Korea Technology Wins Second Round in Company Name Lawsuit

[Asia Economy, reporter Sung Kiho] KOSDAQ-listed Korea Technology has once again won a lawsuit against Korea Technology Group regarding the use of their trade names.

On October 14, Korea Technology announced that Korea Technology Group's objection (case number 2020Kahap21139) to the Seoul Central District Court's previous injunction prohibiting the use of the trade name (case number 2019Kahap21943), filed in May, was dismissed. As a result, Korea Technology Group is no longer allowed to use the trade name.

The 60th Civil Division of the Seoul Central District Court, which handled the objection case, cited several reasons for upholding the need for the injunction prohibiting the use of the trade name: ▲ the similarity of the trade names, which could cause confusion or misunderstanding ▲ the existence of an 'improper purpose' to cause harm to others ▲ the established recognition of Korea Technology's business mark ▲ and the fulfillment of the requirements under the Unfair Competition Prevention Act.

Previously, on May 14, the Seoul Central District Court ruled, "Korea Technology Group and its affiliates engaged in the manufacturing and sale of automotive parts, as well as holding companies, must not use the trade name on signboards, promotional materials, business plans, business cards, brochures, and similar items."

The court explained, "The automotive batteries and accumulators produced by Korea Technology Group's subsidiaries are recognized by consumers as automotive parts. Furthermore, the company's own business reports classify businesses such as tires and battery tubes as related to automotive parts, so the defendant's argument is groundless."

The court also stated, "There is a significant overlap between Korea Technology's existing automotive electronic parts manufacturing and sales business and that of Korea Technology Group, which creates a real risk of confusion among industry customers. Therefore, there is a need to prohibit and prevent violations related to the use of the trade name in the automotive parts manufacturing and sales business."

Korea Technology has been using the trade name since 2012 and recorded sales of approximately 150 billion KRW in the first half of this year. The company is currently engaged in automotive electronics, 5G smartphones, IT wearables distribution, and construction businesses, and has Daewoo Shipbuilding & Marine Engineering Construction as a subsidiary.

This content was produced with the assistance of AI translation services.