Reigncom are Korea’s leading manufacturer of MP3 players and they produce the famous iRiver model. One of their former vice presidents, a man named only as ‘Lee’ by the police, is being held over allegations of stealing technology from Reigncom, and setting up his own company in competition.

The rival company he set up apparently uses the same MP3 technologies that were developed by Reigncom while he was at the company.

Lee left Reigncom in October 2006 to form his new business. When he formed his new company he poached nine different members of Reigncom, all of whom were involved in developing MP3 player technology. He allegedly told the employees to bring the technologies they developed with them to his new company.

The MP3 players produced by Lee’s new company were very similar in their circuit diagram and source codes to those produced by Reigncom.

Although Lee claims he was able to use the same source code as Reigncom under a contract with his former employer, the police disagree, stating:

The contract does not indicate that Lee’s company can use the same source codes.