• Journal of Korea Technology Innovation Society
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• v.19 no.3
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• pp.634-657
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• 2016

This study analyzes relationship between utilizing patents and trade secrets of firms empirically by using Koran Innovation Survey data. A number of prior theoretical studies have been discussed by assuming the patents and trade secrets used as alternative mutual relations. However, the use of patents and trade secrets can be used as a complementary and alternative methods generally based on a variety of firm and innovation characteristics. In this study, after controlling for nature of businesses, industry and innovation, the relationships between patent and trade secrets were analyzed by using 2005, 2008, 2010, 2012 and 2014 cross-sectional data. Prior to 2010, the relationship of patents and trade secrets was used as a complementary, while the result of 2014 showed that patents and trade secrets were utilized by firms independently. However, because we couldn't completely rule out the possibility that this result is caused by the difference between surveys, we performed a additional analysis. In conclusion, the independent relationship between patents and trade secrets may be caused by the increased number of patent applications and preference for the patent by firms since 2010.

• Journal of Korean Society of Occupational and Environmental Hygiene
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• v.21 no.3
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• pp.128-138
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• 2011

Objectives: It has been pointed out that there are problems in handling and managing chemicals due to trade secrets of Material Safety Data Sheet(MSDS). To date, some company intentionally leave out of several parts and use an inaccurate expression in MSDS. In particular, with the result of the inspection of the government and labour community, it is required that the 2nd section in MSDS included the composition and information on ingredients has to be provided with comprehensive expression to secure more reliability. Methods: Therefore, this study is aimed: 1) to recognize the current status of trade secrets of MSDS in workplaces with both domestic manufacturers of chemical products and multinational corporations; 2) to make contributions to prevention of the industrial accidents by providing the accurate information of MSDS; 3) to improve the risk communication system related with chemicals; 4) to impress workers on the importance of right of known for MSDS. With the result we analyzed the status of trade secrets in MSDS in 73 companies, such as petrochemistry production, paint production, metal processing oil production, detergent production, and international company related with chemicals, we have found that 38,150 (45.5%) have the trade secrets parts in the total number of 83,832 in MSDS. Also, based on the 288 MSDS gathered by the Occupational Safety and Health Research Institute (OSHRI) from 2005 to 2009, 41.7% of the MSDS are classified into the trade secrets. Conclusions: Therefore, to procure an assurance system of MSDS, we suggest that a MSDS picking up and checking system be legislated in the Occupational Safety and Health Act to protect workers from the unidentified chemical hazards due to the secret trade of MSDS.

• Journal of Korean Society of Occupational and Environmental Hygiene
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• v.26 no.3
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• pp.293-300
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• 2016

Objectives: This study is designed to survey the current status of trade secrets in GHS MSDS circulated in workplaces and indicate problems in the chemical information system. According to the survey results, we suggest management plans including political improvement of the trade secret system for MSDS and technical support to workplaces following enhanced chemical communication. Methods: To review this subject, we selected 153 manufacturers and six importers working in such fields as organic chemical production. We then investigated the retention status of GHS MSDS, application of trade secrets, and the content of trade secret components in MSDSs for mixtures. Results and Conclusions: Within the results, the content of trade secret ingredients was 67.4% (single: 9.0%, mixture: 75.6%). This is an increase compared with the previous results of 45.5% in 2011. Among 59,393 GHS MSDSs, 74.5% had ingredients less than 10% trade secret components, 19.1% had 10-30%, 1.8% had 30-50%, and 4.6% had more than 50%. To settle this issue, we recommend registration or evaluation of trade secrets as implemented in advanced countries. Also, business should be required to undergo regular evaluations of application status for trade secrets in workplace GHS MSDS.

• Journal of Korean Society of Occupational and Environmental Hygiene
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• v.22 no.1
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• pp.20-25
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• 2012

Objectives: Hazard identification is the most important step in occupational health monitoring at the workplace. This paper reviewed the several related stuffs to the hazard identification in the semiconductor industry. Methods: I checked the MSDS system, chemical toxic informations, trade secrets and by-products by experience and the literature used in semiconductor industry. Results: I found and experienced as follows; (1) There are a few inventory and history of chemicals used in workplace. Toxic information of chemicals to be available is very limited. (2) There are many trade secrets in MSDS for chemical mixtures. It is difficult to identify the accurate information from MSDS. (3) By-products is necessary to identify that they will produce in workplace. Conclusions: It is necessary to regulate the obligations of employers which check the inventory and history of chemicals used in workplace. It is necessary to amend the trade secrets in MSDS system.

• Journal of Technology Innovation
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• v.24 no.2
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• pp.143-175
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• 2016

In this study, we have analyzed the impact of firm, innovation and industry characteristics on firm's appropriation strategy focusing of the relative preference of patents and trade secrets by using the Korea Corporate Innovation Survey 2005, 2010 and 2014 data. According to the analysis results, companies with characteristics such as venture, high-technology industry, receipt of public R&D subsidies, performing product innovation, high R&D expenditure, prefer patents to trade secrets relatively. However, firm size and R&D cooperation did not have a statistically significant effect on the relative preference. This shows that policy on appropriation system considering the industry characteristics may be more effective. Companies in the industries with a high market concentration showed that trade secrets are preferred, especially these characteristic was distinctly in small and venture companies. This means that the increase in strategic patent applications of the incumbent firms is able to restrict the patent activities in small and venture companies. Because the excessive increase in strategic patents is likely to constrain the innovation activities of small and venture firms ultimately, policy initiatives to limit the abuse of strategic patent applications is required.

• Journal of Korean Society of Occupational and Environmental Hygiene
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• v.29 no.1
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• pp.27-33
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• 2019

Objective: This study analyzed the status of the application of trade secrets in MSDSs according to size and type of industry. The contents of the MSDS non-public approval policy are summarized. We suggest proactive improvement requirements related to the operation of the MSDS non-public approval policy. Methods: To review this subject, we selected 153 manufacturers and six importers in such fields as organic chemical production. The trade secrets application status and ratio (%) of MSDSs by industry size and industry classification were investigated. Improvements toward a proactive system related to the operation of the MSDS non-public approval policy under the Occupational Safety and Health Act(OSHA) were summarized. Results and Conclusions: According to the results, the trade secret ratio in MSDSs by industry size was 33% in workplaces with less than 50 employees, 23.1% in workplaces with more than 50 but less than 100 workers, 73% in workplaces with more than 100 workers, and 83.4% in workplaces with 300 or more workers. For the trade secret writing rate for MSDSs by industry, the highest was MOCCP (Manufacture of ink, paint, coating and similar products) at 80.9%. MOC (Manufacture of other chemicals) was the lowest at 16.2%. We propose four proactive efforts to minimize the administrative burden of implementation of the MSDS non-public approval policy. The results of this study can be used as basic data for policy improvements to make more effective use of MSDS.

• Convergence Security Journal
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• v.15 no.7
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• pp.39-45
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• 2015

Industrial secrets that companies own recently protected by various act related industrial security such as Trade Secret Act, Act on Prevention of Divulgence and Protection of Industrial Technology, etc. However, despite such protection infringement and leakage accidents of industrial secrets is increasing every year. According to a survey conducted by KAITS(Korean Association for Industrial Technology Security) annual average of estimated damage by industrial secrets leakage is estimated to be "50 trillion won." This is equivalent to the amount of annual revenue of small businesses more than 4,700 units. Following this, industrial secrets leakage causes serious damages to competitiveness of nation and companies and economic. However investment and effort to the industrial secrets leakage crime is lack of level compared to the scale of damage. Actually, most companies except some major companies are lack of response action about industrial secrets leakage because of shortage of separate organization, workforce, budget for industrial secrets leakage security. This paper aims to understand the overall flow of the industrial secrets leakage crime through various taxonomy such as cause of occurrence and leakage pathway and grasp the condition of damage from industrial secrets leakage through analyzation of internal and external industrial secrets leakage crime. This is expected to be the basis for related research.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.76
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• pp.1-20
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• 2017

The industrial technology (including trade secrets), which is commonly understood as systematic and applied technical knowledge, can be transferred to third parties by contracting for the transfer of technology or by granting of a licence. The activity of industrial espionage, due to the gradual increase of the economic interests of intellectual property, is displaying intensively in order to gain advanced technology information. With our outstanding high technology, but compared to the level of the advanced countries, the technical protection systems, the legal protection measures and the systematic management thereof may still be insufficient. Our industrial technology outflow abroad, due to the vulnerability to the security control system in our country, has been increasing since the 2000. Computer software and SNS, such as smart devices, appear as a rapid change in the technical information environment. In order to minimize the dead zone of a new industrial security, the country's organic activity is being conducted. In 2006, Industrial Technology Outflow Prevention and Protection Law was enacted, which emphasized the responsibilities of the country. In this paper for the economic entity's efforts to prevent technology leakage oversea, I have looked to how the industrial technology can be protected in terms of national security and economic benefits of our enterprises. To solve the above-mentioned problems hereof, Korean government should willingly establish a reliable legal system for supporting to enterprise's operations, and Korean companies should autonomously introduce a synthetic technology protection system and incorporate the confidentiality clauses in an international transfer of technology agreement with third parties.

• Korean Security Journal
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• no.61
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• pp.333-352
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• 2019

In January and August 2019, there were amendments to the Unfair Competition and Trade Secrets Protection Act (UCPA) and the Industrial Technology Protection Act(ITPA). These amendments will contribute to technology protection. But these amendments need to be supplemented further. In the area of civil remedies, despite the introduction of treble damages in the case of the UCPA and ITPA, the provisions related to the submission of supporting data have not been maintained. Therefore, it is necessary to recognize the claim of the other party as true if it is maintained at the level of the revised Patent Act and the scope of submission of supporting data. And the enforcement of the case of compulsory submission for the calculation of damages, and the order of filing documents are not followed. ITPA, on the other hand, has introduced the compensation for damages, but there is no provision for estimating the amount of damages. Therefore, it is necessary to estimate the amount of lost profits, profits, and royalties. In the area of criminal remedies, both the UCPA and ITPA have raised the penalty, but the sentencing regulations are not maintained. In addition, although the recent outflow of technology has expanded beyond organizational deviations to organizational outflows, amendments need to be made in relation to the serious consequence for the punishment of related juristic persons, such as companies involved in it. It should be noted that Japan and the United States have corporate regulations and regulations. In addition, in relation to the confiscation system, Act on Regulation and Punishment of criminal proceeds concealment require that domestic defenses be confiscated by defense industry technology, while trade secrets and industrial technologies are confiscated only by "foreign" outflows, and an amendment is necessary.

• Journal of Arbitration Studies
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• v.32 no.4
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• pp.53-85
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• 2022

Small and medium-sized enterprises ("SMEs") are vulnerable to trade secret misappropriation. Korea's legislation for the protection of SMEs' trade secrets and provision of civil, criminal, and administrative remedies includes the SME Technology Protection Act, the Unfair Competition Prevention Act, the Industrial Technology Protection Act, the Mutually Beneficial Cooperation Act, and the Subcontracting Act. Among these acts, the revised SME Technology Protection Act of 2018 introduced the "administrative technology misappropriation investigation system" to facilitate a rapid resolution of SMEs' technology misappropriation disputes. On September 27, 2021, Korea's Ministry of SMEs announced that it had reached an agreement to resolve the dispute between Hyundai Heavy Industries and Samyeong Machinery through the administrative technology misappropriation investigation system. However, not until 3 years and a few months passed since the introduction of the system could it be used to resolve an SME's technology misappropriation dispute with a large corporation. So there arose a question on the usefulness of the system. Therefore, we conducted a comparative legal analysis of Korea's laws enacted to protect trade secrets of SMEs and to address technology misappropriation, focusing on their legislative purpose, protected subject matter, types of misappropriation, and legal remedies. Then we analyzed the administrative technology misappropriation investigation system and the cases where this system was applied. We developed a proposal to enhance the usefulness of the system. The expert interviews of 4 attorneys who are experienced in the management of the system to check the practical value of the proposal. Our analysis shows that the lack of compulsory investigation and criminal sanctions is the fundamental limitation of the system. We propose revising the SME Technology Protection Act to provide correction orders, criminal sanctions, and compulsory investigation. We also propose training professional workforces to conduct digital forensics, enabling terminated SMEs to utilize the system, and assuring independence and fairness of the mediation and arbitration of the technology misappropriation disputes.