Trade Commission Investigates Unfair Trade Practices Over 'Natural Gas Compressor Patent Infringement'

[Asia Economy Reporter Kwangho Lee] The Trade Commission of the Ministry of Trade, Industry and Energy held its 397th meeting on the 20th and announced the decision to initiate investigations into unfair trade practices regarding 'patent infringement of natural gas compressors' and 'patent infringement of curved cover protective films.'

In December last year, the Swiss company Burckhardt filed a request with the Trade Commission to investigate unfair trade practices, claiming that the Japanese company Ga (Respondent 1), which manufactured the subject goods (natural gas compressors) infringing its patent rights, and the domestic trading company Na (Respondent 2), which imported and supplied them to domestic companies, engaged in unfair trade practices.

After reviewing the applicant's investigation request and import customs clearance data, the Trade Commission judged that Respondent 1’s manufacturing of the subject goods infringing the applicant’s patent rights and Respondent 2’s importation of these goods into Korea may constitute unfair trade practices under Article 4, Paragraph 1 of the Unfair Trade Investigation Act.

The Trade Commission will determine whether unfair trade practices have occurred after conducting investigations over approximately 6 to 10 months, including written inquiries, on-site investigations, and technical briefings with both parties. If determined to be unfair trade practices, corrective measures such as suspension of imports of the subject goods and sanctions including fines will be imposed.

Additionally, the domestic small and medium-sized enterprise Whitestone Co., Ltd. filed a request with the Trade Commission to investigate unfair trade practices, claiming that the domestic company Da (Respondent 1), which imported the subject goods (curved cover protective films) infringing its patent rights from Hong Kong and China and sold them domestically, and the Hong Kong company Ra (Respondent 2), which supplied them domestically, engaged in unfair trade practices.

After reviewing the applicant’s investigation request and import customs clearance data, the Trade Commission recognized the possibility that Respondent 1’s importation and sale of the subject goods from China and Hong Kong domestically, and Respondent 2’s supply of these goods domestically, constitute unfair trade practices under Article 4, Paragraph 1 of the Unfair Trade Investigation Act.

If determined to be unfair trade practices, the Trade Commission plans to impose corrective measures such as suspension of imports of the subject goods and sanctions including fines.