Korean trade secret misappropriation disputes are no longer simply between a company and a former employee. In recent years, trade secret disputes are arising at an accelerating pace and larger scale between Korean companies and International businesses operating across multiple jurisdictions, including the United States, China, and Japan. These disputes centering around cutting-edge technologies are more global, present a broader risk profile, and have become more critical to businesses than ever before.

As a result, trade secret misappropriation cases require not only deep technical understanding of the relevant industry, but also require the comprehensive ability to respond to diverse forms of dispute resolution measures including criminal investigations, digital forensic analysis, and multi-jurisdiction international litigation.

Accordingly, in order to provide our clients with bespoke responses tailored to the characteristics of Korean trade secret misappropriation disputes, Lee & Ko offers one team comprised of:

(i)   IP lawyers, who can provide professional counsel based on abundant experience with a broad range of leading-edge technologies including electronics, chemistry, materials science, pharmaceuticals, biotechnology, machinery, communications, semiconductors, and computers;

(ii)   criminal lawyers, who are former prosecutors and police officers and familiar with the ins-and-outs of Korean criminal procedure and integrated criminal and civil strategies;

(iii)   trial lawyers, who have practical work experience with every level of Korean courts and especially familiar with preliminary injunctions, non-compete lawsuits, and follow-up actions and appeals;

(iv)   digital forensic experts, who can analyze whether trade secret misappropriation or spoliation of confidential information has taken place; and

(v)   international IP litigators, who know how to manage overseas legal procedures, such as discovery relating to international trade secret misappropriation, to create synergies and work with diverse teams to provide professional service that no other Korean law firms can replicate.

Lee & Ko’s Trade Secret/Confidential Information Protection Team has extensive experience in handling numerous civil and criminal cases across various fields of technology. In addition to our expertise in Korea, the Team has a broad range of client work experience across many technological disciplines and we have successfully handled a number of international trade secrets/confidential information cases in the United States, Japan, China, and Vietnam.

Expertise

Disputes and Litigations

Based on our team’s deep technological background and long history of successfully resolving numerous cases, the Trade Secret/Company Information Protection Team is capable of analyzing the key core issues of each dispute from multiple angles to develop strategies that are targeted to the needs and business goals of each client.

The Trade Secret/Company Information Protection Team handles various civil and criminal litigations relating to trade secret misappropriation (e.g., preliminary injunctions, infringement, and damages) and offers strategic dispute resolution measures (e.g., warning letters, strategic counseling, and negotiations) to resolve disputes with the best possible outcome. Our Team has also successfully managed several breach of confidentiality/non-compete covenant cases.

Digital Forensics

It is becoming increasingly more important in trade secret misappropriation cases to recover and analyze digital information remaining on various storage media or the Internet.

Our Trade Secret/Company Information Protection Team does not leave digital forensics to external agencies, but provides real-world expertise and practical services by employing its own in-house digital forensic team that is capable of performing services, such as "unstructured data analysis" that can analyze large amounts of data in a short time, as well as recover deleted data from PCs, tablets, and smartphones with our own state-of-art forensic analysis tools.

Administrative Investigations

In 2018, the “Idea Theft” clause was introduced to Korea’s Prevention of Unfair Competition and Trade Secret Protection Act to eradicate SME idea theft, which was one of the current government’s core policy commitments. The Trade Secret/Company Information Protection Team is well positioned to help clients take preemptive measures against administrative investigations initiated through the newly introduced “Idea Theft” clause.

National Core Technology Solutions

As competition for global technological power is fiercer than ever, securing core technologies and production capacity is expanding not only with regard to national economies, but also with regard to national security policies. As such, the United States and countries in Europe are strengthening their technology protection systems, including screening foreign investments and strengthening R&D security through the Committee on Foreign Investment in the United States (“CFIUS”). Accordingly, Korea has designated major technologies such as semiconductors, secondary batteries, and displays (OLEDs) as national core technologies (“NCTs”), which require prior government approval for overseas M&A transactions or technology transfers. Any violation of Korea’s NCT protection legislation and statutory regimes may be subject to serious criminal punishment and significant fines. Furthermore, the National Advanced Strategic Industry Act went into effect in August 2022 to safeguard national advanced strategic technologies.

Our Trade Secret/Company Information Protection Team advises clients regarding industrial trade secret misappropriation cases involving NCT, approval of overseas M&A deals, and technology transfer arrangements based on our team’s keen understanding of the underlying technology and extensive work experience with Korea’s regulatory agencies, including the National Police Agency's security investigation unit, the National Intelligence Service, and the Ministry of Trade, Industry and Energy.

Review of Agreements

Our Team also assists clients with reviewing agreements related to trade secret, national core technology, and Intellectual Property Rights (“IPRs”) (e.g., licensing agreements, joint development agreements, subcontracting agreements, and confidentiality agreements) and provides efficient and timely services for performing due diligence, validity analysis and evaluations of IPR portfolios in the context of licensing and litigation.

Trade Secret Protection Systems

Our team provides trade secret protection consulting services to establish, inspect and strengthen the client’s trade secret and national core technology strategy, information protection, platforms, and tailored security systems. Specifically, our Team has prepared and amended our client’s internal regulations and third-party agreements, advised clients in anticipation of inspections, and provided trade secret protection training to key employees.

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Major Cases

A case filed by a Japanese steel company against a Korean steel company, for damages of more than 1 trillion won in Korea, Japan, and the United States on the grounds of trade secret misappropriation related to the technology for manufacturing directional electric steel plates – Lee & Ko represented the Korean steel company for successful results.
A case in which a key technical expert for AMOLED panel process technology retired from Korea's leading display company and attempted to work for a Chinese competitor – Lee & Ko advised the Korean display company regarding non-compete enforcement and trade secrets misappropriation case for successful results.
A case in which technical experts who previously worked for Company A leaked trade secrets related to a photosensitive injection device used for manufacturing ultra-thin film liquid crystal display (TFT/LCD) panels in the process of moving to Company B – Lee & Ko was instrumental in both criminal and civil actions where the experts were found guilty for violating their confidentiality obligations and convicted of violating the Act, to ultimately secure a decision mandating that Company B pay damages to Company A.
A case in which trade secrets were misappropriated while technical personnel from a mobile device manufacturer moved to the manufacturer’s competitor- Lee & Ko advised the mobile device manufacturer in a related criminal case for successful results.
A case in which technical personnel from a drill manufacturer moved to its competitor K and the drill manufacturer alleged trade secret misappropriation against K - Lee & Ko successfully represented K in a civil action filed by the manufacturer.
A case in which a US petrochemical company sued a Korean chemical company (“H”) after their licensing relationship expired, alleging that H’s newly built plant misappropriated trade secrets of the United States petrochemical company - Lee & Ko represented H to reverse the previously adverse decisions in both trade secret misappropriation action and the damages claim before the Supreme Court of Korea.
A case in E-commerce industry, in which Lee & Ko successfully represented a Korean company in a non-compete enforcement action against its former employee.