Case Studies
Meta's AI data utilization controversy, an interview with attorney An Il-woon on eKorea.
Amidst the recent issue of Meta's AI training data utilization, attorney An Il-un of Law firm Veat explained the matter from a domestic legal perspective in an interview with <Korea IT>. Meta announced in May 2023 that it would utilize user data for its AI training, which has triggered backlash globally. The EU has imposed strict regulations based on the General Data Protection Regulation (GDPR), and Brazil and Australia have shown similar reactions. Attorney An Il-un explained that under domestic law, if Meta obtained prior consent from users through its terms of service, the company providing the service is not legally problematic in utilizing data, such as posts from users appearing on its service, for AI. He added that personal information is regulated to require obtaining consent from the data subject through the Personal Information Protection Act, and that posts published on SNS are treated as copyrighted works, and that copyrighted works can be used by those who have received permission from the copyright holder. Attorney An Il-un is an IT specialist lawyer who graduated from the Department of Computer Science and the School of Law at Yonsei University. He has extensive experience in the IT and legal fields, based on his experience working as a section chief at Naver Search Development Center. He is currently active as an IT specialist lawyer at the Korea Bar Association and has served as a legal advisor to numerous government agencies, such as the Ministry of Science and ICT, the Ministry of SMEs and Startups, etc. Law firm Veat is an IT-specialized law firm with high expertise in legal advice regarding AI and data utilization, and contributes to protecting the rights of companies and users based on a deep understanding of data protection and legal issues related to AI. Read the full article: Meta utilizes user data for AI training... Global backlash spreads < Personal information protection topic < IT < ICT < Article body - Korea IT (ekoreanews.co.kr) Thank you. Law firm Veat
[Obstruction of Business Crime] Legal Response to Unilateral Cancellation of Sold Goods
Law firm Veat received a request from Company A (hereinafter "the client") engaged in the accommodation industry to review the possibility of criminal, civil, and administrative measures regarding the case where a specific accommodation product was unilaterally restricted from use after being sold, inducing the customer to repurchase. Such actions can cause legal issues beyond a simple contract termination, particularly there is a close relationship with Article 314 of the Criminal Code regarding obstruction of business and Article 750 of the Civil Code regarding claims for damages. Legal response to unilateral cancellation of sold products 『Article 314 of the Criminal Code regarding obstruction of business』 Actions such as unilaterally restricting the use of an accommodation product after selling it, providing false reasons for cancellation, and inducing repurchase may be subject to Article 314 of the Criminal Code regarding obstruction of business. The relevant article prohibits actions that obstruct another’s business through the dissemination of false information or deception. If a company sells an accommodation product and, before the customer can use it, unilaterally restricts its use and induces repurchase by providing false reasons for cancellation, this may be considered obstruction of business under Article 314 of the Criminal Code. The perpetrator may face criminal penalties, and the victimized company may protect its rights through legal action. 『Claims for damages under Article 750 of the Civil Code』 In addition to criminal measures, the victimized company should carefully review whether it can file claims for damages based on Article 750 of the Civil Code. Article 750 of the Civil Code stipulates the right to receive compensation for damages caused by another’s unlawful act. If the unilateral cancellation of sold products constitutes a breach of contractual obligations based on the specific facts, the victimized company may claim damages. Compensation can be requested for the economic losses or business losses resulting from the cancellation, which may be determined by the court based on reasonable standards. Furthermore, the unilateral cancellation of the contract may also raise issues of breach of contract. This may be interpreted as the seller failing to fulfill its contractual obligations, which may lead to additional claims for contractual damages, making legal responses complex. Such unilateral contract cancellations and repurchase inducements are issues that may involve criminal, civil, and administrative liability beyond simple consumer dissatisfaction. We recommend that you receive professional legal advice to protect your rights through thorough legal review. Law firm Veat has handled various cases related to obstruction of business and has a deep understanding of complex criminal, civil, and administrative matters, providing clients with optimized legal advice. If you have any questions regarding the Criminal Code, Civil Code, obstruction of business, or claims for damages, please feel free to contact Law firm Veat. Thank you. Law firm Veat
[Law firm Veat TIP] Could even simple designs like emoticons be protected as works of creation?
