REMEDIES FOR MISAPPROPRIATION OF TRADE SECRETS

(1) Injunctive relief/preliminary injunction for misappropriation

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A trade secret owner can file a request for an injunction or prevention of misappropriation, against any person who misappropriates or is likely to misappropriate his trade secrets.

A leaked trade secret can bring about irreparable harm to the trade secret owner and such harm usually cannot be recovered once the trade secret has been disclosed. Therefore, an owner who suspects a possible trade secret misappropriation will, in hopes of deterring more extensive leakage, often petition for a preliminary injunction against infringement prior to filing for a lawsuit on the merits. However, similarly to patents, unless it is absolutely probable to convince the judge that a trade secret infringement has taken place, one should proceed with filing for a preliminary injunction with caution.

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(2) Claim for compensatory damages

A trade secret owner can request

compensation of damages against the party who damaged his business interest through an intentional or negligent misappropriation of trade secrets.

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(3) Criminal liability for trade secret misappropriation

The action of acquiring, using, or leaking trade secrets to any third party with the purpose of making an improper profit or causing damage to a trade secret owner constitutes a criminal offense.

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Unfair Competition Prevention Act states that committing a trade secret misappropriation offense is punishable by up to ten (10) years in prison or by a fine not exceeding KRW 500 million. Furthermore, a stronger penalty is imposed for trade secret misappropriation to another country, with penalties extending to imprisonment for not more than fifteen (15) years or a fine not exceeding KRW 1.5 billion.

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• Importance of criminal lawsuits in trade secret cases

Obtaining legal remedies against a third party's trade secret misappropriation is conditioned on proving that the other party has acquired, used and leaked the trade secret by improper means. However, it is very rare that a person misappropriating trade secret would take such improper actions publicly or leave any conspicuous trace of his/her misconducts, thus the company that owns the trade secret would often face great difficulties in proving the act of  misappropriation by the infringer. In light of this, the most effective way of procuring enough supporting evidence would be to file a criminal complaint against alleged infringer and request investigative agencies to execute search and seizure against the properties, residencies of defendant, and then use the materials found through that process in civil litigation in support of his/her claim for injunction and damages.