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Former IBM exec guilty of passing trade secrets to HP

Former IBM print services director found guilty of trying to pass secrets to new employer

A former IBM executive is facing up to ten years in prison in the US, for sharing confidential documents with his new employers at HP.

Atul Malhotra was director of sales and business development in output management services at IBM Global Services until April 2006. In his final month at IBM, Malhotra requested, and was given, a confidential IBM internal pricing matrix.

He then joined HP in May 2006, as VP of imaging and print services, and twice forwarded the document to other HP executives. HP swiftly fired him and reported the incident to authorities.

Malhotra was found guilty of stealing trade secrets, and now faces a possible ten years imprisonment and a $250,000 fine.

An HP statement at the time of the indictment said: "The activity with which Malhotra is charged was in direct violation of clear HP policies, including HP Standards of Business Conduct. HP detected this activity, conducted an internal investigation, terminated Malhotra's employment from HP, and reported the activity to appropriate enforcement agencies and to IBM."

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