Arrested for Selling Key PDA Technology to China

The prosecution has caught a company selling the core technology of PDA manufacturing to China. Lately the Prosecutors’ Office arrested another business entity, which has sold the mobile phone manufacturing technology.

On September 29, 2002, Computer-Investigation Division of Seoul District Prosecutors’ Office (“CID,” Chief Prosecutor Han Bong-jo) arrested the CEO of Chunwoo Communications Research Institute, Inc. and its chief researcher for violation of the Act for Fair Competition and Protection of Business Information (AFCPBI).

According to the CID, the CEO worked as a technical director of Intech Telecom, Inc. and the chief researcher as the head research of Janet System, Inc. They allegedly sold to the Chinese Sky Group, whose major field of business is in telecommunication, the modem for whose creation the two suspects used, without authorization, the MASC source code and CPU control code. In turn, the codes were the properties of the two companies they had worked for.

The suspect CEO, when working for Intech Telecom, Inc., had already started preparing for his departure with the company. He allegedly stole documents related to, for example, development of wireless modem and wireless database building. He also reportedly signed up for a contract with SKY Group for reception of 1.2 billion won in return for the PDA technology.

In the meanwhile, the chief researcher, prior to leaving Janet System, Inc., allegedly copied onto a CO MOBITEXT source code, which is a source code for wireless modems.

The MASC is a protocol connecting the modem and the local computer. It is the key technology for PDAs. Worldwide, a handful of US and Sweden companies in addition to Janet, have the technology.

The CID has also found out that SKY Group retains 80% of Chunwoo Communications Research Institute, Inc.’s shares. Thus, it suspects that SKY, using the domestic corporation Chunwoo, has tried to steal the wireless data telecommunication technology. Consequently, the CID is focusing its investigation on this aspect of the crime.

Jung-Eun Lee lightee@donga.com