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Subject |
Business Secret Protections Strengthened Under New Law |
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18 |
Name |
IP_Park |
Date |
2004/06/07 09:53:15 |
Homepage |
http://www.ippark.com |
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Business Secret Protections Strengthened Under New Law
To improve protection of business secrets, the Korean Intellectual Property Office (KIPO) has published Guide to Protection of Business Secrets and Lets Protect Business Secrets. The two publications are being distributed to government offices, enterprises and business associations in line with KIPOs initiative to reinforce laws and procedures related to protection of business secrets.
The guide consists of case studies and explanations of laws and regulations related to business secret protection, while the second publication is a condensation of the guide into frequently-asked-questions format for easy reference.
KIPO decided to develop the publications ahead of the implementation of the new law on protection of business secrets and to help spread awareness of the strengthened legal regime.
Highlights of the Revised Act on Prevention of Unfair Competition and Protection of Business Secrets
July 23, 2003: Public announcement of the proposed new law
December 22, 2003: National Assembly passed the law
July 21, 2004: Law will go into effect
Significance of Revised Law
The law stipulates new types of unfair competition and approaches the problem of infringement on business secrets as not only a problem for the enterprises directly involved but also from the perspective of protecting national wealth. Cyber squatting and piracy of domain names are included in the new law following the lead of advanced countries like the U.S., Japan and Germany.
The copying of commodity shapes and designs also is incorporated into the revision in clauses modeled after regulations in Europe, Japan and other countries.
Protection of Business Secrets from the National Economy Perspective
The penalty and fines for piracy of business secrets were raised to an appropriate level and include 2-10 times the illegal income gained as a result of the piracy. In the United States, individuals are subject to fines up to US$500,000 and organizations fines up to US$10 billion.
Those subject to prison terms for piracy of business secrets are extended. Under the previous law, staff and members of the pirating firm were subject to imprisonment, but the new law extends to anyone involved in industrial espionage, as is the case in Germany.
Previously, the business secrets covered under the law were confined to technical matters. However, the new law now will include management strategies, investment plans, knowhow and other key business matters as business secrets.
To prosecute individuals or organizations under the new law, there is no longer a requirement for the injured party to file a complaint or a lawsuit. Legal action may be taken by the proper authorities upon discovery of a case involving suspected piracy of business secrets.
Furthermore, even if the plan to steal business secrets is unsuccessful, those involved in the planning may still be prosecuted under the law.
If an enterprise is involved in business piracy, the individuals as well as the offending corporation itself can be punished under the law.
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