Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • Titan to offer free COVID-19 vaccines at Iowa facility
      Bridgestone hosts vaccination events for plant employees
      Cioffi: Will remote working be the new normal?
      Bridgestone Iowa plant navigates pandemic, demand
    • Conti adding dynamic driving simulator at German R&D center
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
      SEMA picks site in Michigan for 2nd SEMA Garage
      Online retailer CARiD.com looks to triple size of tire/wheel installer network
    • Video: Michelin looks to diversify for additional growth opportunities
      Michelin strikes supply deals with new Canadian racing series
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
      Vipal Rubber retread guarantee program hits milestone
    • Love's adds 6 Speedco servicing sites to its Travel Stop network
      Bridgestone hosts vaccination events for plant employees
      Jinyu Tire starts truck tire production at Vietnam plant
      Vipal Rubber retread guarantee program hits milestone
    • New York chipping in $3M+ toward Sumitomo factory expansion
      SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      U.S. agro-science firm gets $1M grant to research sunflower latex
    • Video: Michelin looks to diversify for additional growth opportunities
      Conti adding dynamic driving simulator at German R&D center
      Michelin strikes supply deals with new Canadian racing series
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
    • Maxxis offers discount to ChampCar competitors
      Michelin strikes supply deals with new Canadian racing series
      Bias-ply tires return to NASCAR Cup Series for Bristol dirt race
      Hankook named race tire supplier for touring car series in Europe, Japan
    • Snap-On introduces TreadReader handheld tire scanner
      Vogue Tyre introduces ‘biggest, boldest' red stripe tire
      Cooper adds Rugged Trek all-terrain to Discoverer LT/SUV tire line
      Hankook unveils Vantra specialty trailer tires
    • Bauer Built promotes pair to VP positions
      TECH Americas adds Haggerty to marketing team
      Snap-On introduces TreadReader handheld tire scanner
      Discount Tire adopts mobile tread-depth scanning system
    • Snap-On introduces TreadReader handheld tire scanner
      Marked for winter: Origin of Three-Peak Mountain Snowflake
      Post-repair message adds personal touch
      Cioffi: Will remote working be the new normal?
    • SEMA picks site in Michigan for 2nd SEMA Garage
      SEMA touts expanded Las Vegas Convention Center ahead of 2021 expo
      TIA seeking nominations for Tire Industry Hall of Fame
      SEMA survey shows resilient auto aftermarket in 2020
    • SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      Giti disputes report blasting tire maker for accepting PPP funds
      SEMA survey shows resilient auto aftermarket in 2020
    • Titan to offer free COVID-19 vaccines at Iowa facility
      Vogue Tyre introduces ‘biggest, boldest' red stripe tire
      Maxxis offers discount to ChampCar competitors
      Jinyu Tire starts truck tire production at Vietnam plant
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      An introduction to wheel balancing
      Wheel weights: Balancing form with function
      Choosing the right balancing equipment
    • Video: Demounting
      An introduction to demounting, mounting and inflation
      Staying safe when demounting and mounting tires
      Demounting Equipment
    • Video: Safety
      Introduction: Creating a culture of safety
      Protecting your people with proper hygiene
      Making friends with OSHA
    • Video: Tire Repair
      An introduction to tire repair
      How to properly patch a puncture
      Tire repair: Shining a light on visual inspections
    • Video: TPMS Service
      An introduction to TPMS service
      The importance of proper relearn procedures
      Decoding sensor data for TPMS diagnosis
    • Video: Training
      Intro: Finding and training technicians
      Shop Floor: Scholarships
      Advantages of apprentice program partnerships
    • Video:Vehicle Lifting
      An introduction to lifts and lift safety
      Recommendations for using a jack
      Jack stands for commercial tire service
    • Video: Wheel Torque
      Introduction to proper wheel installation
      Torque check and recheck recommendations
      Using torque sticks to speed service times
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
  2. News
February 05, 2013 01:00 AM

Convictions upheld in trade secrets case

Tire Business Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    By Miles Moore, Senior Washington Reporter

    KNOXVILLE, Tenn. (Feb. 5, 2013) — The Sixth Circuit Court of Appeals has upheld the convictions of two former Wyko Tire Technology Inc. engineers for stealing trade secrets from Goodyear, but reversed and remanded their sentences to the Knoxville federal district court.

    Clark Alan Roberts and Sean Edward Howley were found guilty in December 2010 of 10 counts of stealing trade secrets and wire fraud.

    According to the indictment, Messrs. Roberts and Howley visited Goodyear's Topeka, Kan., plant on May 30-31, 2007. Ostensibly, they were there to service Wyko equipment at the facility, but instead they surreptitiously took pictures of Goodyear's proprietary "swab-down" device that applies the inner bead of an off-the-road tire to the wheel hub.

    Messrs. Roberts and Howley then emailed seven pictures of the device to a Wyko subsidiary in England. The plan, according to the court, was to use the photos to design and build a similar device for Haohua South China Guilin Rubber Co. Ltd.

    The two men were sentenced in August 2011 to four months of house arrest, 150 hours of community service and four years' probation. Judge Thomas W. Phillips also fined them each $1,000, but waived the fines because of their inability to pay.

    Messrs. Roberts and Howley had faced maximum sentences of 10 years in prison for each trade secret count, 20 years for each wire fraud count and $2.5 million in fines. Judge Phillips, however, passed the lighter sentences because the duo had committed no previous crimes and because of the character witnesses called on their behalf.

    Judge Phillips also did not allow an expert witness for Goodyear to testify, ruling that his estimates of the financial damage caused by Messrs. Roberts' and Howley's actions were not supported by documentation.

    Both the U.S. Justice Department and the defendants appealed the verdict. The government argued that the sentences were too lenient; Messrs. Roberts and Howley argued that their actions did not meet the statutory definitions of trade secret theft or wire fraud.

    The appeals court, however, found the evidence easily met the legal standard. Goodyear's security precautions alone demonstrated that it saw the need to keep its machinery designs secret, it said in its Feb. 4 decision.

    "The behavior of the key players in this case also shows that Roberts and Howley stole information that they could not obtain through public means," the court said. "If Wyko could have learned how to design tire assembly machines on its own, why all this fuss?"

    Messrs. Roberts and Howley argued that the trade secrets statute is unconstitutionally vague, according to the decision. "This contention faces a serious impediment: We considered an identical challenge 11 years ago and rejected it," the court said.

    The appeals court also found the trial court in error for not considering the financial losses to Goodyear.

    "On remand, the district court need not be exactly," the appeals court said. "But the court must at least provide an estimate (of damages) and reasons for it."

    Goodyear spokesmen and attorneys for the defendants could not be reached for comment.

    To reach this reporter: [email protected]; 202-662-7211.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award