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As for a dispute case of a semiconductor layout design right, you can apply for mediation to the dispute mediation committee.(News Letter No. 524) |
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KH |
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2024-03-18 |
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1. As for a dispute case of a semiconductor layout design right, you can apply for mediation to the dispute mediation committee.
- ‘Invention Promotion Act’ and ‘Semiconductor Layout Design Act’, covering the content that the industrial property dispute mediation committee is in charge of dispute mediation and deliberation of a semiconductor layout design right, were promulgated on January 30, 2024.
- A semiconductor layout design expert is appointed as a dispute mediator, expecting to rapidly settle a dispute.
The functions and roles of the ‘industrial property dispute mediation committee’ under KIPO, which is a representative dispute mediation organization relating to industrial property, will be expanded. According to KIPO, a ‘legislative bill of partial revision of the 9 laws including a law of semiconductor integrated circuit layout design to organize an administrative agency committee’ was promulgated on January 30, 2024, such that the industrial property dispute mediation committee mediates a dispute on a semiconductor layout design right (design to two-dimensionally or three-dimensionally arrange various circuit elements and connecting wires to fabricate a semiconductor integrated circuit). The time for its enforcement is 6 months after its promulgation.
The industrial property dispute mediation committee under KIPO is a representative industrial property dispute mediation institution which has settled the most dispute mediation cases regarding industrial property. In 2023, 159 dispute cases, which increased by 2 times compared to 2022 were submitted. Case processing was completed in 66 days on average. When both parties have responded to the mediation, more than half of the mediations were made (mediation success rate: 53%), so that the industrial property dispute mediation committee has been established as a rapid and efficient dispute mediation institution.
This revision is to rapidly and efficiently settle a dispute by enabling the industrial property dispute mediation committee under KIPO to mediate a dispute case of a ‘semiconductor layout design right’.
The work which the industrial property dispute mediation committee takes responsibility (currently) covers an industrial property right, an employee’s invention, a trade secret, an unfair competition act and (after the revised act is enforced) will add a semiconductor layout design right.
The industrial property dispute mediation committee consists of a total of 80 technical and legal experts with technical and legal expertise, including 28 in the patent field, 19 in the trademark and design field, and 27 in the legal field such as trade secret and unfair competition act, etc.
As the industrial property dispute mediation committee’s functions and roles are expanded by this revision, semiconductor layout design experts will be additionally appointed as dispute mediators, up to 5.
2. A revision bill of the Unfair Competition Prevention Act including high-intensity technology leak prevention measures was passed by the plenary session of the National Assembly.
- Regulations to be introduced are related to: ▲five-fold punitive damages, ▲fines for companies to be strengthened three-fold, ▲corrective order and fine system regarding stealing ideas, etc., and ▲confiscation of infringing products and manufacturing facilities
The high-intensity measures to prevent technology hijack are introduced in the unfair competition prevention act. According to KIPO, a revision of ‘the act relating to unfair competition prevention and trade secret protection (hereinafter, referred to as the ‘unfair competition prevention act’) was passed by the plenary session of the National Assembly on January 25, 2024. The revision of the unfair competition prevention act includes various measures to better deter technology hijacking by increasing punitive damages up to 5 times, tripling a fine for an act of leaking an organized trade secret of a company, and introducing a corrective order system against an unfair competition act, such as an act of stealing an idea, etc.
As competition for technological hegemony between countries has intensified, cases that overseas competitors have leaked trade secrets of Korean companies’ excellent technologies have continued to occur. At the same time, since the types of criminal activities have become various and the methods thereof have been advanced, it is necessary to urgently prepare countermeasures.
To improve these realities, the technology hijack prevention act (hereinafter, referred to as the ‘unfair competition prevention act’), which is legislation promoted in cooperation with the government and the ruling and opposition parties, includes a diversity of measures needed to eliminate threatening factors to our industrial competitiveness and to form a healthy technological innovation ecosystem.
