Trade Secret Infringement Litigation: How to Win <Must Read>

Some of you reading this article may be facing a Police Investigation after being accused of 'trade secret infringement.'

Under the Unfair Competition Prevention and Trade Secret Protection Act, trade secrets are treated as critical matters that determine a company's competitiveness.

In particular, if such information is leaked or disclosed, it can cause significant economic loss to a company, which is why legal safeguards are in place to protect it.

Therefore, if a violation of this law is found, you may face not only criminal punishment but also claims for compensation for the company's financial damages, so you must quickly find a way to resolve the matter.

With that in mind, today we will explain how to respond and minimize legal liability if you are facing a trade secret infringement lawsuit.

As attorneys with backgrounds at major law firms and the police, the legal representatives of LAWFIRM LEAP, who have extensive experience handling cases in the field of intellectual property, will share effective solutions, so please take about 3 minutes to read carefully.

01If You Have Been Sued for Trade Secret Infringement

Trade secret infringement recognized under the Unfair Competition Prevention Act refers to acts committed intentionally or negligently, meaning obtaining confidential information through improper means such as coercion, deception, or theft, or disclosing information obtained in such a manner.

Unfair Competition Prevention and Trade Secret Protection Act, Article 11 (Liability for Damages Caused by Trade Secret Infringement) A person who intentionally or negligently infringes upon a trade secret infringement, thereby harming the business interests of the trade secret holder, is liable to compensate for the resulting damages.

Legal liability is recognized where a person, despite having a duty to maintain confidentiality under the company's personnel regulations regarding such confidential information, disclosed the information or obtained unlawful gains, thereby causing damage.

For this legal liability, a person may be sentenced to up to 10 years imprisonment or a fine of up to 500 million won, and if a fine is imposed, where 10 times the amount unlawfully obtained exceeds 500 million won, a fine of between 2 and 10 times the amount of profit gained may be imposed, meaning substantial financial loss may follow.

Therefore, if you have been sued in connection with this matter, you must quickly gather materials to demonstrate that the violation was not intentional or negligent.

To do this, you must analyze the contents of the complaint and devise a response strategy.

You should seek assistance from an expert with extensive litigation experience in the field of intellectual property and know-how in responding to lawsuits under the relevant statutes.

02How to Reduce Damages in a Trade Secret Infringement Lawsuit

For an offense to be established in this matter, you must first determine whether the information had economic value as a trade secret and whether the company managed the confidential information thoroughly and internally.

If the information was taken out and does not qualify as confidential in nature, you may be able to obtain a finding of no suspicion.

However, if the information satisfies the requirements for a trade secret and is significant enough to be disputed with a competitor, it is a strategic approach to acknowledge the allegation and appeal for leniency.

In this case, you must quickly find objective evidence proving that the information was taken out accidentally, that you did not disclose it to a competitor, and that any profit gained from the trade secret infringement was minimal.

Above all, reaching a settlement with the other party is necessary to meet the requirements for leniency and defend against a harsher sentence, and only when the sentence is reduced can you respond effectively to a civil claim for damages by reducing the amount, if such a claim is filed.

In particular, since this type of case is often litigated with the primary aim of seeking damages rather than criminal punishment, if the allegation is likely to be recognized, resolving the matter through prompt settlement is also a viable approach.

However, when calculating the settlement amount, you should follow the advice of an expert who has handled numerous settlement procedures in this type of case, in order to lower the amount to an appropriate level and complete the settlement.

Since coordinating a settlement between companies is difficult, requires obtaining a statement of the victim's intent not to seek punishment, and requires including favorable terms in the settlement agreement such as a promise not to file a civil claim for damages after a criminal settlement, you should seek the assistance of a specialized attorney in responding to this matter.

The attorneys at LAWFIRM LEAP have handled a wide range of legal disputes while working at Kim & Chang and Bae, Kim & Lee, two of Korea's largest law firms.

With extensive experience in the investigation process as former police officers, we can provide the proper initial response to the police investigation, which is critical in this matter, better than anyone else, and we can advise you on how to establish a strategy from the police investigation stage through the trial, respond without error, and reduce the amount of damages.

If you wish to state your position with the help of attorneys who have experience at major law firms and in the police, and to comprehensively resolve both criminal and civil matters, please contact LEAP promptly for assistance.

At LEAP, we understand the situation and urgency you face better than anyone, and we will mobilize all our knowledge and expertise to help achieve the best possible outcome.

If you have not found a solution through what we have shared today, please prepare thoroughly for litigation together with LEAP.

With a tailored strategy suited to your situation and a prompt initial response, you can find a way to avoid legal liability.

Thank you for reading this lengthy article.