Law firm Veat’s TIP team (Technology intellectual Property) contributed a detailed explanation about emoji works to the startup media platform Platum. Recently, the creativity and originality of emojis are being recognized, increasing the opportunities for developers and artists who created them to receive legal protection. It provides a detailed explanation of whether creativity can be recognized even in simple, symbolic designs and whether they can be protected as copyrighted works. [해당링크] allows you to view this column. The column published by Law firm Veat’s TIP team provided useful information to developers and artists who created emojis. From simple-design emojis to complex digital art pieces, through copyright law experts, learn what kind of creations developers and artists can protect to safely protect your valuable creations and rights. Law firm Veat’s TIP team, specializing in intellectual property and copyright, provides professional advice on legal issues related to various works. If copyright infringement or disputes arise, we will protect your creations through accurate and prompt legal advice. If you have any questions about copyright protection or need legal advice, please feel free to contact Law firm Veat’s TIP team. Thank you. Law firm Veat
[Chungcheong Times] Biogas Law for a Sustainable Future_Law firm Veat, National Su Attorney
Law firm Veat's National Suk-goo Partner Attorney published a column in Chungcheong Times on the legal issues and future directions related to the Act on Promoting the Production and Use of Biogas Utilizing Organic Waste. The following is a summary of the column, and those interested in the full text can refer to the link at the bottom. Korea's food waste management methods are gaining international attention. Previously, food waste was recycled into feed or compost, but there were problems such as odor, quality deterioration, and carbon emissions. To solve these problems, the "Act on Promoting the Production and Use of Biogas Utilizing Organic Waste" (shortened to "Biogas Act") was enacted in 2022 and went into effect at the end of 2023. This introduced a new method of converting food waste into energy to reduce carbon emissions and promote biogas production. The Biogas Act focuses on converting food waste into biogas to produce methane, similar to city gas, going beyond existing recycling methods. This is expected to contribute to carbon neutrality, reduce environmental pollution, and promote the production of renewable energy. The government has set a goal of producing 5 billion Nm3 of biogas annually by 2026 to replace LNG and reduce greenhouse gases. Along with this, an economic effect of 229.4 billion won per year is also expected, and establishing an operational management system is a priority task to expand biogas production and use. The Ministry of Environment and the Ministry of Trade, Industry and Energy are also discussing measures to encourage the participation of private companies in the market. Various support measures, such as increasing the renewable energy supply certificate (REC) weighting for power generation using biogas, are being considered, and measures to induce the expansion of private capital investment will also be prepared. In conclusion, the Biogas Act advances Korea’s food waste recycling system one step further and provides an important legal basis for carbon neutrality and sustainable energy transition. It is expected to achieve environmental protection and energy independence simultaneously. Law firm Veat provides professional legal advice based on extensive legal knowledge regarding various legal issues that may arise in the rapidly growing renewable energy market. In particular, Law firm Veat's National Suk-goo Partner Attorney has extensive experience accumulated over many years in the energy and environment industries and demonstrates expertise in renewable energy PF, including the Renewable Energy Act and the Biogas Act. He is also a adjunct professor at the Smart EID Graduate School of Engineering at Chungbuk National University, actively engaging in lectures on renewable energy technology and utilization, as well as serving as a consultant for the Renewable Energy Business Advisory Committee of the Korea Rural Community Corporation, combining theory and practice in related fields. If you need legal advice related to the Biogas Act, environmental industry, or renewable energy PF, please contact Law firm Veat. [Go to] Are there any problems with the preliminary preparation for expanding biogas production - Chungcheong Times (cctimes.kr) Thank you. Law firm Veat
Software development subcontracting agreements: Essential legal regulations
Law firm Veat received a request from Company A ("the client") to review the notice and agreement related to subcontracting transactions, concerning a software development contract. The client was the ordering party for the platform software development and was collaborating with subcontractor B to proceed with the project. However, B had outsourced the development work to subcontractor C, and subsequently, the client directly entrusted additional development work to C without entering into a separate contract for the additional work, and payment was not made. Consequently, C claimed that the client violated the Subcontracting Act due to the breach of the obligation to deliver documents in writing (Subcontracting Act Article 3) and non-payment of subcontracting payment, and prepared for legal action. The client requested legal advice from Law firm Veat to resolve this legal dispute. Subcontracting transactions Subcontracting transactions generally refer to transactions that occur in various industries such as manufacturing, construction, and software development, where the main contractor (usually the ordering party) enters into a contract with a subcontractor to perform a specific task or service, and then entrusts the entire or part of that task to a subcontracting company (subcontractor) (Subcontracting Act Article 1, Paragraph 1). Legal regulations for subcontracting transactions Therefore, the principal and subcontractor involved in the subcontracting transaction must comply with the following legal regulations. 