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National Intellectual Property Committee Launches Initiative to Improve System for Calculating Damages in Trade Secret Cases

System Improvement Initiated to Enhance Legal Remedies and Protection
for Companies Affected by Trade Secret Infringement and Technology Leakage

As the number of domestic and international cases involving trade secret infringement and technology leakage has recently increased, a joint research group for improving the system for calculating damages in such cases has been launched to respond effectively.


On July 14, the National Intellectual Property Committee announced that it held an inauguration ceremony for the "Joint Research Group for Improving the System for Calculating Damages in Trade Secret Infringement and Technology Leakage Cases" at the Suwon Convention Center in Suwon, Gyeonggi Province.

National Intellectual Property Committee Launches Initiative to Improve System for Calculating Damages in Trade Secret Cases

Recently, cases of trade secret infringement and technology leakage both domestically and internationally have continued to rise. In particular, cases involving overseas leakage surged from 10.1% in 2021 to 22% in 2024.


In response, the National Intellectual Property Committee launched the joint research group to effectively address the significant economic damage to the nation caused by the sharp increase in trade secret infringement and technology leakage cases, and to seek ways to improve the system for providing substantial legal remedies to affected companies.


Under the Unfair Competition Prevention Act and the Industrial Technology Protection Act, civil and criminal remedies are available in the event of damage, and a punitive damages system of up to five times the actual damages has already been introduced. However, due to the high level of confidentiality and technical complexity inherent in trade secret and technology leakage cases, it is difficult to objectively calculate the amount of damages, and there have been ongoing concerns that affected companies are not receiving adequate legal remedies.


Accordingly, the joint research group, which consists of six experts from the legal and academic fields recommended by relevant ministries, will conduct in-depth research on the following areas: establishing objective criteria for valuing damages in trade secret infringement and technology leakage cases; utilizing public value assessment institutions for sentencing decisions in criminal cases; and improving systems for evidence collection and confidentiality protection during criminal proceedings (investigation and trial stages).


The joint research group is composed of six members: Park Taeil (Chief Judge, Seongnam Branch of Suwon District Court), Kim Jonggeun (Presiding Judge, Suwon District Court), Lee Seungwoo (Prosecutor and Researcher, Scientific Investigation Division, Supreme Prosecutors' Office), Choi Seungjae (Professor of Law, Sejong University and Attorney), Lim Hyeongju (Attorney, Yulchon LLC), and Yoon Jiyeong (Korea Institute of Criminology and Justice Policy).


They will propose various measures to the National Intellectual Property Committee and form and operate a special expert committee consisting of about 20 experts to promote effective system improvements.


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