Boweco faces trade secrets charges over rival’s files

A heating equipment maker and its chief executive are accused of using trade secrets taken from a bankrupt competitor, Yle reports. The Central Finland District Court has heard the case against Boweco, which makes heating plants and boilers in Saarijärvi.

The prosecution alleges that Boweco’s chief executive, formerly sales director at Ariterm, copied more than 200,000 company files in spring 2019, including trade secrets. Ariterm went bankrupt in June that year. Its bankruptcy estate sold the company’s product rights and technical documents to Ariterm Energy.

About a month after Ariterm’s bankruptcy, the former sales director and an Ariterm design engineer founded Boweco, which operates in the same industry. The engineer, who is also a main suspect in the case, died before the trial began.

The prosecutor is seeking a suspended prison sentence of eight to 10 months and an additional fine for Boweco’s chief executive. The prosecution also wants Boweco to pay a corporate fine of 20,000 euros and hand over 100,000 euros in alleged criminal proceeds to the state.

Boweco and its chief executive deny the charges. They say the files did not contain trade secrets and were not used in Boweco’s business.

Ariterm Energy is seeking nearly 690,000 euros in compensation or damages, plus interest, from the defendants jointly. The court will hear that claim separately after the criminal case has been resolved with a final judgment.

The court heard the criminal case over 10 days before two judges. It is due to deliver its verdict on November 16.