1) Obligation to deliver documents in writing: The ordering party and the subcontractor must deliver the contract details in writing when entering into a subcontracting contract (Subcontracting Act Article 3). 2) Obligation to pay subcontracting payment: The ordering party or the subcontractor must pay appropriate compensation at the right time for the work performed by the subcontractor (Subcontracting Act Article 4, Article 11, etc.). 3) Prohibition of unfair trade practices: The ordering party or the subcontractor must not engage in unfair practices such as unfairly changing the contract or imposing unreasonable conditions on the subcontractor (Subcontracting Act Article 4, etc.) This is an important safeguard to protect the interests of the subcontractor as a subcontracting business, and plays a role in ensuring the transparency and clarity of the contract. Also, to support flexible transaction methods for subcontracting transactions that increase the efficiency of large-scale projects and utilize expertise in each field, it is essential to comply with relevant laws to protect the rights of subcontractors and maintain a fair trade order. Law firm Veat thoroughly reviewed the obligation to deliver documents in writing and the obligation to pay subcontracting payment under the Subcontracting Act. They discovered that the contractual obligation for the client to entrust additional development work to C was not clearly organized in writing, and drafted a proper agreement to supplement this. They also provided legal interpretation based on relevant legislation regarding the client’s issue of non-payment of subcontracting payment, and recommended prompt payment. Based on abundant experience in software development contracts and subcontracting transactions, they clarified the client’s legal obligations under the Fair Trade Act and the Subcontracting Act, minimized the risk related to non-payment of subcontracting payment, and supported efforts to avoid legal disputes and reach a favorable agreement. Law firm Veat has played a vital role in legal advice related to IT and software. Law firm Veat has Partner Attorneys Baek Seung-cheol, certified by the Korea Bar Association as an IT specialist, and An Il-woon, Partner Attorney, along with backgrounds in engineering fields and practical experience in advanced fields, possess the strength of simultaneously understanding software, artificial intelligence, and other advanced fields’ knowledge and laws. Law firm Veat promises to continue providing optimal legal services to clients in IT and startup legal advice, based on this expertise. Thank you. Law firm Veat
The first step in investment acquisition, preliminary legal due diligence that companies about to secure investment must know.
Law firm Veat received a request from company A, a next-generation artificial intelligence semiconductor company (hereinafter referred to as "the client"), and conducted a preliminary legal due diligence. The client sought out Law firm Veat, specializing in investment and M&A, to proactively identify and prepare for potential legal issues that may arise during future investment rounds. Law firm Veat's investment lawyers objectively assessed the startup's current status through preliminary legal due diligence and presented necessary measures, meticulously analyzing the client's current legal issues and suggesting necessary actions. Importance and Necessity of Preliminary Legal Due Diligence Preliminary legal due diligence (Due Diligence) is a process where investors thoroughly review the legal situation of a target company before a significant business transaction, such as fundraising, mergers and acquisitions (M&A), or joint ventures, to identify risks, and becomes an important decision-making criterion for both investors and the companies receiving investment. While preliminary legal due diligence is not significantly different from the process and methods used by investors conducting due diligence, it is an essential procedure for rapidly growing companies, such as startups. Startups often experience legal issues that are easily overlooked during the process of expanding their business through innovative business models. The advantage of conducting preliminary legal due diligence is that it allows you to resolve any legal shortcomings in advance. This eliminates potential delays that may occur during the investor's due diligence stage, builds trust between investors and allows the process to be more rapid and efficient. From the investor’s perspective, it is necessary to comprehensively confirm whether the company receiving investment is operating legally and whether there is a future legal risk. It may be difficult to make an investment decision if the legal risk is deemed large. At this time,
Voluntarily resigning, would stock options be exercisable?
