Protecting Trade Secrets in Korea
Essential Considerations for Safeguarding Trade Secrets in the Korean Market: Top 5 Factors to Keep in Mind
Definition of a Trade Secret in Korea
A trade secret in Korea refers to any confidential information, such as designs, processes, formulas, or similar knowledge, that is not known or easily obtainable by others and can bring economic advantages to the entity holding the trade secret.
However, it is important to note that in Korea, as well as in most countries, trade secrets are protected against potential infringers only if the trade secret holder can demonstrate that they have made reasonable efforts to safeguard the confidentiality of the trade secret and can establish the existence of such efforts.
Protection of Trade Secrets in Korea: The Basics
1. Identify your Trade Secrets
Prepare a document in both English and Korean languages to identify the trade secrets held by your company. Please note that it is not necessary to disclose the specific details of the trade secrets in this document.
2. Korean Non-Disclosure & Non-Compete Agreements
Ensure that all parties you engage in business with in Korea, including suppliers, employees, directors, and other relevant stakeholders, sign comprehensive Non-Disclosure and Non-Compete Agreements specifically tailored to the Korean legal framework. These agreements should include a provision for liquidated damages.
3. Establish a Trade Secret Protection Scheme for Korea
Before developing a trade secret protection scheme, carefully assess the potential risks of trade secret misappropriation by various parties such as employees, vendors, suppliers, and customers. Conduct a thorough analysis and document the trade secret protection scheme. Integrate this scheme into your business operations. We highly recommend consulting with a business or legal consultant to ensure the effectiveness and appropriateness of the scheme.
4. Conducting Due Diligence in Korea
Implement thorough due diligence processes when hiring, terminating employees, engaging with external business partners, and selecting vendors in Korea. This includes careful evaluation, background checks, and comprehensive assessments to ensure the integrity and reliability of individuals and entities involved in your business operations.
5. Assert Your Rights in Korean Courts
It is crucial to demonstrate a willingness to enforce your rights in Korean courts. Failing to do so may create a perception that your company lacks assertiveness, potentially making you vulnerable to future infringements. Even prominent Korean conglomerates resort to litigation to safeguard their intellectual property, sometimes as a deterrent against potential violators. Therefore, it is important not to overlook the option of legal action and to proactively protect your rights through appropriate legal channels.
If you have any questions or needs related to this, please feel free to contact us.
Read more:
- Utility Model System in Korea
- Copyright Protection in Korea for Works of Foreigners
- Protecting Trade Secrets in Korea
- Patent and Trademark Litigation in Korea
- Patent and Trademark Trial System in Korea
