APAA e-Newsletter (Issue No. 40, April 2024)
Up to Quintuple (5x) Damages for Willful Patent Infringement in Korea
John W. Chung, Y.P.Lee, Mock & Partners (The Republic of Korea)
On January 25, 2024, the Korean National Assembly passed a revision bill to the Patent Act that increases exemplary damages for willful infringement from treble to quintuple.
According to the revised Patent Act, which will be effective as of August 21, 2024, a person who intentionally infringes a registered patent or an exclusive license may be liable for quintuple damages. The relevant amendment is as follows:
|
Patent Law (Current) |
Patent Law (As of August 21, 2024) |
| Article 128 (Claim for Compensation for Loss)
(1) A patentee or exclusive licensee may claim compensation for a loss inflicted by a person who has intentionally or negligently infringed the patent or exclusive license. (2) ~ (7) (Omitted) |
Article 128 (Claim for Compensation for Loss)
(1) ~ (7) (Same as Current) |
| (8) Where an infringement of the patent or exclusive license of another person is deemed to be intentional, the court may determine damages not exceeding the triple of the amount recognized as loss under the provisions of paragraphs (2) through (7), notwithstanding paragraph (1).
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(8) Where an infringement of the patent or exclusive license of another person is deemed to be intentional, the court may determine damages not exceeding the quintuple of the amount recognized as loss under the provisions of paragraphs (2) through (7), notwithstanding paragraph (1).
|
| (9) (Omitted)
|
(9) (Same as Current)
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According to the Patent Office, the revised provision which allows punitive damages to be awarded up to 5 times the actual amount of damages is the highest amount awardable compared to other countries. For example, Japan does not adopt a punitive damages system for technology theft, and the United States only allows for punitive damages of up to 3 times the actual amount of loss for willful patent infringement.
The revision aims to prevent malicious technology theft and ensure the effectiveness of damages as a remedy. The revision would also enhance protection for innovators and patent holders while discouraging potential infringers.
Moreover, the revision is expected to foster an environment of innovation and investment by strengthening patent protection. Stronger intellectual property rights will also encourage research and development activities, attract foreign investment, and stimulate economic growth in South Korea.