Two computer literate
thieves, Steven Hallstead and Brian Pringle, contacted Cyrix Corp. and
offered to sell it five “Slot II” computers that had been stolen from
Intel, Inc., in April 1998. Intel placed the value of the various trade
secrets contained within the prototype computers at $10 million, had a
competitor been able to get their hands on the information before Intel
released the computers to the public the following month.
Hallstead, identifying
himself on the telephone only as “Steve” contacted Cyrix in
Richardson, Texas, and offered to sell Cyrix Intel’s Slot II CPUs.
Hallstead told Cyrix that the CPUs were being developed by Intel and that
they would be valuable to Cyrix. Cyrix, wanting no part in the scheme,
immediately contacted the FBI.
Cyrix cooperated with the
FBI in carrying out a sting operation to identify and nab the individual
who was attempting to sell the sell the prototypes. Cyrix permitted an FBI
agent to pose as a Cyrix employee. Hallstead offered to sell the computers
to the FBI agent for $75,000. FBI agents in Dallas, working with FBI
agents in California, identified and located Hallstead and his partner,
Pringle, in California. Hallstead had Pringle travel from California to
Texas to deliver two of the Slot II CPU’s to the Cyrix offices in
Richardson. The FBI greeted Pringle when he arrived at the Cyrix offices
and delivered the CPUs to FBI agents who were posing as Cyrix employees.
Hallstead was arrested later that same day in California.
Hallstead and Pringle both
pled guilty to, among other things, conspiracy to commit theft of trade
secrets. Hallstead was sentenced to 77 months in prison and a $10,000
restitution fine; Pringle received a 60 month sentence and $50,000
restitution.[i]
[i] Department of Justice
sources and website; Carr, Chris; Morton, Jack; Furniss, Jerry, The
Economic Espionage Act: Bear Trap or Mousetrap, The Texas
Intellectual Property Law Journal, Vol. 8, No. 2, Winter 2000, pp.
190.
© Copyright 2002 by Steven
Fink, All Rights Reserved. The text of this publication, or any part
thereof, may not be reproduced in any manner whatsoever without written
permission from the publisher or author.
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