If You Want to Prevent a Trade Secret Infringement Damages Claim, You Must Read This!

If you are reading this article, you may be someone who has been served with a massive trade secret infringement damages claim.

A trade secret refers to the core technology or production know-how that determines the value of a company, and as material that has a significant impact on the company's survival, it is typically managed as confidential information internally. Despite such rules, if this information is leaked externally in violation of them, liability for damages incurred by the company follows.

Therefore, if you have been served with a trade secret infringement damages claim, you should promptly seek the help of a specialized attorney so that the case can be concluded with minimal legal liability.

You must also verify whether the alleged violation actually occurred as claimed and whether the claimed damage is substantiated, and prepare for the legal dispute accordingly.

With that in mind, today we would like to share effective strategies based on LAWFIRM LEAP's expertise and track record of winning cases for those facing potential punishment in connection with this issue.

We will particularly explain the standards for legal liability, the level of punishment, and ways to reduce the amount of damages that you may be curious about, so please take just 3 minutes to focus on the following.

01If a trade secret infringement is established?

If confidential company information is leaked intentionally or negligently, and the company suffers serious damage as a result, criminal punishment as well as civil liability for damages may follow. This matter is set forth in the Unfair Competition Prevention and Trade Secret Protection Act.

02Unfair Competition Prevention and Trade Secret Protection Act

(Liability for Damages for Trade Secret Infringement) A person who infringes on the business interests of a trade secret holder through intentional or negligent trade secret infringement, thereby causing damage, is liable to compensate for such damage.

Therefore, if this charge is established, one may face imprisonment of up to 10 years or a fine of up to KRW 1.5 billion, and if criminal liability is established, a massive claim for damages may follow accordingly.

Since it is impossible to predict the amount of damages owed depending on the value of the company's loss, and this can be as serious a problem as the criminal punishment itself, if you have received a complaint regarding this matter, you should promptly begin a legal review.

For this charge to be established, several requirements must be met. First, it must be examined whether internal data was actually leaked, and if so, whether that data qualifies as confidential information.

To qualify as confidential information, the information must have economic value, and due to this fact, it must be managed only by key personnel and teams, rather than being publicly known.

If the act of removing the data is established but the data turns out not to be confidential, this offense will not be established. Furthermore, whether the damage claimed by the other party due to the confidential data leak actually occurred is also important.

Therefore, you must review the other party's claims based on legal grounds and determine how to respond to the contents of the complaint.

Since one may occasionally be charged with this offense and face a damages claim simply for having worked in a core department handling confidential information or for holding a senior position, if you are truly innocent, you should confirm this through legal review and find a way to explain your position.

03Trade secret infringement damages claims: How can the damages amount be reduced?

If you are implicated in a trade secret infringement matter and the charge is established, you must examine the appropriate level of compensation and pursue legal strategies to reduce the amount claimed in the civil suit as well.

If it can be proven that the confidential information has low economic value, that the other company's loss from the leak was not significant, and that you gained little to no benefit from it, the amount you would need to pay is likely to be reduced.

You may also seek leniency by proving that the infringement was not intentional, that you were unaware of the legal requirements, or that you took the materials upon leaving for personal use only.

Since the appropriate strategy varies depending on the circumstances, and if reaching a settlement with the other party before the trial outcome is a better way to resolve the matter, you will need to coordinate this and see it through to a final, legally effective settlement agreement, which requires the assistance of a specialized attorney.

If, in this matter, you are undergoing criminal proceedings while also facing a civil suit, you should quickly acknowledge your wrongdoing and show genuine remorse while preparing a sentencing strategy to first lower the level of criminal punishment.

If the level of punishment, which serves as the basis for legal liability, is reduced, the amount of compensation can also be reduced.

However, if you are currently facing criminal proceedings, rather than resolving two separate legal disputes including the civil suit, it is advisable to reach a settlement during the criminal process to defend against a harsher sentence.

Since this type of case is often pursued not so much for the purpose of criminal punishment but rather to seek monetary compensation for the damage, when reaching a settlement for the purpose of defending against a sentence, settling in a way that prevents additional civil disputes from arising may be the best approach.

However, not every attorney is skilled at everything from determining an appropriate settlement amount to negotiating and reaching an agreement, and obtaining a statement of non-punishment that is favorable for criminal sentencing.

In particular, obtaining a settlement agreement that includes a commitment not to raise further legal disputes is a matter that requires skill in negotiating with the other party, so it is wise to work out a strategy together with an expert who has handled numerous such cases.

Based on our attorneys' experience handling various legal disputes at Kim & Chang and Bae, Kim & Lee, the largest law firms in Korea, LAWFIRM LEAP's attorneys are capable of providing comprehensive responses to both civil and criminal disputes.

Having handled countless cases and met just as many clients, we fully understand how desperate you, the reader, must feel right now.

That is why, to fully mobilize LEAP's expertise and know-how, attorneys with backgrounds at major law firms and the police personally accompany clients through every stage, from consultation to trial.

If you have not found a solution through what we've shared today, please feel free to contact us at LEAP at any time.

Attorneys with backgrounds at major law firms and the police will personally provide consultations, and we will help you find the optimal solution tailored to your situation.

Thank you for reading this long article today. This has been LAWFIRM LEAP.

Thank you for reading this long article.