(image: Korea Bizwire)
SEOUL, Nov. 18 (Korea Bizwire) — Efforts are underway to mandate the signing of confidential maintenance contracts when big firms receive technical data from their subcontractor small and medium-sized enterprises (SMEs).
The Ministry of SMEs and Startups announced on Tuesday that the revision of the law to promote mutual cooperation between large companies and SMEs passed the Cabinet meeting.
Under the revision, when SMEs provide technical data to large companies, the two parties have to sign a confidential maintenance contract. If this rule is not followed, a fine of less than 10 million won (US$9,000) can be levied.
The ministry plans to make and provide a standard form of the confidential maintenance contract to large companies and SMEs.
If large companies abuse the technical data provided by SMEs or pass it to other companies, thereby causing damage to SMEs, they have to pay out compensation valued at up to three times the amount of damages.
These moves aim to prevent cases in which large companies misappropriate technology from SMEs to produce items for themselves or provide the technology to other SMEs.
The revision also eased the burden of proof for SMEs when they file a compensation claim for damages caused by the theft of intellectual property by large companies.
Thus far, it was difficult for SMEs to file a compensation claim against large companies primarily due to concerns about cancellation of contracts or the suspension of business even when their technologies were stolen.
Even after filing such suits, SMEs often had difficulty proving their damages.
Kevin Lee (kevinlee@koreabizwire.com)
