Investigation Procedures for Violations of the Unfair Competition Prevention and Trade Secret Protection Act by the Korean Intellectual Property Office

This article provides a detailed explanation of the investigation procedures for violations of the Unfair Competition Prevention and Trade Secret Protection Act by the Korean Intellectual Property Office (KIPO). These procedures are based on Korea's legal system and KIPO's special judicial police system.

I. General Investigation Procedures

KIPO's investigation procedures typically proceed as follows:

1. Receiving infringement reports: Reports are received through complaints or accusations.

2. Assigning specialized investigators and initiating investigation: Specialized investigators are assigned based on the type of infringement.

3. Specifying the infringement facts: The infringement facts are specified based on the complainant's statements and submitted materials.

4. Collecting and reviewing evidence: Statements from the accused, submitted materials, and other evidence are collected and analyzed.

5. Conducting administrative investigations (if necessary): When deemed necessary, the Commissioner of KIPO may have relevant officials enter business premises to investigate related documents or items.

6. Determining infringement: The infringement is determined based on a comprehensive review of collected materials.

7. Recommending corrective measures (if necessary): The Commissioner of KIPO may recommend corrective measures such as cessation of the act or removal of markings within a period of 30 days for violations.

8. Preparing investigation reports and forwarding to the prosecution: An opinion report summarizing the investigation results is prepared and the case is forwarded to the prosecution.

II. KIPO's Investigative Authority

KIPO's special judicial police officers can exercise investigative authority over the following matters:

- Trade secret infringement
- Trademark infringement
- Patent infringement
- Design right infringement
- Unfair competition acts

This authority is granted to KIPO under Korea's special judicial police system.

III. Legal Sanctions

Violations of the Unfair Competition Prevention and Trade Secret Protection Act may result in the following sanctions:

1. Criminal penalties

  - For trade secret infringement:
    - When used domestically: Imprisonment up to 10 years or fines up to 500 million won
    - When used abroad: Imprisonment up to 15 years or fines up to 1.5 billion won
  - Fines can be increased to 2-10 times the amount of property gain from the violation.

2. Civil damages

  - Punitive damages: Up to 5 times the amount of actual damages

3. Administrative sanctions

  - Corrective orders and fines may be imposed

IV. Electronic Information Seizure, Search, and Verification Procedures

In Korea, the seizure, search, and verification of electronic information proceeds as follows:

1. Attempt to seize relevant electronic information at the scene
2. If not possible, copy all information and take it out
3. If even that is difficult, seal and take out the original storage medium

The right to participate is guaranteed throughout the process, and a detailed inventory is provided upon completion of the seizure. This procedure is established through Korea's Criminal Procedure Act and Supreme Court precedents.

In conclusion, this article has provided a detailed explanation of the investigation procedures for violations of the Unfair Competition Prevention and Trade Secret Protection Act by the Korean Intellectual Property Office. Korean companies should take utmost care in protecting trade secrets, and employees should also be vigilant in this regard.

For Further Assistance:

Siwoo Law Firm
Ryu Seungho, South Korean Attorney
Email: [ryu@siwoo-law.com](mailto:ryu@siwoo-law.com)