I imagine you moved to where you are now because the pay was quite good. If that is the case, rather than threatening legal action (win or lose, don't see how y

I imagine you moved to where you are now because the pay was quite good. If that is the case, rather than threatening legal action (win or lose, don't see how you'd stay at the company) I would continue to do what you do. Just keep it on the down low. However, given that your startup revolves around iPhone development, as does your current position, it's likely they're concerned that you will get burnt out on it... I'm not defending their position, just stating a possibility.