Preventing Advanced Semiconductor Technology Leakage: Legal Measures (Comprehensive)

The court has granted a provisional injunction prohibiting a former SK Hynix researcher who moved to the U.S. company Micron from changing jobs. This researcher was in charge of designing high-bandwidth memory (HBM), which is gaining attention as an artificial intelligence (AI) semiconductor, but violated a non-compete agreement by moving to a competitor. Micron recently surprised the industry by skipping the 4th generation HBM and announcing mass production of the 5th generation. As competition in advanced semiconductors intensifies, the level of punishment for technology leakage is also expected to increase.

SK Hynix Headquarters, Icheon-si, Gyeonggi-do [Image source=Yonhap News]

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According to the legal and semiconductor industries on the 7th, the 50th Civil Division of the Seoul Central District Court (Chief Presiding Judge Kim Sang-hoon) recently granted SK Hynix's provisional injunction request against former researcher A and ordered a payment of 10 million KRW per day if violated.

A joined SK Hynix and worked as a senior researcher in the Memory Research Institute design team, a senior researcher in the DRAM Design Development Division design team, a senior member of the HBM business, and the project design manager of the HBM design department, handling DRAM and HBM design-related tasks. He resigned in July 2022 and moved to Micron. However, A was not allowed to immediately join a competitor in the same industry after resignation. Since 2015, while working at SK Hynix, A had signed an information protection pledge every year stating that he would not work for a competing company for two years after resignation. Around the time of his resignation in July 2022, he also signed a non-compete agreement and a confidentiality agreement regarding national core technologies. The non-compete agreement specifically listed competitors subject to the restriction, including Micron, and stipulated a two-year non-compete period. After confirming A’s job change, SK Hynix filed a provisional injunction in court in August last year. A is currently known to be employed at Micron’s headquarters with an executive position.

In its ruling, the court restricted A’s business activities, stating, "Until July 26, A must not be employed or work at Micron in the U.S. or any of its branches, sales offices, workplaces, or affiliates, nor provide consulting, labor, or services through advisory contracts, consulting contracts, service contracts, or dispatch contracts." The court added, "Considering the tasks A was responsible for during employment, his position, the trade secrets and information of SK Hynix that he likely acquired, his employment period, and the creditor’s leading position in the related industry, the creditor’s interests protected by the non-compete agreement are recognized as valuable." Furthermore, "If the information acquired by A is leaked, Micron could significantly shorten the time required to acquire business capabilities equal to the creditor in the same field, while the creditor’s competitiveness would be substantially damaged. Also, restoration would be practically impossible if the information is leaked." The court also noted the necessity of ordering indirect enforcement to ensure the effectiveness of the injunction.

SK Hynix stated regarding this ruling, "Technologies related to DRAM design, including HBM, are included in national core technologies," and added, "The court’s decision is lawful and welcomed."

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