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South Korea Implements Revised Patent Laws to Prevent Technology Leakage
23 Jan 2025
South Korea Implements Revised Patent Laws to Prevent Technology Leakage
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South Korea's National Assembly recently passed amendments to the Patent Act, Utility Model Act, and Patent Act for Expanding Public Access to Pharmaceuticals. The revised laws, aimed at preventing patent technology leakage and enhancing patent protections, will be promulgated in January 2025 and take effect six months later.
Amendment 1: Stricter Penalties for Violating Secrecy Orders or Overseas Patent Applications
To safeguard national defense, individuals who violate bans on filing patents abroad or breach secrecy orders will face up to 5 years in prison or fines of up to 50 million KRW.
Current South Korean law imposes relatively lenient penalties for such violations. For example, breaching a secrecy order incurs no additional punishment. In contrast, countries like the U.S., Japan, and China impose criminal penalties, such as imprisonment for up to 2 years or fines of $10,000 in the U.S., 2 years and 1 million yen in Japan, and 3–7 years in China.
To ensure effective enforcement, the revised law introduces a "double penalty" system. Violators will be fined up to 50 million KRW, while entities with supervisory responsibilities, such as corporations or their representatives, may face double fines, capped at 100 million KRW.
Amendment 2: Expanded Patent Enforcement to Include Exports
The revised laws expand the definition of patent implementation to include exports, enabling patent holders to seek injunctions against the export of infringing products, claim damages, or pursue legal action for infringement.
Under Articles 2(3) of the Patent Act and the Utility Model Act, as well as Article 225 (Patent Infringement) of the Patent Act, exporting infringing products will now be recognized as an infringement act. Violators may face up to 7 years of imprisonment or fines of up to 100 million KRW.
Previously, South Korea's patent enforcement only covered imports, excluding exports. While customs laws and the Act on Investigation and Remedies for Unfair Trade Practices allowed customs to block exports of infringing goods, they did not support claims for damages or other liabilities.
Amendment 3: Limits on Pharmaceutical Patent Extensions
The amended laws introduce a cap on patent term extensions for pharmaceuticals to a maximum of 14 years from the date of authorization. Furthermore, each extension authorization will be limited to a single patent.
Unlike other countries, South Korea's previous patent laws did not set a maximum term for pharmaceutical patent extensions or limit the number of patents eligible for a single extension. This resulted in longer patent terms for some drugs, delaying the introduction of generics, reducing public access to affordable medicines, and straining health insurance budgets.
The Korea Intellectual Property Office (KIPO) anticipates that the amendments will align pharmaceutical patent terms with international standards observed in the U.S. and Europe, preventing excessive extensions.
These legislative updates aim to enhance South Korea's intellectual property framework by addressing technology security concerns, strengthening patent enforcement, and ensuring equitable access to pharmaceuticals.
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