Former LG employee leaks $1b in top secret plasma info to Chinese manufacturer
We've seen some pretty shady dealings from disgruntled ex-employees in the past, but this one may have skyrocketed into the upper echelon of tales of corporate deceit. As the story goes, a 49-year old man known only as Jeong felt the need to copy over some 1,182 top secret plasma display technology-related files onto his personal drive before waltzing out of LG's doors for the final time in July of 2005. A few months later, Chinese manufacturer Changhong-Orion PDP-Chaihong welcomed him with open arms and paid him a fat salary of roughly $300,000 a year (not to mention a few perks: free apartment, vehicle etc.), while casually accepting both the aforementioned files and continued insider leaks at LG -- information supposedly valued at over a billion dollars. But despite Jeong's arrest upon his last return home to Korea, Changhong is still apparently on schedule to produce plasma panels based on LG's technology come this December. Can you say: hot water over international trade-secret law?
[Via The Raw Feed, image courtesy of RPG Classics]
[Via The Raw Feed, image courtesy of RPG Classics]





















Reader Comments (Page 1 of 2)
Beau @ Mar 5th 2008 8:27PM
You can say that again.
Bevon Findley @ Mar 5th 2008 8:06PM
Can you say bring out the whips
Aguiluz @ Mar 5th 2008 8:30PM
A bit off topic, but that picture on the article looks familiar. I just can't place it. Anyone who can jack my memory?
3rdsun @ Mar 5th 2008 8:36PM
Can you say only in China
Raiden @ Mar 5th 2008 8:43PM
can you say it's not only in china?
corporate espionage... it's common place... grow a brain... like seriously?
F1 incident coming to mind? huh?
Kevin S @ Mar 5th 2008 8:51PM
Aguiluz, looks like the video game Parasite Eve for ps1.
hemmy @ Mar 5th 2008 9:12PM
Raiden, one more time please, I'm not sure it has sunk in.
ja$on @ Mar 5th 2008 10:28PM
hemmy, don't be a jerk.
dan2600 @ Mar 6th 2008 9:04AM
haha only in china, my thoughts exactly, the only country in the world were companies will PUBLICLY steal from another company.
the sadder part is American and other distributors will still buy from these crooks
Nick @ Mar 6th 2008 11:35AM
If Changhong-Orion cared about the guy, which im sure they don't, they could just try and prove that they found out the information through "reverse engineering" and claim the guy didnt pass on files.. and he could get off (hey OJ got aquited)... but whats the likelyhood of them doing that? The company got the information they wanted and now they dont have to pay off the informant anymore.. Sounds like a great business day for Changhong.
Zhalfim Deyn @ Mar 6th 2008 1:19PM
@Aguiluz
I am fairly sure that's Parasite Eve 2 for the PS1...not Parasite Eve 1
matt @ Mar 5th 2008 8:10PM
it's not like LG's making the same plasmas they were 3 years ago
Mr.Tech @ Mar 5th 2008 9:18PM
Even though LG isn't making the same Plasma 3 years ago. Changhong-Orion can always reverse engineer LG current plasmas with the information that they bought from Jeong. So it does make a difference from my point of view. Changhong-Orion already has the blue prints to create any LG copies (new or old). Unless LG create a new core layout for their Plasma than that will be a different story. If you're going to say LG plasma technology is copy righted than Changhong-Orion probably changed a lot of things to make it theirs. There's always a way to bypass things if you have the time and money.
Dave @ Mar 5th 2008 10:44PM
hey um Mr. Tech...are you from China?
Reverse engineering things isn't that easy. If it was, AMD wouldnt be in the shitter with laptop processors right now. Cheers.
Mr.Tech @ Mar 6th 2008 3:10AM
@ Dave: I live in the US but I was born in China, got a problem? I never said reverse engineering was easy but it would be easy if you have a guy who used to work with LG. That and the fact he has blueprints of LG plasma technology. Why do you think Changhong-Orion is paying this guy $300,000 annually w/ some extra perks. Engadget: Changhong is still apparently on schedule to produce plasma panels based on LG's technology come this December, I guess Changhong-Orion manage to copy LG technology after all.
