New initiative aims to prevent leaks, but past failures raise doubts about the effectiveness of tougher penalties
The Korean Intellectual Property Office (KIPO) introduced a series of new measures aimed at strengthening South Korea’s defenses against technology leaks on Thursday. The announcement includes leveraging patent big data analysis to detect potential leaks and collaborating with national counterintelligence agencies for immediate investigation. KIPO also outlined stricter legal frameworks, including increased penalties for trade secret violations, which could lead to damage compensation up to five times the actual loss, and criminal penalties such as imprisonment and fines.
Additionally, the new measures include an expanded legal framework to cover re-leaks — leaked confidential or proprietary information that is leaked again — through foreign subsidiaries and intentional job transfers designed to facilitate leaks. A new evidence collection system was also introduced, allowing court-appointed experts to gather evidence at the scene of potential leaks and supervise witness testimonies.
WHY IT MATTERS
While KIPO’s latest measures appear robust on paper, this is not the first time South Korea has introduced reforms to address technology leaks, and the results have been mixed. Previous initiatives, including the tougher penalties introduced in January, have done little to stem the tide of tech theft. Given the persistence of these issues, it’s unclear whether this latest push will succeed where earlier efforts have failed.
Moreover, KIPO’s use of the phrase “tech leak” is notable. By using the phrase, the South Korean government avoids using terms such as “theft” or “espionage,” reflecting Seoul’s reluctance to directly name China. Industrial espionage remains a growing threat to South Korea’s tech sector. High-profile cases like the attempt to replicate Samsung Electronics’ semiconductor factory in China in June 2023 highlights the scale of the problem.
While it remains to be seen whether KIPO’s latest measures will be effective in mitigating tech theft, they may increase regulatory burdens for businesses. Companies in high-risk industries like semiconductors and advanced manufacturing may need to allocate more resources to compliance, data security and internal monitoring with little assurance that these measures will effectively protect their intellectual property.
The Korean Intellectual Property Office (KIPO) introduced a series of new measures aimed at strengthening South Korea’s defenses against technology leaks on Thursday. The announcement includes leveraging patent big data analysis to detect potential leaks and collaborating with national counterintelligence agencies for immediate investigation. KIPO also outlined stricter legal frameworks, including increased penalties for trade secret violations, which could lead to damage compensation up to five times the actual loss, and criminal penalties such as imprisonment and fines.
Additionally, the new measures include an expanded legal framework to cover re-leaks — leaked confidential or proprietary information that is leaked again — through foreign subsidiaries and intentional job transfers designed to facilitate leaks. A new evidence collection system was also introduced, allowing court-appointed experts to gather evidence at the scene of potential leaks and supervise witness testimonies.
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