THREE local gaming entrepreneurs stood trial at Bao’an District People’s Court on Tuesday for the alleged infringement of business secrets. The men had left their previous startup and started another one, which investors from the first company allege created games that infringe on the first company’s business secrets.

    The defendants had hired several previous colleagues to work for their new business, the Southern Metropolis Daily reported yesterday.

    Yao Linqiang, one of the defendants, studied computer science at Fuzhou University before he started working for a local IT company. In 2008, Yao founded a company called Moon Browse to develop online games with a partner surnamed Huang.

    Yao’s brother and a second investor, surnamed Chen, invested 500,000 yuan (US$80,645) in Moon Browse. In 2009, Shenzhen Heaveng Network Technology owned by Shenzhen Huachengfeng Electronics Industry Co., invested 7 million yuan in Yao’s startup, accounting for 35 percent of the company shares.

    According to an agreement between the two sides, Moon Browse was supposed to develop an online game in 14 months. To support the game design, Heaveng lent more than 17 million yuan to the startup. The game was launched in 2012.

    Investors of the first company said the startup earned millions of yuan in the first two months after the game was launched, and accused the defendants of copying the game after quitting their jobs. Yao, the former CEO of Moon Browse, said he decided to quit because he lost control of the company after the investors sent a consultant to manage the company.

    In 2013, Yao, Huang and Chen, started Donggu Technology Co., with an investment of 20 million yuan from one of Yao’s relatives.

    Documents related to the trial show that a total of 26 previous technical staff were brought to develop online games for the new company.

    Last June, Shenzhen police arrested Yao, Huang and Chen for allegedly infringing on business secrets.

    Under Chinese law a “business secret” means information that a business has taken efforts to keep secret and may bring economic benefit to the owner of the secret. (Luo Songsong)