AMENDMENTS TO REGULATIONS GOVERNING UNFAIR TRADE PRACTICES IN KOREA
Under the Act on the Investigation of Unfair International Trade Practices and Remedy against Injury to Industry (hereinafter "the Act"), the Korea Trade Commission (KTC) has the authority to conduct investigations and bring enforcement actions against unfair trade practices in Korea, including infringement of intellectual property (IP), such as patents, trademarks, and copyrights. An amendment to the Act was recently announced on March 21, 2008, with the aim of enhancing the effectiveness of KTC's activities against unfair trade practices and encouraging the public to take advantage of KTC procedures. The amendment will enter into force on September 21, 2008. A summary of the major amendments are as follows.

Introduction of an Affirmation Procedure

Under the present Act, the KTC can order corrective measures to block the specific export/import route for a particular product if it determines that the product infringes another's IP right(s). Unfortunately, the relief is limited to the specific export/import route. In other words, third parties may circumvent the export/import block by simply using a different export/import route. Accordingly, a separate petition must be filed with the KTC to block the subsequent export/import route. This is highly inconvenient and impractical because obtaining a new KTC blocking order is a time consuming process.

Under the new Act, any person and/or party can seek relief from the KTC to prevent the export/import of infringing products regardless of the route taken by the violating party. Only the product must be affirmed as being identical to the one that the KTC previously determined to infringe the IP right(s).

Acceleration of Investigation

It is at KTC's sole discretion whether to initiate an ex officio investigation on unfair trade practices. Once it is determined that an investigation is needed, KTC sets its own deadline for making a decision.

Previously, KTC decided whether to initiate an investigation within 30 days of filing the complaint and usually set its deadline at approximately one (1) year from the starting date of the investigation.

Under the new Act, the KTC will be given 20 days after the filing of the complaint to determine whether to initiate an investigation. After the investigation, a decision will be provided within six (6) months. This six (6) month deadline can be extended twice by up to two months each time, if appropriate reasons are given. Examples of acceptable reasons include the existence of a pending related dispute (e.g. court lawsuit or administrative action), a petition for extension filed by one of the parties based upon reasonable grounds, or difficulties in investigating substantive matters.

Other Amendments

Under the prior Act, the petitioner needed to provide a security deposit when requesting provisional measures for an immediate suspension of unfair trade practice by the KTC. Under the new Act, the security deposit is not required at the time of requesting the provisional measure. Now, the petitioner must simply provide the deposit before the KTC makes a decision regarding the provisional measure.

Moreover, to encourage parties to take advantage of KTC's procedures, persons who request the investigation and/or persons who provide important information/materials regarding the unfair trade practices are awarded up to 10% of any monetary penalty imposed against the violating party.