Patent Office, "Protecting Celebrities' Portraits, Names, and Economic Value by Law"

[Asia Economy (Daejeon) Reporter Jeong Il-woong] Legal grounds have been established to recognize and protect the portrait and name of celebrities as property with economic value.

On the 30th, the Korean Intellectual Property Office (KIPO) announced that the partial amendment to the "Act on the Prevention of Unfair Competition and Protection of Trade Secrets" (hereinafter referred to as the Unfair Competition Prevention Act) containing this content has passed the Cabinet meeting.

The amendment focuses on preventing acts of unfair use (monetary gain by exploiting identity) of celebrities' portraits and names, as well as the unfair acquisition and use of data, amid the rapidly growing influence of Hallyu such as Squid Game and BTS.

In a situation where advertisements featuring beverages imprinted with the portraits and signatures of idol singers or images reminiscent of famous actors appear daily, this amendment will enable the legal blocking of illegal products and services that unlawfully appropriate such content.

This is expected to play a role in preventing free-riding on the long-term efforts and costs invested by domestic entertainment industry workers by unauthorized use of celebrities' portraits and names.

Until now, even when illegal acts occurred in similar cases, only mental damages (compensation claims) could be protected, and it was difficult to protect portraits and names as property rights. Therefore, even if the portraits and names of famous athletes or movie actors were used without permission in advertisements, victims could only receive relatively small compensation compared to the actual damage incurred.

However, with the amendment to the Unfair Competition Prevention Act, the Korean Intellectual Property Office explained that if economic damage occurs due to unauthorized use of celebrities' portraits and names, appropriate protection for property damage is possible through the exercise of so-called "publicity rights."

In fact, the amendment allows for civil remedies such as injunctions and claims for damages, as well as administrative remedies including administrative investigations and corrective recommendations by KIPO, when economic damage is caused by unauthorized use of celebrities' portraits and names.

Major countries such as the United States have already protected publicity rights through related laws or precedents ahead of Korea.

Additionally, the amendment includes provisions regulating the unfair acquisition and use of data generated for transactional purposes as unfair competition acts. This is a legal measure to establish a foundation for safely trading data, which is emerging as an essential resource comparable to financial capital in the digital era.

When economic damage occurs due to unfair acquisition or use of data, victims can also file injunctions and claims for damages, and in such cases, KIPO can take remedial actions such as administrative investigations and corrective recommendations.

KIPO Commissioner Kim Yong-rae said, "With the amendment to the Unfair Competition Prevention Act, it has become possible to regulate unauthorized use of celebrities' portraits and names and unfair acquisition and use of data for transactional purposes," adding, "Through this, we expect to promote the development of the domestic entertainment and data industries and for Korean companies to grow and thrive as key players in the global market."

Meanwhile, the amendment is scheduled to be promulgated on the 7th of next month and will take effect six months after the date of promulgation. However, remedies for victims related to unfair acquisition and use of data will be implemented simultaneously with the "Framework Act on the Promotion and Use of the Data Industry" on April 20 of next year.