Fined 10 Million Won for Violating Trademark Act and Breach of Trust
The former CEO of an agricultural company, known for introducing 'Potato Bread,' a signature food of Chuncheon in Gangwon Province, has been fined for trademark infringement.
According to Yonhap News Agency, on November 25, Judge Park Donguk of the Chuncheon District Court’s Criminal Division 3 sentenced Mr. A (34), who was indicted on charges of violating the Trademark Act and breach of trust in the course of work, to a fine of 10 million won.
According to the indictment, between July and August 2023, Mr. A, as the head of an agricultural cooperative, posted a message on an online distribution center on Naver Cafe seeking sellers to participate in a group purchase of Potato Bread. He did so without obtaining consent from either Mr. B, who shared representative authority and was the co-CEO of the company, or from the company itself.
Subsequently, when sending Potato Bread packages to retailers who contacted him, he used the same trademark as the registered trademark number for Potato Bread on ice boxes and ice packs, thereby infringing the trademark rights.
Mr. A is also accused of, in his capacity as an internal director, causing financial damage to the company by arbitrarily drafting a transfer certificate to change the applicant for the 'method of making soybean bread' patent-registered under the company as the applicant-without going through proper internal decision-making procedures. He registered himself as a joint patent applicant, resulting in losses equivalent to the value of the company’s share in the patent rights.
The court stated, "The defendant used the trademark without consent and changed the name of the patent applicant without going through legitimate internal decision-making procedures, despite being an internal director, which makes the nature of the crime serious. The trademark infringement caused considerable confusion among consumers, who inquired about the relationship between the agricultural company, which shares the Potato Bread trademark, and the agricultural cooperative operated by the defendant."
However, the court imposed a fine, taking into account that the defendant admitted to the crime and showed remorse, reached a settlement with the victims who expressed no intention of punishment, and that this was his first offense.
Potato Bread was developed and launched in 2020 at a cafe in Chuncheon run by a young couple. The bread features a rice flour dough filled with mashed boiled potatoes, and its surface is coated with soybeans and black sesame seeds to resemble a freshly harvested potato.
As Potato Bread gained popularity through social media, the couple established an agricultural corporation and introduced the product to franchise cafes and department store pop-up stores. In July 2023, they filed for divorce, and their marriage officially ended following the court’s reconciliation recommendation in July of this year.
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