Feeds

HTC trio suspected of pilfering design IP

Investigators storm mobe maker's offices after firm sounds alarm

Top 5 reasons to deploy VMware with Tegile

Senior members of HTC’s design team have been detained by Taiwanese investigators on suspicion of defrauding the under-fire smartphone maker and stealing valuable IP.

HTC raised the alarm with Taiwan’s Bureau of Investigators after the suspects – including VP of product design Thomas Chien, R&D director Wu Chien Hung and design team senior manager Justin Huang – set up their own design company, report Bloomberg and Engadget.

The mobile phone company thinks the three have been stealing trade secrets, after it apparently caught Chien downloading info on the new Sense 6.0 UI before emailing them to contacts outside the company.

If that proves to be true, it would seem that HTC’s design team haven’t grasped the concept of data loss prevention technology.

The three are also suspected of conspiring with a third party design firm to issue false invoices for the One’s chassis design to the tune of NT$10 million (£215,500). They are said to have carried out the work in-house, but then arranged for the external firm to invoice HTC, and then split the cash between themselves.

Chien and Wu have now apparently been taken into custody while Huang and two others questioned were released on bail. Investigators also raided HTC’s offices on Friday night, seizing the suspects’ phones and laptops.

HTC didn't immediately get back to us with a statement, but sent Engadget the following:

The company expects employees to observe and practice the highest levels of integrity and ethics. Protecting the company's proprietary and intellectual properties, privacy and security is a core fundamental responsibility of every employee. The company does not condone any violation. As this matter is currently under investigation by the relevant authorities, we therefore refrain from further comments.

The developments are yet another unwanted distraction as the ailing Taiwanese smartphone maker battles poor financial results and sluggish demand for its handsets.

Shares tumbled to almost an eight year low at the end of July as the firm warned that Q3 may see its first ever operating loss. Profits were down 83 per cent in Q2 2013 compared with the same period in 2012.

The mobe maker has also been struggling to hang on to senior execs this year, with chief product officer Matthew Costello, VP of global comms Jason Gordon, product strategy manager Eric Lin and global retail marketing manager Rebecca Rowland all exiting. ®

Intelligent flash storage arrays

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.