Flashpoint @ Mar 5th 2008 8:11PM
Hasn't anyone noticed that stealing information and using it is what the Chinese are good for?
I don't want to be construed as a racist because unlike most Americans I've actually taken the time to study Chinese culture - IN CHINA. I lived in Fudan University in Shanghai and attended language school. I love the Chinese people but I'm very dissapointed that they do not respect international copyrights.
I think America has wized up about allowing them to be near sensitive military data - such as the F22 schematics or our newer nuclear secrets. Its not about racism...but, China is like the second comuning of the Soviet Empire and we need to regard many of them as dangerous as KGB agents.
After Win Ho Lee, I'm suprised that anyone would allow them to be able to access sensitive information.
rokerovakero @ Mar 5th 2008 8:18PM
nah... it's racism... you shouldn't generalize... and besides, most companies will use secret data from competitors in the blink of an eye, some might even change a few things to avoid any legal problems, but everyone copies somehow. That's why even KFC has a secret recipe...
Mark L. @ Mar 5th 2008 8:19PM
LG is a Korean company. Why the hell would a Korean company use American copyright laws and then a Chinese company should also obey them? I don't give two shits about these companies who can't keep their data private.
Neoprimal @ Mar 5th 2008 8:19PM
Here we go....ugh. Some of you are really stuck in the early 1900s.
Yes, yes, only the Chinese commit industrial espionage. Honestly some of you need to really chill with the prejudice on this forum. Lets TRY to keep the comments focussed as much as possible on the news at hand without letting your personal distaste for a color/race/culture/country/people seep in. Please?
Aguiluz @ Mar 5th 2008 8:26PM
"allow them to be able to access sensitive information."
Funny thing is, LG did not encrypt their "Top Secret Files." Wow, now that's amazing. I even encrypt my por... *err* passwords before stuffing them in my USB key.
It's like your top secret identity credentials being stored in the garage in clear text. Easy to get, easy to read.
*DISCLAIMER: Me, Aguiluz, Does *N*O*T* store shocking content on my USB Drive. That's the Aguiluz Promise. :)
ben @ Mar 5th 2008 8:45PM
@Mark. L, look up WIPO.
http://www.wipo.int/members/en/
It's not American copyright law, it's the world's Intellectual Property laws.
Craig B. @ Mar 5th 2008 9:43PM
@rokerovakero: Nah, it's not Racism. Notice the OP didn't say "Asians", but said "Chinese". That's a country and a culture. It's possible to comment on the culture and not be commenting on the race. The mistake Flashpoint makes is excusing what he says as not "racist", since he's obviously affraid of the disqualifying word being pulled on him.
Now, whether it's fair to say that China is all about stealing technology, I don't think that's true, even though this is a very serious problem in China as recognized by various international IP organizations. Thinking that Israel commits crimes against Palestinians does not make you anti-semitic. Saying the Russians have a terrible time with organized crime doesn't make you anti-white. Saying that Venezuela is corrupt doesn't make you anti-hispanic. Saying Zimbabwe is poor as ass doesn't make you anti-black. Saying America is obese doesn't make you anti-white (I used the white one twice, sorry). These are generalizations, and while based on some truth, are not not wholly correct (except maybe Zimababwe). While the countries conjure up mental images of race, they are not motivated by the racial aspect in and of themselves.
Sorry this goes a bit off-topic, I'm sure I'll get a low rank for it.
scslmd @ Mar 5th 2008 9:46PM
I fail to see your analogy of Mr. Lee and the guy who walks out and basically sold the information to anther company. My brief research showed that Mr. Lee pled guilty to mishandling classified information but won his civil lawsuit against the media and government for $1.6 million dollars.
And yes, your generalization of a specific ethnicity is plain racism. Don't delude yourself.
greg @ Mar 5th 2008 11:51PM
yo, I'm chinese and seriously things need to be done regarding international copyright.
rokerovakero @ Mar 6th 2008 1:11AM
yeah... I do love my knockoff Air Jordans...
