relief order in Huawei’s favour. The arbitration process is still ongoing. We do not comment on on-going legal cases. Huawei respects the intellectual property of others, and there is no evidence Huawei ever implanted any backdoor in our products.”

Since this case has been underway for three years in Pakistan, you have to wonder why BES has decided to re-litigate in the US. It could be because it’s not happy with how it’s being handled in Pakistan or maybe the US government encouraged it to do so in order to present further evidence of the alleged security threat posed by Huawei. Either way, the outcome of this case could have ramifications far beyond BES’s bottom line.

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4 comments

  1. Avatar reg weiser 16/08/2021 @ 3:54 pm

    Typical Huawei and Chinese behavior

  2. Avatar Happiman 19/08/2021 @ 5:53 am

    Anything new? It’s in their blood and genes. They just cannot help cheating and stealing.

  3. Avatar Zeissiez 23/10/2021 @ 11:26 pm

    Do you know how Alstom was robbed by the USA? And how Toshiba was knocked out of DRAM production after dominating the field? Stop being a racist.

    Regards from Malaysia

  4. Avatar Asghar Ali 03/12/2021 @ 5:41 am

    Hi in my View when Huawei sign agreement with BES about Joint-Venture than if they jump inside the algorithm you were using. If you not allow, neither you handle project via them than how they were supposed to get inside your system & made trouble for you.

    So its matter of business Greediness. You need business & Huawei need a Software (ERP). About Data of Pakistani citizen, you file a law suit, is Pakistan Govt is party in it?

    I am an ICT person from Pakistan. in the field of IT & Networks many things happening. Reverse engineering. like 100’s of companies learned Whatsapp & made own internal Messenger with security.

    So once you come in market you have to code your system by own. if you depends on other hands it will give you setback.

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