Reasons for Proposal
The current Act aims to strengthen win-win cooperation between large enterprises and small and medium-sized enterprises to enhance their competitiveness and reduce polarization among them, thereby achieving mutual growth and laying the foundation for sustainable growth of the national economy.
However, technology theft along with an excessive reduction in the unit price threaten the very existence of small and medium-sized enterprises, and such unfair conduct undermines the innovative growth of subcontractors. Although technology theft is a serious criminal act, some companies still demand technical data for various reasons, and it is difficult for subcontractors to decline such requests and still maintain their business relations. As a result, small and medium-sized enterprises are discouraged from developing technologies, which limits their growth and in some instances even forces business closure.
Therefore, the Act aims to enhance the restriction on unfair transactions to eradicate technology theft.
Details
A. Define an act of using or disclosing technical data, which is not publicly known and managed as a secret, for fraudulent purposes as an act of technology misappropriation (Article 2 subparagraph 12 newly inserted)
B. Newly establish a separate provision prohibiting any request for technical data and ban any act of technology misappropriation by consignors (Article 25-3 newly inserted)
C. Mandate that a party who denies committing an act of technology misappropriation as claimed by the consignee in a lawsuit for damages present proof of its specific conduct (Article 25-4 newly inserted)
D. Introduce a punitive damages system that imposes liability for technology misappropriation for an amount up to five times the amount of damages sustained (Article 40-2 (3) newly inserted)
E. Newly establish a provision to estimate the amount of damage sustained in connection with the claim for damages for technology misappropriation (Article 40-3 newly inserted)
F. Introduce a data submission order system that allows the court to order the parties to submit data to lessen the burden of proof for companies that have sustained damage and prohibit the parties from not following such orders on the grounds of trade secrets. In this case, allow the court to introduce a confidential hearing procedure to minimize the leakage of trade secrets (Article 40-4 newly inserted)
G. Raise the amount of administrative fine imposed on those who fail to submit data under Article 40, who submit false data, and who reject, interfere with, or avoid investigation, from 10 million won to 50 million won (Article 43)
