Preemptively Responding to Technology Leakage with Patent Big Data and Strengthened Legal Measures for Technology Protection

The Korean Intellectual Property Office (KIPO Commissioner Kim Wan-gi) presented and approved the “Measures to Combat Technology Leakage for Strengthening Global Industrial Competitiveness” at the 244th Meeting of the Foreign Economic Ministers Council chaired by Deputy Prime Minister Choi Sang-mok held at the Government Complex in Seoul on October 17 (Thursday). These measures are expected to further tighten the protection network for advanced technologies which are critical for the survival of domestic companies and economic security.

These measures were formulated to address concerns over potential national damage* caused by the increasing leakage of advanced technologies in industries such as semiconductors and secondary batteries. The plan aims to establish a national technology protection system to prevent technology theft which hampers the growth of SMEs and venture companies thereby enhancing global industrial competitiveness and fostering a dynamic economy. The measures include strengthening responses to technology leakage by leveraging core technology protection tools such as trade secret protection** and the analysis of patent big data.

In the past five years (2020-2024 August) there have been 97 cases of attempted technology leakage abroad with an estimated damage of 23 trillion KRW.
** ① Up to five times the damages can be claimed for trade secret violations with imprisonment or fines possible. ② In 2024 70.3% of technology leakage cases referred to the police were related to trade secrets highlighting the importance of trade secret protection.
1. Strengthening Advanced Technology Protection through Patent Big Data Analysis and Targeted Regulatory Adjustments

KIPO will utilize patent big data to detect technology leaks and share this information with counterintelligence agencies to facilitate immediate investigations thereby establishing a proactive prevention system. KIPO’s patent database contains 580 million records including sophisticated technological information from global companies research institutes and universities. This data which includes global R&D trends key personnel and technology trends can be analyzed to detect potential technology leaks. In recognition of the value of patent big data as counterintelligence KIPO was designated as a national counterintelligence agency in April this year. KIPO will also provide related government agencies with patent trends rights transfer information and key personnel data to support the protection of national core technologies.

Furthermore KIPO plans to enhance nationwide technology leakage investigations by leveraging its pool of technical experts. Since determining the similarity of technologies is crucial in such investigations KIPO will utilize its 1400 examination and trial experts from all technical fields to support investigative agencies in determining the validity of technology-related crimes during the intelligence and investigation stages. To support this initiative legal grounds will be established under the Unfair Competition Prevention and Trade Secret Protection Act (UCPA).

Additionally the UCPA will be revised to allow more precise responses to the increasingly sophisticated methods of technology leakage. The amendments will enable civil and criminal remedies for acts that facilitate trade secret violations such as job placement with the intent of leaking technology. The introduction of a whistleblower reward system for reporting trade secret violations is also planned. Furthermore new provisions will be created to punish the re-leakage of trade secrets abroad through foreign subsidiaries effectively addressing new forms of technology leakage.

(Current) Penalties exist only for the acquisition or use of illegally obtained trade secrets → (Improvement) Leakage will also be punishable.
2. Introducing a Korean-style Evidence Collection System and Centralizing Jurisdiction to Protect Against Technology Infringement

KIPO will focus on improving the conditions for preventing technology leakage by advancing the legal framework for technology infringement lawsuits and improving the treatment of research personnel. To address the low success rates and damages awarded in technology infringement lawsuits* due to insufficient evidence a Korean-style evidence collection system will be introduced. Under this system experts designated by the court will be able to collect and investigate evidence at the site of a technology infringement and witness examinations will be conducted in the presence of court officers significantly improving the collection of evidence.

Plaintiff success rate over the past five years: 25.6% for trade secret lawsuits compared to 55.6% for all civil cases. Median damages awarded in patent infringement lawsuits (1997-2017): (Korea) 60 million KRW vs. (U.S.) 6.57 billion KRW.
To enhance the expertise of judges in handling technology infringement cases KIPO will also centralize jurisdiction for such cases. Currently centralized jurisdiction* applies only to civil cases related to patent rights utility models design rights trademarks and plant variety protection. This will be expanded to include civil and criminal cases involving trade secrets industrial technology protection and unfair competition acts.

Centralized jurisdiction means that first-instance trials will be held at six regional courts (Seoul Suwon Daejeon Daegu Gwangju and Busan) and appeals will be handled by the Patent Court.
Moreover KIPO will work to prevent key domestic researchers from leaving for overseas positions by expanding the recruitment of technical personnel (135 patent examiners) and the selection of Korean Industrial Site Professors (Ministry of Employment and Labor 100 positions) as well as by promoting the expansion of the Employee Invention Compensation System.

3. Expanding Technology Protection Consulting and the Idea Certification System to Combat SME Technology Theft

KIPO will ensure that entities such as companies universities and research institutes are better equipped to respond to technology leakage. As part of preventive measures KIPO will offer Technology Protection Consulting to 40 small and medium-sized enterprises (SMEs) annually that hold national strategic and core technologies. Customized consulting services will also be newly provided to universities and research institutes.

Support systems for preventing and addressing technology theft at SMEs will be strengthened. To help SMEs prove the originality of ideas (technical or business information) shared during negotiations KIPO will introduce the Idea Certification System. This system will allow SMEs to register the digital fingerprint of evidence materials receive a certificate and obtain presumed recognition of the original idea. The Public Interest Patent Attorney Center will also be expanded into the Industrial Property Law Support Center offering new support such as covering civil litigation costs and providing legal advice to SMEs whose trade secrets have been violated. Additionally KIPO plans to enhance the functionality of the Industrial Property Rights Dispute Mediation Committee to facilitate the swift resolution of disputes by expanding court and prosecutor-led mediation efforts and linking deliberate non-compliance cases to investigations.

KIPO Commissioner Kim Wan-gi emphasized “To counter the increasingly advanced and sophisticated attempts at overseas technology leakage we must also adopt more scientific and meticulous responses. By leveraging KIPO’s key resources—patent big data and technical experts—we aim to detect technology leaks early and facilitate swift investigations. We will focus on building a comprehensive technology protection system that ensures all forms of technology leakage are caught within the legal framework thereby strengthening industrial competitiveness and driving the dynamic economy.”

Website: : http://www.wip-news.com/news/articleView.html?idxno=25657