Medytox has increased its damages claim against Daewoong Pharmaceutical for trade secret infringement from 50 billion won to 500 billion won, a tenfold increase. On September 3, the company explained that this adjustment reflects additional sales figures and quantities of the infringing products identified during the appeals process.
Medytox submitted a request to amend the claim and grounds for the lawsuit during the ongoing appeal at the Seoul High Court on August 31. As a result, the damages claim has significantly risen from 50 billion won to 500 billion won.
The company stated that the increase is based on a comprehensive consideration of the sales quantities and revenues of Daewoong's infringing products up to July 31 of last year, the period for calculating damages, and the provisions for increased damages under the Unfair Competition Prevention Act. They have incorporated the damages data collected so far, evidence of intentional trade secret infringement, and the relevant provisions of the Unfair Competition Prevention Act.
According to Medytox, under the Unfair Competition Prevention Act, damages incurred after July 9, 2019, can be multiplied by up to three times, while damages after August 21, 2024, can be multiplied by up to five times. However, the specific application and scope of these multipliers will be determined through court proceedings.
The 500 billion won claim is a 'partial explicit claim.' It represents a portion of the total potential damages calculated so far, and damages incurred after August 1 of last year are not included in this assessment.
Medytox and Daewoong Pharmaceutical have been embroiled in litigation since 2017 over the source of botulinum toxin strains.
In February 2023, the first-instance court ruled partially in favor of Medytox, ordering Daewoong to pay approximately 40 billion won in damages. Both parties have appealed the first-instance ruling, and the second-instance trial is currently underway at the Seoul High Court.
A Medytox official emphasized, "It is essential to establish the principle that the responsibility for intentional technology theft far outweighs the economic benefits gained from such infringement to protect technological innovation and fair competition in South Korea."
Daewoong Pharmaceutical stated that it plans to respond legally to ensure that shareholder value is not compromised.
Medytox submitted a request to amend the claim and grounds for the lawsuit during the ongoing appeal at the Seoul High Court on August 31. As a result, the damages claim has significantly risen from 50 billion won to 500 billion won.
The company stated that the increase is based on a comprehensive consideration of the sales quantities and revenues of Daewoong's infringing products up to July 31 of last year, the period for calculating damages, and the provisions for increased damages under the Unfair Competition Prevention Act. They have incorporated the damages data collected so far, evidence of intentional trade secret infringement, and the relevant provisions of the Unfair Competition Prevention Act.
According to Medytox, under the Unfair Competition Prevention Act, damages incurred after July 9, 2019, can be multiplied by up to three times, while damages after August 21, 2024, can be multiplied by up to five times. However, the specific application and scope of these multipliers will be determined through court proceedings.
The 500 billion won claim is a 'partial explicit claim.' It represents a portion of the total potential damages calculated so far, and damages incurred after August 1 of last year are not included in this assessment.
Medytox and Daewoong Pharmaceutical have been embroiled in litigation since 2017 over the source of botulinum toxin strains.
In February 2023, the first-instance court ruled partially in favor of Medytox, ordering Daewoong to pay approximately 40 billion won in damages. Both parties have appealed the first-instance ruling, and the second-instance trial is currently underway at the Seoul High Court.
A Medytox official emphasized, "It is essential to establish the principle that the responsibility for intentional technology theft far outweighs the economic benefits gained from such infringement to protect technological innovation and fair competition in South Korea."
Daewoong Pharmaceutical stated that it plans to respond legally to ensure that shareholder value is not compromised.
* This article has been translated by AI.
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