Venture Industry "Welcomes Measures to Eradicate Technology Theft from SMEs"

"An Institutional Framework to Protect Innovation"

The venture business community on September 10 expressed strong support for the government's announcement of measures to eradicate technology theft from small and medium-sized enterprises.

The Korea Venture Business Association stated in a commentary that "these measures are highly significant in that they correct long-standing unfair practices that our venture companies have been raising concerns about, and establish an institutional framework to ensure that the technologies-fruits of innovation-developed by venture companies are properly protected."

The association explained, "For venture companies, technological competitiveness is directly linked to survival, but victimized companies have found it difficult to secure the necessary evidence to prove their cases, so they have not been able to receive adequate protection of their rights. As a result, a structure has developed in which the infringers are actually at an advantage, perpetuating a vicious cycle that undermines the willingness of venture companies to innovate."

The association continued, "The Korean-style discovery system and the new authority to order document submission, which the government is working to introduce, represent significant institutional progress in resolving the most serious challenge faced by victims in technology theft cases: the difficulty of proof. Through these measures, we expect a more balanced litigation environment that will prevent victimized companies from being disadvantaged in court."

Regarding the measure that recognizes the costs invested in technology development as damages and requires a professional institution to provide the basis for calculation, the association said, "This is a step that offers victimized companies a real opportunity for recovery. At the same time, it sends a clear message to the market that 'those who steal technology will fail' and serves as a turning point in laying the foundation for an innovation ecosystem where fair rewards are ensured."

The association added, "We hope these measures will enable the legitimate rights of venture companies to be protected and open the door to an environment where companies dedicated to sincere research and development can compete fairly."