The photos and videos were allegedly taken by Lee after he drugged the women, with Lee currently on trial over the allegations.
The 12 people, who were aged between 20 and 40, came from all walks of life – among them were a chef, a software engineer, a salesman along with a student – and were booked for spreading lewd materials as well as violating privacy laws.
They all told police that media reports on the issue had made them curious to see just what the fuss is about, which caused them to seek out and share the racy photos and videos via peer-to-peer file sharing programmes.
All 12 have since been released on NT$20,000 (S$833) bail.
The Taiwan police conceded that the arrests, the results of a massive operation which saw 50 police officers raiding the homes of the 12, were too little too late.
The police expressed that this operation cannot stem the spread of the racy videos and photos, or reduce the harm it causes to the women involved, but said it will serve to "educate people that spreading lewd materials is against the law".