KIPO "Strengthening Prevention of Technology Theft... Improving Lenient Punishments"

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KIPO "Focusing Efforts on Strengthening Technology Theft Prevention"

The Korean Intellectual Property Office (KIPO) is stepping up efforts to prevent technology theft. The core of the plan is to increase the severity of punishments for technology theft, which has long been criticized as too lenient, and to place greater emphasis on swift dispute resolution and victim relief.

Lee In-sil, Commissioner of the Korean Intellectual Property Office (left), is holding a press conference at the Government Complex Daejeon on the 28th to explain the direction of the 'Technology Theft Prevention Measures.' Photo by the Korean Intellectual Property Office

On the 28th, KIPO announced the “Technology Theft Prevention Measures” containing these details. The measures focus on ▲ resolving the issue of lenient punishments ▲ establishing a one-stop dispute resolution system ▲ eliminating protection blind spots.

First, KIPO will work with the Supreme Prosecutors’ Office and the judiciary to revise sentencing guidelines in courts to impose stricter penalties for trade secret leakage crimes.

The revision of sentencing guidelines for crimes such as technology theft is intended to establish safeguards to protect the excellent technologies of domestic companies amid the intensifying technology hegemony competition centered on the U.S. and China.

According to the National Intelligence Service, from 2018 to 2022, a total of 93 cases of industrial technology leakage overseas were detected in Korea, with damages amounting to 25 trillion won.

On the other hand, suspects in technology theft cases received light punishments. The average sentence for suspects convicted of overseas trade secret leakage crimes last year was 14.9 months, which is far below the statutory maximum sentence of 15 years.

Moreover, 75.3% of all suspects received suspended sentences, making it difficult to avoid criticism of lenient punishments.

In April, KIPO and the Supreme Prosecutors’ Office submitted a proposal to the Supreme Court Sentencing Commission to raise sentencing guidelines for trade secret leakage crimes. With the Sentencing Commission adopting this proposal (in June 2023), sentencing guidelines are expected to be raised by April next year.

Since sentencing guidelines serve as a reference for judges when deciding sentences and whether to grant suspended sentences, KIPO expects that lenient punishments for technology theft cases will improve going forward.

KIPO is also pushing to introduce a “Korean-style Evidence Collection System.” This system allows experts designated by judges to directly investigate materials at the infringement site, making it easier for companies victimized by technology theft to collect evidence.

Additionally, KIPO plans to increase fines for corporate organizational trade secret leakage to three times that of individuals and improve the system to allow confiscation of manufacturing equipment to prevent secondary damage.

Measures to ensure swift dispute resolution when technology theft incidents occur are also being prepared. KIPO plans to establish an “Industrial Property Dispute Resolution Comprehensive Support Center” to enable one-stop administrative investigations, dispute mediation, and technology police investigations.

In the mid to long term, KIPO is also exploring enacting the “Industrial Property Dispute Mediation Act (tentative name)” and establishing a separate “Industrial Property Dispute Mediation Institute.”

Furthermore, KIPO is promoting the introduction of an “Idea Originality Certification System” to prevent situations where ideas are stolen during business proposals, transaction negotiations, or discussions.

This system focuses on electronically registering the specific content of ideas and materials exchanged during transaction negotiations to use as evidence to prove damages in case of idea theft.

Lee In-sil, Commissioner of KIPO, said, “KIPO is not only the main agency for intellectual property but also the authority responsible for the Unfair Competition Prevention and Trade Secret Protection Act. We will fulfill our duty to ensure appropriate sentencing guidelines for technology theft crimes are established.” He added, “Based on the technical expertise of KIPO examiners and adjudicators, we will continuously strengthen the role of technical adjudication and concentrate institutional capabilities to ensure technology theft disputes are resolved swiftly and fairly.”

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