JohnSearle @ Mar 6th 2008 4:12AM
@Craig B.
Pay close attention to the second definition... What I get from this is that race can apply to a cultural group.
From Merriam-Webster:
----
Main Entry:
3race
Function:
noun
Etymology:
Middle French, generation, from Old Italian razza
Date:
1580
1: a breeding stock of animals
2 a: a family, tribe, people, or nation belonging to the same stock b: a class or kind of people unified by shared interests, habits, or characteristics
3 a: an actually or potentially interbreeding group within a species; also : a taxonomic category (as a subspecies) representing such a group b: breed c: a category of humankind that shares certain distinctive physical traits4obsolete : inherited temperament or disposition5: distinctive flavor, taste, or strength
---
MEAT! @ Mar 5th 2008 8:12PM
Why don't you ever hear about Chinese or Russians leaking information to us? Why should they get all the stolen technology?
SimonRichards @ Mar 5th 2008 8:18PM
obviously they don't have anything worth leaking lol
Tony @ Mar 5th 2008 8:24PM
Yes, that's why these Asian countries were forced to open their ports. So that they could steal secrets from us.
eggothewaffle @ Mar 5th 2008 8:48PM
Open their ports eh? I bet they're using homebrew drivers instead of official WHQL signed ones! >:[
ben @ Mar 5th 2008 8:53PM
He means sea ports maybe? I'm in the dark--he should elaborate.
KEROLiUKAS @ Mar 5th 2008 8:56PM
Nothing worth leaking... You seriously are an ignorant butthole.. + they didn't steal anything from america, last time i checked, LG wasn't an American company.
SimonRichards @ Mar 5th 2008 9:02PM
@KEROLiUKAS
It's called a JOKE.
Only one ignorant butthole here, and its not me. See if you can work it out.
Oh, and LG is a South Korean company.
Tony @ Mar 5th 2008 11:46PM
Yes, I meant sea ports; I don't see how that was unclear.
It was a reference to some page in a recent history.
greg @ Mar 5th 2008 11:54PM
actually, I believe that was more about opening out markets for sale of goods.
Reader @ Mar 6th 2008 12:10AM
Tony, it was a joke...
Lo_Opy! @ Mar 5th 2008 8:12PM
hot water...
why not the LS2LS7? @ Mar 5th 2008 8:13PM
duh
Kris Quigley @ Mar 5th 2008 8:14PM
i can: 热水
Raiden @ Mar 5th 2008 8:46PM
you've just won this: 热水壶
Flashpoint @ Mar 5th 2008 8:15PM
...second coming...
tom @ Mar 5th 2008 10:01PM
you are dealing with a communist regime where the party is above the law
check out the following
http://news.xinhuanet.com/legal/2008-01/04/xin_1620105042148609204667.jpg
http://s1.youmaker.com/other/2007/8-13/oth30305218086107f67c89d4b3da13fabdde60a2728001.jpg
Backlin @ Mar 5th 2008 8:18PM
Good thing that name is an alias.
Malfoy Roark @ Mar 5th 2008 8:48PM
If they can't keep them private!?! Their own employee stole them. How are you going to prevent your own employees who work on something from having access to what they are working on? That's like saying its MS's own fault if a top Win OS programmer decides to join the OOS movement and makes the Windows source public.
adrian @ Mar 5th 2008 8:20PM
You can't really blame the Chinese. Why spend huge amounts on R&D, when you could pay a pissed off employee for the blueprints from a rival. In the real world no matter what country your from, There are no honest people, you have learn to cheat your way to success.
adrian @ Mar 5th 2008 8:22PM
You can't really blame the Chinese. Why spend huge amounts on R&D, when you could pay a pissed off employee for the blueprints from a rival. In the real world no matter what country your from, There are no honest people, you have learn to cheat your way to success.
Tony @ Mar 5th 2008 8:31PM
You can say that again.
Sachin @ Mar 5th 2008 9:19PM
that again.
atrain @ Mar 5th 2008 9:43PM
That?
adrian @ Mar 6th 2008 7:55AM
Why?.