A Leak in CDMA Technology?

The Computer Investigation Department at Seoul District Public Prosecutor’s Office under the head of department Lee Duk-hong revealed on October 26 that Hyundai Syscomm is under investigation for illegally signing a sales contract which allows complete disposal of intellectual property rights regarding code division multiple access (CDMA) technology to the domestic affiliate of a foreign mobile operation company.

Prior to the investigation, the Ministry of Commence, Industry, and Energy filed a complaint against Hyundai Syscomm in August on violation of the overseas trade law that demands government permission when sending strategic technologies abroad, such as Hyundai Syscomm’s illegal sales contract with foreign firms that relinquishes intellectual property rights concerning CDMA.

Hyundai Syscomm, a CDMA telecom equipment manufacturer, arbitrarily entrusted CDMA commercialization technologies to the Chinese-American mobile operation company UT Starcom in March this year. These technologies were jointly developed by Electronics and Telecommunications Research Institute (ETRI), Samsung Electronics, and LG Electronics, amongst other firms.

To sell CDMA intellectual property rights to other firms, the consent of Samsung Electronics and other joint companies is necessary, but Hyundai Syscomm didn’t allegedly undergo the procedures.

Investigation reveals that although Hyundai Syscomm has not yet waivered CDMA intellectual property rights to the Chinese firm, the possibility of a leak in core technology remains as a fair number of employees have already been transferred to the firm.

Jin-Young Hwang buddy@donga.com