Skip to content

Menu

LexBlog, Inc. logo
NetworkSub-MenuBrowse by SubjectBrowse by PublisherJoin the NetworkGet StartedSubscribeSupport
Contact Us
Search
Close

Former Coca-Cola Employee Convicted of Stealing Trade Secrets for the Chinese Government

By Raija Horstman, Laura Schwartz & Emily Tucker on May 11, 2021
Email this postTweet this postLike this postShare this post on LinkedIn

First off, don’t worry, Coca-Cola’s super-secret trade secret recipe is still safe.  But on April 22, 2021, a jury in the Eastern District of Tennessee convicted a former Coca-Cola employee, Dr. Xiaorong (a/k/a Shannon) You, of stealing trade secrets related to BPA-free coatings for the inside of beverage cans for the Chinese Government. The Indictment alleged that the trade secret information cost almost $120 million to develop. The twelve-day in-person trial focused not just on the former employee’s wrong doing, but also on some the best practices Coca-Cola and Eastman Chemical Company used to protect the trade secrets at issue.

Dr. You worked as a Principal Engineer for Global Research at Coca-Cola from 2012 to 2017, where she had access to the BPA-free related trade secrets. According to the Indictment, before departing from Coca-Cola, You opened files containing trade secrets on her computer and took photos of her desktop to bypass Coca-Cola’s security measures. She also transferred other trade secret information to an external hard drive.

After leaving the Coca-Cola company, Dr. You worked for Eastman Chemical Company, where she was employed until June 2018 as an application development manager. In this position, Dr. You had access to Eastman Chemical Company’s BPA-free related trade secrets. Shortly before the end of her employment, Dr. You uploaded more trade secret documents to her Google drive account.

Dr. You was arrested on February 14, 2019, and her trial began in April 2021. According to prosecutors, Dr. You planned to share the trade secrets with a Chinese corporate partner and start her own coating company in China, and intended to benefit the Chinese Communist Party and the Chinese Government. The jury agreed and convicted You of conspiracy to commit economic espionage and to steal trade secrets, possession of stolen trade secrets, economic espionage, and wire fraud.

Notably, Dr. You and one of her co-conspirators received millions of dollars in grants from the Chinese government for the actions leading to her conviction, including from a “Thousand Talents Program.” As previously discussed, the FBI has indicated that such programs “usually involve undisclosed and illegal transfers of information, technology, or intellectual property that are one-way and detrimental to U.S. institutions.” Dr. You awaits sentencing this November.

Dr. You’s conviction also underscores the importance of using a combination of best practices to prevent and address unauthorized trade secret disclosures.  Prosecutors noted that both Coca-Cola and Eastman Chemical Company limited access to the BPA-free trade secret formulas to just a subset of their employees.  Unfortunately, as a senior engineer with BPA-free coatings experience, Dr. You was among that subset of employees.  Prosecutors also noted that Coca-Cola trained its employees to protect trade secrets in its possession.

Companies should combine these steps with additional best practices to better safeguard their trade secrets.  For example, in addition to training employees to report suspicious behavior, companies should create a detailed response plan for quickly addressing potential unauthorizes disclosures.  In addition, companies should draw on their HR, IT, and legal departments to create cross-departmental teams capable of quickly executing on such plans.

Photo of Raija Horstman Raija Horstman
Read more about Raija HorstmanEmail
Photo of Laura Schwartz Laura Schwartz

Laura Schwartz is a counsel in Crowell & Moring’s Los Angeles office, where she is a member of the Commercial Litigation and White Collar & Regulatory Enforcement groups. Laura represents corporate and individual clients in high stakes litigation including healthcare fraud, intellectual property…

Laura Schwartz is a counsel in Crowell & Moring’s Los Angeles office, where she is a member of the Commercial Litigation and White Collar & Regulatory Enforcement groups. Laura represents corporate and individual clients in high stakes litigation including healthcare fraud, intellectual property and trade secrets theft, data privacy, and related criminal investigations in state and federal courts. Her clients include Fortune 500 companies, multinational health care services and investment bank and financial services companies, university systems, and technology start-ups.

Read more about Laura SchwartzEmail
Show more Show less
Photo of Emily Tucker Emily Tucker

Emily Tucker represents clients in a wide range of product liability matters, including in multidistrict litigation and class actions. Her work encompasses pharmaceutical and medical device matters impacting all members of the pharmaceutical supply chain, as well as counseling automotive and rail industry

…

Emily Tucker represents clients in a wide range of product liability matters, including in multidistrict litigation and class actions. Her work encompasses pharmaceutical and medical device matters impacting all members of the pharmaceutical supply chain, as well as counseling automotive and rail industry clients through litigation and related appeals. Emily regularly applies her scientific background to her legal work, finding that her technical acumen provides a valuable perspective for matters and research involving technology, biology, and chemistry.

Emily’s maintains an active  pro bono practice, with a focus on landlord-tenant disputes.

Emily received her J.D., magna cum laude, from William & Mary Law School. While there, she was awarded the ABA/BNA Award for Excellence in the Study of Intellectual Property Law, and she served as the director of outreach for the Student Intellectual Property Society. Emily received her B.S., magna cum laude, in chemical and biomolecular engineering from the Georgia Institute of Technology

Read more about Emily TuckerEmail
Show more Show less
  • Posted in:
    Business and Commercial, Criminal
  • Blog:
    Trade Secrets Trends
  • Organization:
    Crowell & Moring LLP
  • Article: View Original Source

Call us at 1-800-913-0988 or email sales@lexblog.com.

Facebook LinkedIn Twitter RSS
  • About LexBlog
  • The Field We Built
  • Our Beliefs
  • Our Team
  • Contact LexBlog
  • Disclaimer
  • Editorial Policy
  • Terms of Service
  • Get Started
  • Publishing Solutions
  • Compass
  • Submit a Request
  • Support Center
  • System Status
Copyright © 2026, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo