A couple accused of corporate espionage using Trojan software have been indicted in a Tel Aviv court.

Michael Haephrati, 44, and Ruth Brier-Haephrati, 28, were extradited from London in January, and are said to have confessed to most of the charges against them.

According to the indictment, the couple managed a company known as Target-Eya. Michael Haephrati is accused of developing the malware, while Ruth Brier-Haephrati is accused of marketing the malware to private investigators, who bought the code and installed it onto the computers of their clients' rivals.

The Trojan software is said to have been used to spy on the Rani Rahav PR agency (whose clients include Israel's second biggest mobile phone operator, Partner Communications), and the HOT cable television group. Another alleged victim is Champion Motors, which imports Audi and Volkswagen cars.

"This case sends out a strong message around the world that the menace of spyware is growing, and that companies need to realise that it's not just home users who are at risk," said Graham Cluley, senior technology consultant for Sophos.

"Organised criminals are hell bent on stealing information and making a profit at the expense of big business."

The Haephratis are also accused of spying on the computers of Amnon Jacont and Varda Raziel-Jacont, sections of whose book mysteriously appeared on the internet before it was published. Raziel-Jacont is the father of Michael Haephrati's former wife, Natalia.

Ruth Brier-Haephrati has been formally charged with aggravated fraud, unlawful computer access, virus insertion, installing tapping equipment, invasion of privacy, managing an unlawful database, and conspiracy to commit a crime.

Michael Haephrati is charged with lesser offences of assisting his wife in these activities.