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25-01-07
Increase in Punitive
Damages for Trademark or Design Infringement Up to Quintuple
On
December 27, 2024, the Korean National Assembly passed amendments to the
Trademark Act and the Design Act to increase the maximum award of punitive
damages for a trademark or design infringement from three times the amount of
damages to five times. According to the amendments, if the infringement
of trademark or design rights or an exclusive license thereof is found to be
willful, the court may award punitive damages up to quintuple the actual
damages.
These amendments, which increase punitive damages for willful trademark or
design infringement, are made to align with recent changes to the Patent Act,
the Utility Model Act, and the Unfair Competition Prevention and Trade Secret
Protection Act, raising the cap on punitive damages from three times to five
times.
These amendments will allow right holders to seek punitive damages up to five
times the actual damages for a willful trademark or design infringement.
This is expected to more effectively deter such infringements and improve the
remedies for damages. Furthermore, the amendments aim to strengthen the
protection of intellectual property rights in Korea by aligning the protection
offered under trademark and design laws with those under patent, utility model,
and unfair competition laws.
The amendments are expected to be promulgated in January 2025 and will take
effect in July 2025.