Dealing with IP and hardware theft

1 points by iwcai 9 years ago | 3 comments

I recently hired an iOS developer to handle some API work. Long story short the nutjob has ran off with a piece of sample hardware that is potentially valuable. Instead of actually completing the work (which another developer has done in less than a day) he resorted to making us look pretty bad in front of a key partner and is withholding our medical device and blackmailing us for payment on balance. The contract address ended up being some bogus mailbox in SF. Wondering if there is any recourse? We do not want this guy running around the valley with our code and this hardware.

techjuice 9 years ago |

Best thing you can do is make a report with you local police station, and talk with an attorney. You can also report the crimes to the FBI (IC3) - https://www.ic3.gov/faq/default.aspx if your attorney recommends it and the value lost is very large.

You should also take the individual to court since multiple crimes have possibly occurred (blackmail, possibly extortion, using false pretenses in gaining work, fraud by not completing work, Larceny, possession of stolen goods, theft and many more criminal offenses.) Depending on the value of the work and hardware stolen it may become a large number of large felony offenses.

Sounds like all of these were conducted online, with no face to face local meetups? When your work involves hardware it is normally recommended to only deal with people face to face and use escro for payments. Do you still have the signed contracts, if so keep it along with any other electronic or physical communications you may had with the individual.

Did the person give you anything your able to have your attorney get a warrant for information on (email address, online username for a service, etc.) to gather their real name and location?

iwcai 9 years ago | |

I actually did meet him face to face to get him started. I will call local police and report the items as stolen. Do you have any information on the possibility of it being a felony? He's got roughly 50k worth of hardware/software. All communications are safely kept. I've got an address for a mailbox registered to him. Two email addresses and a couple of IP's.

techjuice 9 years ago | | |

The value/type of the stolen property is normally what starts to make it a felony if it exceeds a states maximum for being a misdemeanor. If the value is around 50k then it is a felony and jail time should be served for the crimes committed. Normally a misdemeanor tops out at $250-$500, after that it starts getting into different levels of felony, normally 1st being the lowest and increasing in minimum probation or sentencing, fines, etc. that have to be paid as the level increases.

Talk with your attorney on Monday to get the ball rolling. Hopefully you will be able to have your attorney prosecute the guy, but while your at it be sure to file charges after talking with your attorney with the local police and FBI.