Law firm Veat received a request from venture company A (hereinafter referred to as the "client") to review the inquiry regarding stock options related to the involuntary resignation of an executive. The stock option grant contract between the client and the affiliated executive stipulated that stock options could not be exercised if the employee served or worked for less than 2 years or if there was an involuntary resignation. Accordingly, Law firm Veat provided a review opinion considering the client and the executive’s stock option contract terms and specific details based on a comprehensive review of Supreme Court precedents, the Venture Business Act, and other related laws. Stock Options, Legal Interpretation of the Commercial Code and Venture Business Act Exercising stock options means the company grants employees the right to purchase a certain quantity of shares at a predetermined price. Stock options serve as a long-term incentive for employees, allowing them to benefit from the company’s stock price increase. It refers to the act of employees actually purchasing the company's shares at the agreed-upon price (exercise price) using this right. Article 340-4 paragraph 1 of the Commercial Code stipulates that employees must serve or work for more than 2 years from the date of the resolution of the general shareholders' meeting to exercise stock options, and there is a Supreme Court ruling that this requirement must also be met in the case of involuntary resignation or retirement. The Supreme Court clarified this in its judgment dated March 4, 2011, in case No. 2010da85027, further emphasizing that stock options are used as a means of compensating for long-term contributions. However, the 「Special Act on Promotion of Venture Businesses」(hereinafter referred to as the "Venture Business Act") has different exception provisions from the Commercial Code. According to Article 16-5 paragraph 1 of the Venture Business Act, if the person who received the stock options dies or resigns or retires due to reasons not attributable to their own responsibility, they can be exempted from the requirement of serving or working for more than 2 years. This provision is also stipulated in Article 11-4 of the Enforcement Decree of the same Act. Therefore, since the Commercial Code and the Venture Business Act have different regulations on stock option exercise requirements, they can have a significant impact on the specificity of the contract between the client and the executive, and the contract terms must sufficiently reflect these differences. Law firm Veat comprehensively analyzed the Commercial Code, the Venture Business Act, and related precedents from the Supreme Court and High Courts in the client’s complex situation and presented the optimal solution tailored to the client’s situation. In particular, it paid attention to the differences between the Commercial Code and the Venture Business Act and provided advice to prevent potential legal issues that may arise when operating stock options in the future, assessing whether the client's stock option grant contract was drafted in accordance with the relevant laws. Law firm Veat provides optimal legal advice to clients based on a high understanding of the Commercial Code, the Venture Business Act, and other related laws. We are helping startups and venture companies to proactively resolve various legal issues so they can operate stably. If you need legal advice related to stock options, the Commercial Code, and the Venture Business Act, please contact Law firm Veat. Thank you. Law firm Veat
Renewable energy lawyer delivers "".
Recently, the enactment of the 「Distributed Energy Activation Special Act」 (abbreviated as the Distributed Energy Act) is expected to drastically expand the nationwide adoption of renewable energy. In this post, we will thoroughly examine the definition of the Renewable Energy Act, the main contents of the 「Distributed Energy Activation Special Act」, and its expected effects. Definition of the Renewable Energy Act and Advantages of Renewable Energy The formal name of the law commonly referred to as the 「Renewable Energy Act」 is the 「Act on the Promotion of Development, Utilization, and Distribution of New and Renewable Energy.」 According to the definition of the 「Renewable Energy Act」, hydrogen energy and fuel cells are included in new energy, and solar and wind power belong to renewable energy. New energy and renewable energy share a commonality in that they produce significantly less or no pollutants and carbon emissions compared to existing fossil fuels. This is a very important element for environmental protection and sustainable development. Renewable energy generation also has the advantage of not requiring fuel costs because it utilizes natural forces. The government has recently announced a strategy to expand renewable energy adoption and strengthen supply chains to expand renewable energy generation. The goal of this strategy is to distribute 6GW of renewable energy generation facilities annually by 2030. However, the adoption record of renewable energy over the past 23 years has been around 34GW per year, which falls short of the goal. What factors hinder the adoption of renewable energy? The lack of transmission and distribution infrastructure is one reason why renewable energy generation is progressing slower than the target. In our country, a large-scale centralized power plant system requires the construction of a large transmission and distribution infrastructure to send electricity to