Punitive Damages May Now Be Awarded Up To Five Times

On January 25, 2024, National Assembly passed an amendment bill that increases the limit of punitive damages compensation from treble to quintuple under the Patent Act and the Unfair Competition Prevention and Trade Secret Protection Act (the UCPA). As the Utility Model Act applies the Patent Act, quintuple damages also will apply to the Utility Model Act. On the other hand, no equivalent amendment has been made to the Trademark Act, the Design Protection Act, or the Act on Prevention of Divulgence and Protection of Industrial Technology (the APDPIT), and punitive damages under these acts will be maintained at the treble amount.

In addition to increasing the limit on punitive damages, the revised UCPA also introduces new provisions regarding punishment of certain types of trade secret misappropriation and increases the upper limit on fines for corporations, all aimed to provide a deterrent effect against trade secrets misappropriation.