Infringements on intellectual property rights in Korea, including patent violations, trade secret breaches, and idea theft, will be subject to penalties of up to five times the amount of actual damages. (Image courtesy of Kobiz Media)
DAEJEON, Feb. 14 (Korea Bizwire) – From August, infringements on intellectual property rights in Korea, including patent violations, trade secret breaches, and idea theft, will be subject to penalties of up to five times the amount of actual damages.
The main feature of the revised law is the extension of the punitive damages limit from the current threefold to fivefold. This measure aims to prevent malicious leaks of technology and ensure effective remedy for the victims, reflecting the growing social consensus on the severity of technology theft.
According to the KIPO, this level of punitive damages is among the highest internationally. Unlike Korea, Japan does not have a punitive damages system for technology theft, and the United States, known for its stringent protection of technology, imposes a maximum of threefold damages for patent infringement and twofold for trade secret violations. Currently, China is the only other country that allows for up to fivefold damages.
Jung In-sik, director of the Intellectual Property Protection & International Cooperation Bureau at the KIPO, emphasized the need for an effective punitive damages system and mentioned that facilitating the collection of evidence necessary for calculating damages is essential. He also stated that the office plans to pursue further improvements, such as introducing a Korean-style evidence collection system in patent infringement lawsuits.
KIPO research shows that between 2016 and 2020, plaintiffs in patent infringement lawsuits claimed an average of 628.29 million won in damages, but the median awarded amount was only around 100 million won. This is significantly less than the median damage award of 657 million won in the United States (from 1997 to 2016).
The low compensation has led to a perception that imitating technology is more profitable than developing and holding patents or trade secrets. This has resulted in a vicious cycle where companies are discouraged from filing lawsuits due to insufficient damage awards, even if they win.
M. H. Lee (mhlee@koreabizwire.com)
