Seoul, South Korea – A South Korean court has increased the prison sentence ofa former executive of a company that collaborated with SK Hynix, who was accused of leaking the chipmaker’s core technology to China. The executive, identifiedonly as A, was found guilty of violating the Industrial Technology Law and the Act on the Prevention of Unfair Competition and Protection of Trade Secrets.
TheSeoul High Court’s Criminal Division 7 sentenced A to one year and six months in prison, a six-month increase from the original sentence handed down by the lower court. The court also sentenced three other employees, including a research institutedirector who had previously received a suspended sentence, to prison terms ranging from one to one year and six months. The company itself was fined 10 billion won (approximately $7.8 million), an increase of 6 billion won from theinitial fine.
The court found that A had illegally shared SK Hynix’s confidential chip technology with Chinese companies, including schematics for equipment owned by a Samsung Electronics subsidiary. While the lower court had ruled that the technology was jointly owned by SK Hynix and its partner company and only prohibited from being publicly disclosed, theappeals court determined that the transfer to Chinese companies constituted a violation of the law.
The case highlights the growing concerns surrounding the protection of intellectual property in the semiconductor industry, particularly in the context of heightened competition between South Korea and China. The verdict sends a strong message that the South Korean government will take a firm stance against anyattempts to illegally transfer sensitive technologies, especially to rival nations.
This case is likely to have significant implications for the industry, potentially leading to stricter regulations and increased vigilance regarding the protection of intellectual property. The court’s decision underscores the importance of safeguarding sensitive technologies and the potential consequences of violating intellectual property laws.
References:
- Yonhap News Agency. (2024, October 18). SK Hynix executive sentenced to prison for leaking chip technology to China. Retrieved from [link to Yonhap News Agency article]
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