Revised matters / Major content
1. Deterrence and punishment for criminal activity are strengthened.
Punitive damages are strengthened. ㆍThe limit on damages for trademark secret infringement and idea theft, which are representative technology hijack acts, is strengthened from 3 times to 5 times.
Fines for corporations are strengthened. ㆍA fine of a corporation fine on an unfair competition act or trade secret infringement is to be strengthened up to 3 times the fine of a person who violates the law (i.e., violator), to curb organized criminal activity by a corporation.
A regulation to confiscate trade secret infringing products and their manufacturing facilities, etc. is newly established. ㆍNot only unfair competition act or trade secret infringement products but also their manufacturing facilities are completely confiscated, to prevent a secondary damage by the distribution, etc. of the infringement products.
The statute of limitations for corporation is extended. ㆍTo improve the absurdity of punishing only the violator(s) and not the corporation due to the expiration of the statute of limitations, the statute of limitations for a corporation in trade secret infringement crime is extended to the same level as a violator (from 5 years to 10 years).
2. Administrative remedies on illegal activity are strengthened.
Upon an administrative investigation of an unfair competition act, a corrective order and a fine are charged. ㆍThe regulations are improved such that, after conducting an administrative investigation, KIPO is able to charge a corrective order and fines beyond a corrective action recommendation to an unfair competition violator.
Regulations on procedures of sending administrative investigation records to a court are organized. ㆍThe relevant regulations are organized such that the administrative investigation records including trade secret are also submitted to a court, so that, in a compensation lawsuit of a unfair competition act, etc., a victim is able to directly use the records of administrative investigation conducted by KIPO.
Regulations on viewing and copying administrative investigation records are newly established. ㆍRegulations are newly established such that the parties are able to request the Commissioner of KIPO to view or copy the administrative investigation records (expect for trade secret and the other non-public data) when they need to be used.
3. Legal gaps of protection are eliminated.
Regulations on trade secret damage, destruction and alteration acts. ㆍRegulations are to punish the trade secret damage, destruction and alteration acts by hacking, etc., which could not be punished by the current unfair competition prevention act (imprisonment for up to 10 years or a fine of not more than 500 million Korea Won).
The protection range of a significant amount of accumulated data is expanded. ㆍThe data protection range is expanded to protect all of a significant amount of accumulated data, regardless of confidentiality.
* (Protected object): A significant amount of accumulated data for transaction with a specific person.
The new act has the major points as follows: ①Deterrence and punishment for criminal activity are strengthened, ② Administrative remedies on illegal activity are strengthened, and ③ Legal gaps of protection are eliminated.
3. Issuance of English design registration certificate becomes easier.
- The procedures to request an issuance of an English design registration certificate has been simplified from February 1, 2024.
KIPO announced to enforce the Enforcement Rules of the Korean Design Protection Act to simplify the procedures regarding the issuance of an English design registration certificate to alleviate the inconvenience of applicants, from February 1, 2024.
【 Reference 】 Article 68 ③ of Enforcement Rules of Design Protection Act
Article 68 ③ Anyone to request a English design registration certificate shall submit to the Commissioner of the Korean Intellectual Property Office a document to prove that the matters to be described in a design registration certificate are accurate (except for the case of requesting an English registration certificate with a name(s) in the list of goods notified by the Commissioner of the KIPO).
(Before the revision) When requesting an English design registration certificate, a notarized certificate or a translation confirmation certificate by an administrative agent for a foreign language should be submitted since it was necessary to attach a document to prove that the matters to be described in the relevant design registration certificate were accurately translated.
(After the revision) When requesting an English design registration certificate by describing the English name(s) of the 「list of goods by class of goods」, attached documents can be omitted.
The revised ‘2024 list of goods by class of goods’ notifies not only Korean names but also English names. This list of goods includes 10,678 Korean and English names. Among them, 5,344 names use the names of Locarno Classification and the other domestic proper names were translated.
4. KIPO expands IP administrative services to United Arab Emirates (UAE).
- 5 patent examiners were sent to UAE and an UAE examiner train program is to be conducted in the future.
