Represented a Major Cosmetics Company and Won a Lawsuit regarding the Alleged Seizure of Patents [Seoul Central District Court, 14 May 2021]
2021.05.14.
Yulchon won a lawsuit regarding alleged patent seizure by a major
cosmetics company (“Company E”) (total lawsuit value USD 20 million).
Company E specializes in cosmetics OEM and ODM, manufacturing facial
masks from well-known brands, and is preparing for an IPO. However, one of
Company E’s subcontractors alleged that Company E used its superior position to
seize its subcontractor’s patent rights, spreading such libel among Company E’s
partners, the Fair Trade Commission, and the Korea Exchange. In the absence of
direct evidence, Yulchon carefully examined the facts of the case and was able
to uncover indirect evidence, asserting that the patent rights in question were
lawfully transferred to Company E, and preemptively filed for affirmation of
the non-existence of liabilities. The court ruled in favor of Yulchon and
Company E, affirming that the patent rights in question lawfully belong to
Company E, and that Company E did not gain any unjust enrichment.
This case is significant in that, despite the absence of direct
evidence, Company E’s legal exposure risk was significantly reduced by
preemptively confirming Company E’s ownership of patent rights, leading to
favorable conditions for any future IPO or M&A proceedings.
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