KIPO "Idea Theft?... Strengthening Direct Sanctions and Administrative Remedies"

Amendment to Pukyung Act Promulgated on 20th, Effective from August
Patent Office Secures Effectiveness of Sanctions Against Idea Theft
‘Correction Recommendation → Correction Order’, Possible to Impose Fines
Administrative Investigation Results Can Also Be Submitted as Evidence in Civil Lawsuits
Expected to Prevent Idea Theft Damage to Vulnerable Companies

Mr. A provided detailed information about his idea during the process of proposing a business to Company B. However, the negotiations ultimately broke down, and he later discovered that Company B had utilized his idea in a similar form. The detailed exposure of his idea during the business proposal process became the root of the problem. However, Mr. A found it difficult to find technical experts to help remedy the theft of his idea, and he was worried that even if he filed a civil lawsuit, he would not be able to present clear evidence and would end up bearing only the litigation costs, leaving him in a dilemma.

Legal grounds have been established for the Korean Intellectual Property Office (KIPO) to directly assist victims like Mr. A, whose ideas have been stolen. KIPO announced that the amendment to the "Act on the Prevention of Unfair Competition and Protection of Trade Secrets" (hereinafter referred to as the Unfair Competition Prevention Act) was promulgated on the 20th.

The amendment includes provisions allowing KIPO to issue corrective orders for unfair competition acts such as idea theft, infringement of publicity rights including the name and portrait of celebrities, and imitation of product forms. If these orders are not complied with, a fine of up to 20 million won can be imposed. Based on this, starting from August, KIPO will be able to issue corrective orders and impose fines on offending companies when ideas are stolen during technology transactions such as business proposals, bidding, and contests.

In particular, companies that have suffered from idea or technology theft will be able to submit and utilize KIPO’s corrective order results, which are backed by technical expertise, as evidence in damage compensation lawsuits. This increases the likelihood that individuals and small businesses, who face limitations in evidence collection, can seek remedies through litigation.

Previously, KIPO conducted administrative investigations into unfair competition acts and could recommend corrective measures when violations were found (acknowledged). However, these recommendations were merely "recommendations," revealing clear limitations in preventing unfair competition acts in the industrial field. Recommendations alone were insufficient to ensure effective sanctions.

For the same reason, the industrial sector, especially small and startup companies, has been advocating for KIPO to take a direct role as a technical adjudicator and actively respond to technology theft.

The amendment was made reflecting these voices from the field. It aims to secure the effectiveness of administrative remedies by granting KIPO the authority to issue corrective orders and impose fines to promptly stop technology theft situations.

The fact that KIPO’s investigation results can be used as evidence in civil lawsuits adds significance to the amendment. The amendment includes a procedure to provide the entire investigation record as evidence to the court upon the court’s request and allows parties to directly review KIPO’s administrative investigation records. KIPO emphasized that this will be a starting point to improve the difficulty of securing evidence due to the inability to use administrative investigation results in civil lawsuits.

Jung In-sik, Director of the Industrial Property Protection Cooperation Bureau at KIPO, explained, “From now on, victim companies will be able to use KIPO’s corrective order results as strong evidence in damage compensation lawsuits. This means that the influence of administrative investigation results in litigation will be significant.”

He added, “As the competent authority of the Unfair Competition Prevention Act, KIPO will strive to prevent unfair acts that unjustly ride on ideas and the names and portraits of celebrities, ensuring that a sound transaction order is maintained.”

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