"Galaxy Ring Could Be Stolen" Samsung Lawyer's Patent Advice [Invest&Law]

Samsung Unveils 'Galaxy Ring' at MWC
Apple, Honor Also Challenge Development
Design Technology Infringement Controversy Inevitable
Evidence Presentation Crucial in US Disputes
Concealment Leads to Harsher Penalties
Need for Strong Compliance Management System
South Korea Also Requires Industry Protection Investigations and Penalties

Samsung Electronics amazed the world by unveiling the 'Galaxy Ring,' a smart ring (a ring-shaped wearable device), at the 'GSMA Mobile World Congress (MWC)' held in Barcelona, Spain, from the 26th to the 29th of last month (Korean time).

They introduced a ring-shaped model for the first time to a global market accustomed only to wristwatch forms. Officials evaluated it as "another innovation created." The Galaxy Ring is also called a masterpiece that embodies Samsung Electronics' unique so-called 'manufacturing' technology, which enables the production of electronic devices like smartphones in flexible or foldable forms.

Galaxy Ring

Lee Jong-cheol, a lawyer at Yulchon LLC who worked as a 'Samsung man' for 9 years, said in a phone interview with Asia Economy on the 6th, "(Samsung Electronics) has shown strength in manufacturing technology for a long time," adding, "There are also a considerable number of patented technologies certified in this regard. It ranks among the top five in the world." In fact, according to IFI Claims, a U.S. patent analysis firm, Samsung Electronics received patent approvals for 6,165 technologies in the U.S. last year, ranking first for two consecutive years among 250 global companies.

After resigning as a prosecutor in 2014, this lawyer worked at Samsung Electronics from 2015 to 2023 as head of the North America Legal Support Team (with executive director status) and as a vice president. Having spent most of his time at the U.S. subsidiary, he participated in various local business and legal affairs. During this period, he also obtained a New York State Bar license.

He left Samsung Electronics in November last year and joined Yulchon LLC on the 22nd of last month. He advised his former workplace, "(When securing new technology) we must strive to prevent competitors from infringing on our technology while simultaneously ensuring that we do not infringe on other companies' technologies."

Lee Jong-cheol, Attorney at Law, Yulchon LLC. Photo by Yulchon

Recently, as U.S. company Apple and China's Honor have begun developing smart rings, there is a possibility that legal disputes may arise over design and technology similarities. The lawyer advised, "When disputes occur in the U.S., attention must be paid to the discovery system." Discovery is a system where both parties disclose evidence and documents before the trial begins to clarify the issues. It is mainly implemented in common law countries such as the U.S. and the U.K., and is very strict.

In particular, U.S. courts do not tolerate hiding some evidence during the discovery process. In 2007, Microsoft was fined and ordered to pay $27 million (approximately 35.9 billion KRW) in fines and attorney fees to IT service company Z4 Technology after it was found to have withheld files requested by Z4 Technology during a patent infringement lawsuit, claiming it "did not have" the files. The lawyer analyzed, "Companies expanding overseas, including to the U.S., will increasingly need to establish compliance systems related to trade secrets and other matters to prepare for litigation risks."

The lawyer explained, "In the U.S., when technology leakage crimes occur, agencies like the Federal Bureau of Investigation (FBI) actively conduct thorough investigations, and severe punishments of at least 10 years imprisonment are imposed." He emphasized, "The more innovative a country is, the stronger the efforts to protect technology become. We also need corresponding investigations and punishments to protect industries such as semiconductors."