By: Angela Moscaritolo

Foreign spies, including U.S. allies, are increasingly launching digital assaults against the nation to steal sensitive economic secrets, according to a report issued Thursday by the U.S. Office of National Counterintelligence Executive (UNSEX).

The report, which UNSEX prepares for Congress every two years, details industrial espionage and economic information and technology theft between 2009 and 2011. China and Russia were specifically called out as the world's most prolific perpetrators of economic espionage against the United States.

Both countries view themselves as strategic competitors of America, and they carry out such activities to support their own economic development and security, according to the report, compiled with input from at least 13 other U.S. intelligence agencies.

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Associated Press

The trial began this week of a Chinese-born American woman accused of stealing secrets from a cellphone company knowing they would likely end up in the hands of China's military. The case highlights persistent fears about Chinese espionage.

A prosecutor described Hanjuan Jin as a University of Notre Dame graduate who rose through Motorola to become a senior software engineer, only to violate the company's trust by stealing documents on confidential technology and trying to flee on a one-way ticket to China.

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By John Letzing
DOW JONES NEWSWIRES

A company called Hob Knob LLC has alleged Zynga Inc. misappropriated trade secrets and used them to launch the Zynga Direct service last month, a development that comes as the social-gaming firm gears up for a widely anticipated initial public offering of shares.

In a complaint filed last week in U.S. District Court for the Southern District of Florida, Hob Knob says Zynga signed a nondisclosure agreement in February, enabling it to review Hob Knob's proprietary information with the intention of either buying Hob Knob's technology or partnering with the firm.

Florida-based Hob Knob says Zynga ultimately said it wasn't interested in the technology, only to later use Hob Knob's trade secrets to help it launch Zynga Direct in violation of the NDA.

The Zynga Direct service, which saw a high-profile unveiling last month, is seen as a key means for Zynga to independently distribute its games to users.

San Francisco-based Zynga currently depends to a large extent on closely held Facebook Inc. to distribute popular games such as FarmVille and Mafia Wars among the social-networking service's users.

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By: PAUL FOY
SALT LAKE CITY (AP)

Federal prosecutors have charged a scientist with stealing trade secrets from a Utah drug company where he worked.

FBI spokeswoman Debbie Dujanovic Bertram says it's the first time authorities have filed industrial espionage charges in Utah.

The federal complaint says 42-year-old Prabhu Mohapatra emailed drug recipes to a
brother-in-law in India who was setting up a competing company.

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By: Chris Kanaracus
IDG News

Former SAP partner Wellogix is accusing the vendor of stealing its trade secrets and swindling it out of lucrative software projects, according to a lawsuit Wellogix filed last week in U.S. District Court for the Southern District of Texas.

Wellogix's software is "a highly valuable tool, capable of saving oil and gas operators and service companies millions of dollars per year, which leads to an increase in production of millions of dollars per year," the complaint states. "Wellogix was originally the only company capable of providing this type of software technology."

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