Can employees become rich by stealing secrets and IP? | Hacker News Reader

Can employees become rich by stealing secrets and IP?

1 pointxstartup4 comments

It seems employees can simply steal IP/secrets and start an LLC, sell at a heavy discount, live like a king and simply declare bankruptcy at the end and start over?

Most likely, the affected parties will sue this company. During the operation (let's assume it lasts 12 months before affected parties realize and start filing suit). During the operation, he lives like a king, spends lavishly.

What will happen at the end? When lawsuit arrives, he can simply declare bankruptcy and start again.

The smart employee used a Limited Liability Company, his personal assets are not at risk. Whatever salary he drew is his own along with the dividends. Not to mention the benefits offered by his company like chartered jets, business travels etc... These can't be taken away from him.

Why are most employees not doing this? Or are there other mechanisms to prevent this from happening?

If you can retire by doing such thing one time, isn't it better than working your ass off for the rest of the life for some evil corp?

Can employees become rich by stealing IP?

Uber (for some reason) decided to give Levandowski $250 million to join their team. It just "happens" that he had a drive full of Google self-driving car research. I don't know that Uber paid for the what looks like to me to be industrial espionage, nor did I follow the details of the case or settlement but this has the smell of it.

Live like a king and start over?

Yes, if you think 10 years in jail is living like a king, or you value your life if your IP belongs to the government.

Additionally, court ordered restitution typically places a lien on your property that is not removed by bankruptcy. As for starting over, who would hire you in this situation and place you in a position with access to sensitive IP?

The smart employee used a Limited Liability Company

Your LLC will not shield you from any of this. You can not commit crimes in the name of your LLC. If you have an employee who commits a crime, then you as an owner may be shielded but that does not absolve or protect the employee in any way. In this case you would be held to account personally.

Why are most employees not doing this?

Most people act ethically most of the time and those who are not so inclined fear the rather terrible long term consequences.

can retire by doing such thing one time?

You mean after serving time in prison or are you assuming that our "employee" somehow gets away with it? I personally think if someone sells IP that would be valued in the "retire now" range of value, then they are likely to be discovered in the long run and held to account.

Better hope you like one of the countries with no extradition agreement and bank someplace where your assets can't be frozen.

You explained it like a dad. Kudos!

    The smart employee used a Limited Liability Company, his personal assets are not at risk.

(this is from a US perspective, IANAL, etc)

The protection of an LLC or other corporate structure isn't absolute - there's a whole vein of legal literature discussing "piercing the corporate veil".

One of the biggest reasons why a court would pierce the veil is using the LLC for fraudulent / illegal activity as described above. All the salary / dividends / benefits could be clawed back, and even assets the person had prior to starting the scheme would be potentially subject to forfeiture to pay a judgement.

Look at the Waymo/Uber lawsuit. It involves alleged theft of IP and the individual along with company is being sued.

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