Looked at the videos some more and paused them a few times to look at details.
There are 3 magnets in the key. There are different inserts to hold the magnets and the magnets are inserted with the North/South poles inwards or outwards. The company claims more than 1,500 possible combinations. Given the 3 magnet locations it back calculates to 13 possible variations for each of those magnets P(13,3) = 1,716. Given the North/South orientation of a magnet, or no magnet at all (a marketing gimmick to get more than 1,320 combinations?), that leaves 6 variations. There seemed to be 6 slots in the plastic box with key-building components and that would confirm that idea. So there are probably 6 different plastic inserts that can go into any of the 3 different slots in the key and each of those six inserts places the magnet in a different location within the 3 areas for magnets. So it comes down to 3 magnets being in 1 of 6 locations and with the north polarity pointing inwards or outwards relative to the center of the key--that part is key, the north/south poles do not point into the lock as would be expected, they point parallel to the lock.
Also found an article on the Locksmith Ledger:
http://www.locksmithledger.com/article/12122753/c-is-for-capitol-cam-lock That article has some pictures of the inside of the lock, and the fourth one is really interesting.
It is clever, it is not a matter of attracting or repelling pins to a shear line, rather three brass cams with magnetic cores have to both be brought into a given alignment before the key can be turned, hence the north/south poles being parallel to the lock. I'd be a little concerned about what happened if the key lost some magnetic strength over time, but otherwise it is clever idea. If one hollowed out a key to use as a tension wrench it would be interesting to see if one would get any feedback if they played a magnet over the three areas while applying pressure to the wrench.
