Court Rejects Consecutive Appeals by Japan's Mitsubishi Against 'Patent and Trademark Seizure Orders'

[Asia Economy Reporter Kim Hyung-min] Mitsubishi Heavy Industries of Japan, which is engaged in a tug-of-war with South Korea over compensation liability for forced labor victims during the Japanese colonial period, appealed against the seizure order of its patents and trademarks in South Korea, but the court did not accept the appeal.

According to the legal community on the 25th, the Civil Appeals Division 3 of Daejeon District Court (Chief Judge Lee Hyo-seon) dismissed Mitsubishi Heavy Industries' appeal against the seizure order of patent rights filed by forced labor victims on the 20th.

The court is known to have judged that there is no obstacle to compulsory execution based on the Supreme Court ruling that "the execution claims related to this case cannot be subject to the Korea-Japan Claims Agreement."

Forced labor victims and their families filed a damages lawsuit against Mitsubishi Heavy Industries at the Gwangju District Court in October 2012, and in November 2018, the Supreme Court finalized a ruling ordering "the defendant to pay 100 million to 150 million KRW in consolation money per plaintiff." The Supreme Court made this judgment at that time.

Accordingly, other seizure order appeals regarding patent and trademark rights filed by Mitsubishi Heavy Industries against other forced labor victims, which were dismissed, also received the same decision.

In February and March, the Civil Appeals Divisions 1 and 2 of Daejeon District Court dismissed Mitsubishi Heavy Industries' appeals against seizure orders for two other victims, stating, "Mitsubishi Heavy Industries claims that there are obstacles to compulsory execution such as the arbitration procedure under the Korea-Japan Claims Agreement not being conducted, but according to the Supreme Court ruling, such circumstances cannot be considered obstacles."

Mitsubishi Heavy Industries filed a further appeal against the decisions of Civil Appeals Divisions 1 and 2. The Supreme Court is currently reviewing the legal issues in the case.

Meanwhile, another seizure order appeal case regarding patent rights of a deceased victim, pending before Civil Appeals Division 4 of Daejeon District Court (Chief Judge Yoon Hyun-jung), has not yet been decided even after more than six months since its filing in January.