Reducing Burden of Proof for SMEs in Technology Theft...Improving the 'Technology Dispute Mediation System'

Simplification of Dispute Mediation Procedures Linked to Prosecutors and State Agencies
Ministry of SMEs and Startups Prepares Improvement Plan for Technology Dispute Mediation System Including Introduction of Mediation Suspension

Technology Theft Graphic. Photo by Asia Economy DB

[Asia Economy Reporter Kim Heeyoon] The Ministry of SMEs and Startups announced on the 14th that it will improve and operate the technology dispute mediation system in a more SME-friendly manner to promptly resolve technology theft cases involving small and medium-sized enterprises.

This improvement plan was prepared to eliminate factors that increase the burden on SMEs, such as delays and litigation avoidance identified during the operation of the mediation system. The main points include simplifying the prosecution-Ministry of SMEs and Startups linked dispute mediation procedure and introducing a suspension system during mediation.

The prosecution-Ministry of SMEs and Startups linked dispute mediation was a means to resolve disputes through party agreements before disputes prolonged due to criminal trials or other reasons. However, it required additional application procedures, which had been a burden for SMEs.

Additionally, to correct the unreasonable aspect where mediation procedures are suspended when litigation or adjudication is filed by the parties, a suspension system was introduced that allows the procedure to resume if the infringement fact is recognized.

Under the current system, the Ministry of SMEs and Startups suspends mediation procedures when one party files litigation seeking judicial judgment, in line with the purpose of the mediation system to resolve disputes through party agreements. However, large corporations have abused this system by filing lawsuits that take a long time and cost for cases where infringement is recognized, inducing SMEs to give up relief procedures midway.

The improvements will be supported through the revision of the Operational Rules for SME Technology Dispute Mediation and Arbitration, which will take effect from the 15th.

Won Youngjun, Director of Technology Innovation Policy at the Ministry of SMEs and Startups, said, “The problem with technology theft cases involving SMEs is that it is difficult to prove the facts and that relief procedures for dispute resolution take a long time.” He added, “Through this system improvement, the burden of proof on SMEs will be minimized, and it will prevent large corporations from prolonging disputes through litigation, which will be a great help to SMEs struggling with technology theft.”

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