Worden pleads guilty in Kodak
trade-secrets case

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Former Eastman Kodak Co. manager Harold Worden last week pleaded guilty to a felony count of interstate transportation of stolen property.
As part of a plea bargain, Worden will serve up to a 15-month split sentence and pay a fine of up to $30,000. The split sentence means Worden can serve half the time in a correctional facility and half in an alternate form of arrangement.
The felony count carries a maximum punishment of 10 years’ imprisonment and a $250,000 fine, or both.
In accepting the plea bargain, Worden told U.S. District Court Judge Michael Telesca he understood he would give up the right to appeal. Worden also waived his right to a jury trial.
Assistant U.S. Attorney Martin Little- field said if the case did proceed to trial, the government would have presented evidence obtained from a search conducted by the FBI in May 1996 at Worden’s home/business in Santee, S.C. It turned up thousands of documents owned by Kodak, many of which contained trade secrets.
“We intend to fully prosecute to the full extent of the law those people who would steal property of U.S. industry,” said Littlefield, who added that the government is satisfied with the plea agreement.
He said the investigation in the case is continuing.
Worden’s guilty plea does not resolve the civil suit Kodak filed against him in November. As part of his plea bargain, Worden agreed to cooperate with Kodak in its ongoing investigation into the loss of Kodak secrets.
Worden’s attorney, David Rothenberg, said his client is cooperating fully with Kodak. He declined further comment on whether the civil action against his client would be dropped in exchange for cooperation.
“We are very pleased with the outcome of the government’s case,” said Gary Van Graafeiland, Kodak’s general counsel. “It is a clear vindication of Kodak’s belief that Harold Worden engaged in criminal misconduct by misappropriating documents containing Kodak proprietary and trade-secret information.”
Van Graafeiland said Kodak views seriously the taking of intellectual property from the company. He added that it is not Kodak’s intent to prevent Kodak retirees from earning a living.
After leaving the company after a 28- year career, Worden launched a consulting business.
Kodak filed suit against Worden and another former employee, Kurt Strobl of Webster. Worden had served as a project manager for the 401 machine, which makes the acetate base used in consumer film.
Kodak’s suit accuses Worden of racketeering, alleging that he led other former employees to steal company secrets with the intent to sell the information to competitors. Worden’s consulting business was staffed with other Kodak retirees.
Kodak spokesman James Blamphin said that, to his knowledge, Strobl has not made any restitution attempts with the company.
Telesca is scheduled to sentence Worden on Nov. 13.