14 January 1999: Taiwan“s Four Pillars Enterprise Co. Ltd. is accusing Avery Dennison Corp., a US maker of labeling systems, of fraud and theft of trade secrets in suits seeking US$ 262 million in da…
14 January 1999: Taiwan“s Four Pillars Enterprise Co. Ltd. is accusing Avery Dennison Corp., a US maker of labeling systems, of fraud and theft of trade secrets in suits seeking US$ 262 million in damages. Four Pillars, which makes adhesive tape, outlined the charges in a series of lawsuits and administrative filings made 30 December in Taiwan and China, the company said. In 1987, Four Pillars said, Avery Dennison approached the company to discuss a possible joint venture in China. Over the next seven years, Four Pillars said, it provided Avery Dennison with proprietary information about its own Asian operations. Four Pillars“ suits allege the information was then used by Avery Dennison when it broke off the joint venture talks to establish its own factory in China in 1994. In addition to charging Avery Dennison with fraud, it is seeking administrative relief against Avery Dennison for obtaining business secrets by fraudulent means and engaging in unfair competition. Four Pillars filed claims in China charging Avery Dennison with violations of the Unfair Competition Acts and the General Law of Civil Acts. In Taiwan, Avery Dennison is charged with violations of the Criminal Law and Fair Trade Laws. Meanwhile, Avery Dennison Corp. said the recent fraud allegations were unfounded. “We have not yet been served with the complaint, but the allegations described in the news release are completely without merit. This is an attempt to distract attention from Four Pillars“ own criminal conduct,” said Robert van Schoonenberg, general counsel of Avery Dennison. In its defence, Avery Dennison said that Four Pillars Chairman P.Y. Young, and his daughter, Sally Yang are both under house arrest in the United States awaiting a criminal trial in March. The pair are charged with participating in the theft of Avery Dennison trade secrets over a period of eight years, the company said.