People v. Gopal

171 Cal. App. 3d 524, 217 Cal. Rptr. 487, 1985 Cal. App. LEXIS 2433
CourtCalifornia Court of Appeal
DecidedAugust 23, 1985
DocketA012679
StatusPublished
Cited by29 cases

This text of 171 Cal. App. 3d 524 (People v. Gopal) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Gopal, 171 Cal. App. 3d 524, 217 Cal. Rptr. 487, 1985 Cal. App. LEXIS 2433 (Cal. Ct. App. 1985).

Opinion

Opinion

ANDERSON, J. *

Appellant Peter K. Gopal, together with Lee Yamada, Jim Catanich, and Andrew Moore, 1 was indicted in 1978 2 on a total of 23 counts relating to events surrounding the alleged theft of trade secrets from Silicon Valley firms manufacturing semiconductors and computer chip devices. In essence, the investigation involved a “sting” operation in which appellant offered to sell and then delivered stolen property to corporate security officers resulting in his arrest, the issuance of a search warrant, and the seizure of additional stolen property.

After lengthy pretrial proceedings and a 31-day court trial, 3 appellant was found guilty of conspiracy to commit a crime (Pen. Code, §§ 182/496), 4 *529 offering a bribe to acquire a trade secret (§ 499c, subd. (c)), and four counts of possession of stolen property (§ 496). 5 He was sentenced to two years and eight months in state prison.

I. Facts

A. Introduction

To understand the nature of the stolen property, 6 an elementary description of the manufacturing process of semiconductors may be helpful. At an earlier state of these proceedings, Division One of this court concisely summarized this process as follows:

“The first step involved in the process is creating a ‘composite drawing,’ i.e., a handrawn depiction of all layers of the product, resembling a schematic for a radio. This design is then ‘digitized’: a computer traces every line along an X-Y cursor, and stores the information. This is called a data base tape.
“[The manufacturer] then sends the pattern generator tape to a mask vendor, who puts it into a machine which, by use of a camera develops a reticle. The reticle is 10 times larger than the actual chip size and contains the information for just one of the 6 to 10 layers which comprise a chip.
“Next, the reticle is blown up 200 times—the resulting enlarged reproduction being called a ‘blow back’ or ‘overlay. ’ Once the reticle is confirmed as containing the correct design, it is placed in a repeat camera which reduces the design to actual size and repeats it over and over again on a chrome piece or ‘mask’ which then becomes the actual production tool.” (People v. Superior Court (Moore) (1980) 104 Cal.App.3d 1001, 1005 [163 Cal.Rptr. 906], italics added; see also 1984 U.S. Code Cong. & Admin. News, at pp. 5760-5763.)

*530 B. The Prosecution Case 7

On September 11, 1978, Larry Worth, the purchasing manager for National Semiconductor Corporation’s (NSC’s) computer operations group, participated in a sales meeting with a Japanese semiconductor manufacturer. The meeting was also attended by Andrew Moore. During the meeting, Moore asked Worth to step aside, and inquired whether Worth might be interested in buying certain fast memory chips being produced by Intel Corporation (Intel), together with the process for manufacturing them.

At the time, NSC was working on a memory board to upgrade certain IBM systems and they were interested in Intel’s 2147 device, a very fast state-of-the-art chip. Worth told Moore that for NSC to be interested, “they would have to be Intel . . . .” Moore confirmed that they were. He indicated that the person who had them (who later turned out to be appellant) was then in Europe selling them to foreign semiconductor corporations, but he was expected back in a week. When asked the price, Moore said it would be $200,000 per processor, or $1 million to $2 million on a group deal. Worth told Moore he would “take it to Charlie”—Charles Sporke, president of NSC.

Worth advised Sporke of the offer and then telephoned Moore to tell him that NSC was interested “as long as they were Intel parts . . . .” Moore again reassured Worth and said he would let Worth know “when the fellow that had them was back in town . . . .”

Meanwhile, Sporke contacted officials at Intel. At his request, Worth met with security agents from both NSC and Intel and the two companies decided to pursue a joint investigation. Intel representatives contacted the Santa Clara Police Department for assistance and officers from the detective division were assigned to the case.

On September 19, 1978, Moore telephoned Worth to tell him his principal was back from Europe. Moore arranged for Worth to meet with them later that day at 1030-H East Duane Avenue in Sunnyvale, the offices of appellant’s business, Semiconductor Systems, Inc. (SSI). Before going, Worth was equipped by police officers with a hidden transmitter so his conversations could be monitored and recorded by the Santa Clara police.

That afternoon, Worth met with Moore and appellant Gopal at the East Duane Avenue offices. They discussed various memory chips from Intel, *531 including the 2114 and 2147 devices. During their conversation, Gopal characterized the chips as being proprietary information of Intel. 8 Using a blackboard, Gopal noted the various model numbers, their availability, the prices per mask and per process, and offered to sell them to Worth. He indicated a copy of Intel’s 2147 could not be ready until December, so the discussion focused on the 2114. Prices of $150,000 for the data base tape from which to produce the 2114 and $250,000 for the process were mentioned. Similar prices were mentioned for the Intel 8080 and other Intel products they discussed. Gopal suggested that payments be made by check to a Hong Kong company, and that any invoices referring to the transaction be for “design and consulting.” After further discussion of the financing, Gopal again reassured Worth that by buying his materials, “you’ll get the same parts as Intel . . . .”

Changing the subject, Gopal then asked Worth if Worth was interested in selling any of NSC’s circuits—specifically, a Calma data base tape for National’s 8251. 9 According to Worth, Gopal “offered me $10,000 for me to get these tapes any way I could get them. . . . [¶] I would have had to steal them.” Gopal offered to pay Worth in cash. “All I want is the tape.” When Worth expressed concern about the legal ramifications, Gopal said he would not use the tape to produce a chip in this country, nor would it be sold in the competitive world market. “Most of my clients are using it for in-house process.”

The next meeting was on September 25 at a Chinese restaurant in San Jose. Gopal, Moore and Worth were joined by Thomas Dunlap, an Intel employee acting as if he were employed by NSC.

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Bluebook (online)
171 Cal. App. 3d 524, 217 Cal. Rptr. 487, 1985 Cal. App. LEXIS 2433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-gopal-calctapp-1985.