Lee & Ko Represents Interested Third Parties in GTT’s Abuse of its IP Rights

The Korea Fair Trade Commission (“the KFTC”) sanctioned GTT, a multinational corporation that monopolizes the LNG-containment technology, for unfair trade practice and abuse of market dominance.  GTT was found to have forced Korean shipbuilding companies to purchase technical assistance service together with the rights to use GTT’s patented technology (e.g., tying of products/services).  Lee & Ko represented three shipbuilding companies during the KFTC’s review process on this matter by submitting detailed facts of GTT’s abuse of its IP rights, analyzing the relevant competition laws on tying (both in and outside of Korea), and examining the complex technology and patent at issue.  At the KFTC hearing, Lee & Ko also presented the position of the three shipbuilding companies as well.

As a result, the KFTC acknowledged that GTT’s practice of tying is a violation of the law, reaffirming the illegal tying found in the Microsoft case in 2006.  The KFTC’s decision is expected to promote competition as new market players may enter the market (LNG-containment technical assistance services market) which had long been dominated by GTT.