TRADE ETHICS IN SILICON VALLEY
Although the arrest of Japanese businessmen by the Federal Bureau of Investigation this week set off a furor, the acquisition of trade secrets by legal and illegal means has always been part of doing business in Silicon Valley, the center of the American electronics industry. In the pressure cooker atmosphere of this area, where product life cycles are rarely more than two years, success or failure can turn on the difference of a few weeks in product introduction dates. Add to that a clannish atmosphere in which most executives have at one time worked with one another, a lack of public scrutiny until recent years and an endlessly migrating middle management and technical staff, and all the ingredients are in place for industrial intelligence, and at times espionage. What seems to distinguish the Japa- Mitsubishi pulled back from its denial that it had conspired to steal information from I.B.M. Page D3. nese case, according to Silicon Valley executives, is the size of the payments, involving hundreds of thousands of dollars, for International Business Machines computer secrets, bought via Glenmar Associates, an F.B.I. front that acted as a consulting firm. Also unusual were the participation of Federal law enforcement authorities and the fact that it took place in the ''systems'' business rather than in computer parts, such as semiconductors.