demand locations far away. This leads to problems such as various complaints and environmental issues surrounding the construction of transmission lines, as well as significant social and economic costs, causing delays in site selection and construction. The government and Korea Electric Power are continuously working to expand transmission and distribution infrastructure, but because expanding social infrastructure requires a long time and cost, it is difficult to resolve the shortage of transmission and distribution infrastructure in the short term. Definition and Role of the 「Distributed Energy Activation Special Act」 The Distributed Energy Act was enacted in June 2023 and came into effect on June 14, 2024, and was enacted to activate energy production and consumption within regions. This law, which is expected to be a major breakthrough for the stalled domestic renewable energy adoption record due to a lack of transmission and distribution infrastructure, aims to establish a system in which power consumers near energy production sites produce, supply, and consume energy through new energy power plants, energy storage systems (ESS), demand response resources (DR), and private power generation. The existing large-scale power generation system produces electricity centrally and sends it to each region through transmission and distribution facilities. This system has problems such as low public acceptance, regional supply-demand imbalances, and energy loss during the supply process, as well as the cost of constructing and maintaining transmission and distribution facilities. Distributed energy systems have emerged as a solution to these problems. A distributed energy system refers to a regional energy system that produces energy needed in each region. Through this system, each region can independently produce and consume energy, supplementing the shortcomings of a centralized system. Expected Effects of the Implementation of the Distributed Energy Act The following expected effects are expected with the implementation of the Distributed Energy Act: Reduced power loss: Energy loss can be minimized by reducing long-distance transmission and distribution processes. Reduced social conflict: Complaints and environmental issues surrounding the construction of transmission lines can be reduced. Improved energy independence: Local governments and residents can reduce electricity bills through high energy independence. Expanded opportunities for industry: Opportunities for businesses related to flexibility resources such as energy storage systems (ESS), demand response resources (DR), and virtual power plants (VPP) will be expanded along with renewable energy generation. Achieving carbon neutrality: The active use of new energy resources such as solar, wind, fuel cells, biogas, and hydrogen will contribute to achieving carbon neutrality goals. Alignment with RE100 Initiative: It lays the groundwork for companies to expand the use of renewable energy. The Distributed Energy Act aims to establish a system in which power consumers near energy production sites produce, supply, and consume energy through new energy power plants, energy storage systems (ESS), and demand response resources (DR). If these distributed energy sources are built near consumers and supply power, the construction of additional renewable energy power plants can be accelerated without constructing long-distance transmission lines. The government’s conciliatory policy to prevent initial confusion in the implementation of the law is understandable, but we hope that the scope and targets of the law will be expanded to be in line with its original intent. Improvements to the Enforcement Decree and Regulations of Distributed Energy
SAFT agreement for token issuance, core legal advisory from Law firm Veat.
Law firm Veat drafted SAFT (Simple Agreement for Future Tokens) contracts and amendment contracts on behalf of overseas virtual asset issuance (ICO) companies. SAFT contracts are mainly contracts necessary for allocating tokens to early investors in the virtual asset issuance process. The contract, which proceeds in the form of conditionally promising tokens to be issued in the future, presents the potential for growth of the virtual asset project to investors and provides a stable legal foundation. In particular, Law firm Veat's virtual asset team
Digital Age Personal Information Protection, Law firm Veat Personal Information Protection Team’s Response Solutions
In the digital age, personal information protection is essential for a company's success and building trust. Law firm Veat’s Personal Information Protection team has successfully performed over 1,054 cases of personal information consultation from 2019 to 2023, and has provided leading legal services in the personal information protection field, particularly by handling over 642 cases of personal information leakage response and incident processing from 2020 to 2023. Veat’s Personal Information Protection team performs personal information protection consultation and system setup consulting to ensure compliance with personal information-related laws and regulations, and supports clients in minimizing the risk of personal information leakage. Furthermore, it provides comprehensive advice on various legal issues, including drafting essential documents such as personal information collection consent forms and personal information processing policies, responding to on-site inspections by regulatory authorities, and crisis management for breaches and leaks.