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Legal Intellectual

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Q

What punishment does one receive for committing a violation of the Trademark Act?

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My company has been the subject of a criminal complaint for violation of the Trademark Act on the ground that the name of a product we newly released is similar to a competitor's product. We had no such intention at all, so we feel this is deeply unfair. We truly spent a long time developing and releasing it, and I am worried that, because of this, we may not even be able to sell it. If a violation of the Trademark Act is recognized, what criminal liability would we bear?

Violation of the Trademark Act

Trademark infringement

A

Answer to Related Inquiry

Under the Trademark Act, only the trademark holder has the exclusive right to use the registered trademark, so if a person other than the trademark holder registers and sells a similar trademark without legitimate authority, it constitutes trademark infringement.

Of course, if you used a completely identical trademark and exploited it for profit, it clearly constitutes a violation of the Trademark Act, so you may face criminal liability and civil damages.

However, if it is not a completely identical trademark, whether it is unlawful may vary depending on the court's judgment, so it is necessary to prepare carefully and respond to this.

If a violation of the Trademark Act is recognized, under the Trademark Act you are subject to imprisonment with labor for up to 7 years or a fine of up to 100 million won.

In addition, besides the actor who infringed another person's trademark right, a corporation is also subject to a fine of up to 300 million won, and an individual to a fine of up to 100 million won.

However, if the corporation or individual did not neglect considerable care and supervision to prevent the violation, a fine is not imposed.

If you become involved in a violation of the Trademark Act, it is advisable to obtain assistance from an attorney in order to accurately assess and respond to the situation.

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