- Cooperation target is to expanded to Qatar, Bahrain, etc., contributing to the realization of the second Middle East export boom.
According to KIPO, 5 KIPO examiners were dispatched to the Ministry of Economy of UAE (January 31, 2024) and they started the patent examination work of patent applications filed in UAE.
<14 examiners of KIPO were dispatched to UAE since 2010 memorandum of understanding (MOU) for comprehensive cooperation was signed>
South Korea has established, in IP fields, a close cooperative relationship with Middle East countries including UAE, Saudi Arabia, etc. and promoted cooperative projects. Since KIPO and UAE concluded the comprehensive cooperative MOU in the IP field in 2010 and the MOUN regarding their cooperation in the patent examination field in 2014, a total of 14 KIPO examiners were dispatched to UAE to conduct patent examination work of patent applications filed in UAE. Notably, the cooperative program was also successfully completed to build the patent information system of South Korea and UAE in 2018.
<5 patent examiners were dispatched for the 4th time to UAE… the cooperation with Qatar and Bahrain proceeds>
At this time,5 patent examiners in the various fields of mechanical engineering, organic polymers, chemical engineering, and information and communication, etc. were dispatched to strengthen the examination cooperation between South Korea and UAE, based on the MOU signed by the two countries for deeper cooperation in the IP field in January 2023. In addition, KIPO agreed to conduct an education and training course of examiners to be newly hired in this year by the Ministry of Economy of UAE and it will conclude an MOU thereof in the first half of this year, to implement the relevant business in earnest.
Separately from this, KIPO has positively proceeded with cooperation with the other Middel East countries including Qatar and Bahrain, etc. KIPO is proceeding an discussion to carry forward a cooperative project relating to establishment of national IP strategies with Qatar. KIPO also has a plan to conclude a MOU for cooperation with Bahrain in the patent examination, etc.
5. KIPO intensively cracks down on a counterfeit distributor ahead of Major League Baseball (MLB) held in Seoul.
- 7 suspects of violation of the Trademark Act were booked and about 44,000 counterfeit products were confiscated.
- Counterfeit products are blocked in advance, ahead of an ‘MLB 2024 season opening game’ in which KIM Ha-seong and Otani will participate.
KIPO’s trademark special judicial police (hereinafter, referred to as the ‘trademark police’) cracked down clothing specialty wholesale stores (7 locations) located in the Dongdaemun and Namdaemun areas in Seoul (February 6 and 7, 2024) and arrested 7 wholesalers including “K” who sold the MLB-related counterfeit products, without detention, on charges of violating the Trademark Act.
While people’s interest in the ‘MLB 2024 season opening game’ (San Diego Padres vs Los Angeles Dodgers on March 20 and 21, 2024) to be held in Seoul Gocheok Sky Dome, in which the famous players including KIM Ha-seong and Shohei Otani will participate, is increasing both at home and abroad, this crackdown was conducted through preemptive intelligence activities from the beginning of this year since the number of the MLB-related counterfeits has increased in the market.
According to the trademark police, the wholesalers including “K” (male, age: 61) were suspected of nationwide distributing counterfeit products of the MLB-related sportswear and socks, etc., based in Dondaemun Market (2 locations) and Namdaemun Market (5 locations).
Through this crackdown, the trademark police confiscated a total of 44,341 counterfeit products to which 6 famous club trademarks (such as LA dodgers, New York Yankees, etc.) were attached, corresponding to the genuine price of 150 million Korea Won,
Especially, since 5 Dongdaemun stores were all located nearby and arranged in a way that, upon cracking down on the first store, it was easy for the other stores to hide the counterfeit products or to transfer them away in advance, there was difficulty in crackdown. However, the trademark police could crack down on all of the relevant stores by simultaneously executing a seizure warrant at night.
When previously cracking down stores, most cases were to crack down on only a small number of counterfeit products on display. However, in this crackdown, a seizure warrant was issued after identifying a large-scale distributor of counterfeit products, and a number of the counterfeit products stored in the warehouse in addition to those on display were confiscated, to prevent the distribution of the counterfeit products,
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