Assemblyman Song Gap-seok's Proposed 'Small and Medium Business Technology Infringement Prevention Act' Passed in National Assembly Plenary Session

Published 01 Feb.2024 17:49(KST)

Significant Increase in Liability for Technology Infringement Damages from Current 3x to 5x

Song Gap-seok, a member of the National Assembly (The Democratic Party of Korea·Gwangju Seo-gu Gap), who spearheaded the 'Small and Medium Enterprise Technology Infringement Prevention Act' (Partial Amendment to the Act on Fair Transactions in Subcontracting), saw the bill pass the National Assembly plenary session on the 1st.

Assemblyman Song Gap-seok's Proposed 'Small and Medium Business Technology Infringement Prevention Act' Passed in National Assembly Plenary Session

This amendment strengthens the liability for damages from three times to five times the amount of loss incurred by the subcontractor when the primary contractor misappropriates the subcontractor's technology, and specifically stipulates the criteria for estimating damages for companies affected by technology infringement.

The current law lacks separate standards for calculating compensation for subcontractors suffering from technology misappropriation, making it difficult for companies affected by technology infringement to receive fair compensation.

With the passage of this amendment, it is expected to expand the scope of recognized compensation for losses of companies affected by technology infringement, strengthen punitive damages against infringing companies, and thereby ensure the effectiveness of technology infringement prevention and damage compensation systems.

Assemblyman Song Gap-seok stated, "Technology infringement remains serious, with damages to small and medium enterprises amounting to 280 billion won over the past five years," and added, "We will continue to do our best to establish systems to prevent damage and strengthen competitiveness of SMEs, including eradicating technology infringement."

Meanwhile, Assemblyman Song Gap-seok has strongly criticized and led efforts to resolve the actual situation of technology theft from SMEs by large corporations such as Hyundai Heavy Industries, LG Electronics, and Kakao. In 2021, the 'Small and Medium Enterprise Technology Protection Act' (Partial Amendment to the Act on Support for Protection of SME Technology), which he spearheaded to protect SME technology, was selected as an excellent bill at the 1st Korea National Assembly Legislative Awards.