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Violation of the Unfair Competition Prevention and Trade Secret Protection Act
Violation of the Unfair Competition Prevention and Trade Secret Protection ActWinning the case (favorable judgment)

Unfair Competition Prevention and Trade Secret Protection Act Defense | Legal Advisory to a Client Seeking to File a Criminal Complaint Under the Unfair Competition Prevention and Trade Secret Protection Act

The Unfair Competition Prevention and Trade Secret Protection Act is a law intended to prevent acts that harm the interests of those engaged in the same type of business by unfair means. Daeryun provided legal advisory to a client seeking to file a criminal complaint on this charge.

1. The Client Who Visited Daeryun Regarding the Unfair Competition Prevention and Trade Secret Protection Act

The client, who sought to file a criminal complaint against a certain company for violating the Unfair Competition Prevention and Trade Secret Protection Act, visited Daeryun, expressed his frustration, and confided as follows.

The Circumstances of the Case Involving an Alleged Violation of the Unfair Competition Prevention and Trade Secret Protection Act

Unfair Competition Prevention and Trade Secret Protection Act
Click the image above to view information about the Unfair Competition Prevention and Trade Secret Protection Act.

The circumstances that led the client to decide to file a criminal complaint for violating the Unfair Competition Prevention and Trade Secret Protection Act are as follows.

The client is the representative of Company N, which manufactures and sells agricultural machinery, general machinery, and agricultural machinery parts.

One day, when the client searched for his company on the internet, a different website, that of a company called T Agricultural Machinery, appeared instead of the client's company site, and that website advertised as though it were supplied with agricultural machinery parts by the client's company and sold them.

However, the client had never supplied parts to Company T, nor had he requested it to sell anything, and so he was simply taken aback.

Accordingly, because Company T sold its advertising by making promotions that falsely represented the goods of the client's company or that misled as to the quality and content of the goods, it violated the Unfair Competition Prevention and Trade Secret Protection Act, and the client therefore decided to file a criminal complaint.

However, having no knowledge of the relevant law, the client requested legal advisory from Daeryun.

Statutes Relevant to the Unfair Competition Prevention and Trade Secret Protection Act

🔗The Unfair Competition Prevention and Trade Secret Protection Act is a statute enacted to prevent acts of unfair competition that harm the interests of persons engaged in the same type of business by unfair means.

▣ Unfair Competition Prevention and Trade Secret Protection Act

Article 2 (Definitions)

1. “Act of unfair competition” means any of the acts falling under the following items.

(a) An act of using a mark identical or similar to another person's name, trade name, trademark, container or packaging of goods, or any other mark indicating the goods of another person that is widely recognized within Korea, or of selling, distributing, importing, or exporting goods bearing such a mark, thereby causing confusion with the goods of another person.

(f) An act of falsely representing the goods of another person, or of making a promotion or mark that misleads as to the quality, content, manufacturing method, use, or quantity of the goods or in their advertising, or of selling, distributing, importing, or exporting goods by such a method or mark.

(k) An act of infringing on another person's economic interests by using without authorization, for one's own business, a mark capable of identifying that other person, such as the name, likeness, voice, or signature of another person that is widely recognized within Korea and possesses economic value, by a method contrary to fair commercial practices or competitive order.

(n) In addition, an act of infringing on another person's economic interests by using without authorization, for one's own business, results created through another person's substantial investment or effort, by a method contrary to fair commercial practices or competitive order.

Article 18 (Penal Provisions)

A person who commits an act of unfair competition as described above shall be punished by imprisonment for not more than 3 years or a fine not exceeding 30 million won.

2. Daeryun's Assistance in Filing a Criminal Complaint Under the Unfair Competition Prevention and Trade Secret Protection Act

For the client, who sought to file a criminal complaint against Company T, which promoted the client's goods without authorization, by applying the charge under the Unfair Competition Prevention and Trade Secret Protection Act, Daeryun provided legal advisory as follows.

Argument Concerning the Violation of the Unfair Competition Prevention and Trade Secret Protection Act

Over 22 years, the client's company has manufactured and sold agricultural machinery products and parts and has established itself as a brand widely known to customers in various regions across Korea who use agricultural machinery.

However, although it had never concluded a supply contract with the client or been requested by him to sell anything, it advertised as though it were supplied with parts by the client's company and sold them, while selling products that were entirely unrelated to the client's parts.

We advised the client to emphasize the fact that this was a method contrary to fair commercial practices or competitive order and that, by using it without authorization for its own business, the client's economic interests were infringed.

3. Result of the Legal Advisory on the Unfair Competition Prevention and Trade Secret Protection Act: "Winning the Case"

As a result of Daeryun providing legal advisory to the client, who sought to file a criminal complaint against the opposing company on a charge under the Unfair Competition Prevention and Trade Secret Protection Act, it was possible to obtain the result of winning the case (favorable judgment) by having a substantial fine imposed.

If Your Company Has Suffered Harm Under the Unfair Competition Prevention and Trade Secret Protection Act

Where an act of unfair competition under the Unfair Competition Prevention and Trade Secret Protection Act has been committed, one may, by reporting to the Commissioner of the Korean Intellectual Property Office, have a corrective recommendation issued, may file a claim for damages, or may file a criminal complaint, as the client above did.

What is important in this process is to clearly establish facts such as that one's rights and interests were infringed by the act of unfair competition and that harm arose to one's economic interests.

Accordingly, we recommend obtaining the assistance of a legal expert.

Daeryun LLC, on the basis of data from numerous work cases relating to violations of the Unfair Competition Prevention and Trade Secret Protection Act, provides solutions and assistance suited to each client's situation. If you require help, please feel free to submit a 🔗legal consultation to Daeryun.

부정경쟁방지법 방어 | 부정경쟁방지법 혐의로 형사고소 하려는 의뢰인에게 법률자문

This content is based on actual cases handled by Daeryun Law LLC and has been partially adapted. All copyrights belong to Daeryun Law LLC.
Unauthorized reproduction, copying or distribution may result in legal action under applicable laws.

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