Unfair Competition / Trade Secrets
Unfair Competition Prevention Act is a law that prevents unjustifiable competitive behaviors and ensures fair competition to improve the quality of the competition whereas Monopoly Regulation ensures the freedom of competition to facilitate competition.
Trade secrets represent (i) technical and managerial information useful for production methods, sales methods, and other operating activities (usability requirements), (ii) publicly not known (confidentiality requirements), (iii) having an independent economic value (economic value requirements), and (iv) kept secret by considerable effort (secret requirement).
ㆍ Confusing acts of merchandise subjectㆍsales subject
ㆍ Marking acts of false origin
ㆍ Causing acts of mistaken sourceㆍquality
ㆍ Dilution acts of prominent Trademarks
ㆍ Using acts without the consent of the trademark ownerㆍ Unfairly obtaining acts of domain name
ㆍ Imitating acts of merchandise form
ㆍ Unfairly obtainingㆍusingㆍdisclosing acts of trade secrets
ㆍ Obtainingㆍusingㆍdisclosing acts with awareness or malice of unfairly obtained trade secrets
ㆍ Usingㆍdisclosing acts with awareness or malice after just acquisition
ㆍ Unfairly obtainingㆍusing acts of trade secrets
-Civil Remedy
A person can immediately take civil and criminal remedies from unfair competition/trade secrets infringement, but it is advantageous to send a warning letter preferentially to settle the dispute quickly and improve the effectiveness of civil and criminal remedies from unfair competition/trade secrets infringement. A favorable contract of compromise which considers the expected judgment, litigation costs and litigation period is also a good solution of the dispute.
A plaintiff can claim prohibition and prevention from infringement by on going or potential infringers. In addition, the necessary measures, including disposal of objects and removal of equipments can be claimed. If a rapid prohibition of infringement is necessary, the plaintiff can also apply for provisional disposition. In case of occurring damage, the plaintiff can claim compensation for damages with credit repair. Prohibition of competitive business and provisional disposition banning job changes within the same field can be claimed in connection with trade secrets.
-Criminal Remedy
If a person be charged with a crime concerning unfair competition, he faces up to 5 years imprisonment or be fined not exceeding 50 million won. Less than 10 years imprisonment and from 2 to 10 times the fine of amount of profit are sentenced as a criminal punishment to the person who acquire/use trade secrets useful for the corporate or divulge it to any third party for the purpose of getting an illicit gain and causing damage to corporate. According to the Unfair Competition Prevention Law Article 2, paragraph 1, the person who acts unfair competition, face up to 3 years imprisonment or be fined not exceeding 30 million won.