The amended trademark and design protection laws, which impose liability for damages up to five times for intentionally infringing trademark rights and design rights, will take effect on the 22nd.
According to the Korean Intellectual Property Office, the number of domestic online counterfeit product monitoring and enforcement actions increased from 137,382 cases in 2020 to 272,948 cases in 2024, doubling over five years. The Korean Intellectual Property Office noted that the reason why intellectual property infringements continue is that the profits gained from infringement outweigh the costs of paying the rightful value for intellectual property, which has been continuously pointed out as a reason for the amendment.
This amendment expands the punitive damages system, which was introduced last year for patent and unfair competition law regarding patent and trade secret infringement and idea theft, to the fields of trademark and design. China and Korea are the only countries that impose damages up to five times for trademark and design infringements. Japan does not have a punitive damages system for patent, trademark, or design infringements, while the United States provides punitive damages of up to three times for patent and design infringements and up to two times for trade secret infringements.
Shin Sang-gon, the director of the Korean Intellectual Property Office's Industrial Property Protection Cooperation Division, said, "With this amendment, we expect a reduction in trademark and design infringement, and that corporations suffering from infringement can receive substantial compensation," adding, "To ensure that punitive damages are properly awarded, it is important to prove the intentionality of the infringement, so we will push for institutional improvements such as the introduction of data submission orders."