Medytox(086900) increased the damages claim in its ongoing trade secret infringement lawsuit against Daewoong Pharmaceutical(069620) to 500 billion won from the previous 50 billion won, a tenfold jump. The company expanded the claim size to reflect additional findings during the appeals process on the sales volume and revenue of Daewoong Pharmaceutical's infringing products.
Medytox said on the 3rd that it filed on Jan. 31 an application to amend the claim purpose and causes in the appeals trial for an injunction against trade secret infringement and a damages claim against Daewoong Pharmaceutical and others, which is underway at the Seoul High Court.
The latest claim amount reflects the quantity sold and revenue of Daewoong Pharmaceutical's infringing products confirmed from 2014 through July 31, 2025. Medytox said it calculated the damages by combining an expanded period for damage assessment and the treble and quintuple damages provisions under the Unfair Competition Prevention Act.
Under the Unfair Competition Prevention Act, damages that occurred on or after July 9, 2019, can be increased up to threefold, and damages that occurred on or after Aug. 21, 2024, can be increased up to fivefold. However, whether and to what extent increased damages apply is up to the court.
Medytox claimed 500 billion won using an "express partial claim" method, in which part of the total recoverable amount is claimed first. Damages incurred on or after Aug. 1, 2025, were not included in this claim amount.
This claim amount is different from the damages the court has finalized. It is the amount Medytox is asserting in the ongoing appeal.
Medytox and Daewoong Pharmaceutical have been in legal disputes since 2017 over the origin of the strain, the key raw material of botulinum toxin, and the manufacturing process.
In Feb. 2023, the first trial court partially sided with Medytox and ordered Daewoong Pharmaceutical to pay about 40 billion won in damages. Both companies appealed the ruling, and the second-instance trial is underway at the Seoul High Court.
A Medytox official said, "The strain and manufacturing process are core technological assets accumulated through long-term research and development and investment," adding, "We will diligently make the necessary arguments and proofs to protect the rights and interests of the company and shareholders."
Daewoong Pharmaceutical said, "We will present proof in court," adding, "We will not respond to tactics that inflate the claim amount to appeal to public opinion."