Case Studies
Minimizing risk in game industry asset transfer contracts, Legal advisory services from Law firm Veat
Law firm Veat provided due diligence (DD) and legal advice to overseas game developers and operators in the process of acquiring games from domestic game companies. The Veat game team emphasized that accurately understanding the legal status of the target game and eliminating potential legal risks in post-acquisition business operations is critical in game acquisitions, therefore conducting thorough reviews through game due diligence. Furthermore, Law firm Veat clearly defined the scope of the transfer in the contract and structured the contract details to prevent potential legal risks after the contract is signed. In particular, provided specific advice on potential changes to the business model after the transfer contract or the validity of existing contracts. This transfer contract was particularly supported by the Veat game team's meticulous analysis of legal issues before and after the transfer, drafting Korean and English contracts to allow the client to operate games stably in domestic and international legal environments. What points should be checked for game acquisition? Law firm Veat provides specialized legal advice for the IT and game industries. We have cooperated with numerous game companies to provide legal advice not only for game acquisition agreements but also for publishing agreements, shareholder agreements, copyright and trademark disputes, and other legal matters to game industry clients. In particular, Veat has extensive experience in various game fields, such as in-game content copyright, game music, and game items, and has successfully handled litigation for detailed legal issues. The game industry is rapidly changing, and accordingly, legal risks are also diverse. We recommend that you have a game lawyer review the legal aspects in advance through Veat to block these risks and ensure stable business operations. If you need legal advice on game acquisition and game due diligence, please contact Law firm Veat. Thank you. Law firm Veat
Location-based service business closure procedure legal guide
Law firm Veat received a request from Company A, which provides location-based service business, (hereinafter “the client”) to conduct legal procedures related to the termination of the location-based service business, either in whole or in part. The client requested consultation regarding the procedures and preparation of necessary documents for termination of the location-based service business, including reporting to the Broadcasting and Communications Commission. A location-based service business is a business that collects, uses, and provides location information of users to provide various services. It utilizes real-time or past location data collected from smartphones or GPS devices to provide customized information or services to users. Due to the special nature of the location-based service business, termination must strictly comply with legal requirements and undergo careful procedures according to the Act on the Protection and Use of Location Information (hereinafter “the Location Information Act”). Legal procedures for termination of a location-based service business 1) Reporting termination of the location-based service business to the Broadcasting and Communications Commission Reporting termination to the Broadcasting and Communications Commission is a mandatory procedure according to the Act on the Protection and Use of Location Information (hereinafter “the Location Information Act”). It is a process of clearly notifying that the business will no longer collect, use, or provide location information. It is an important measure to prevent the risk of inappropriate use or abuse of location information even after the business ends. 2) Submission of documents to the Broadcasting and Communications Commission Specific documents necessary for reporting termination of a location-based service business must be submitted to the Broadcasting and Communications Commission. These documents should include the reason for termination, the termination date of the business, and the method of handling the location information held. This is to verify that the business operator has fulfilled their legal obligations and to clarify the procedure for safely handling data related to location information, which is a necessary measure to prevent leakage or improper use of location information. The Broadcasting and Communications Commission will review the submitted documents to check whether the termination procedures have been carried out legally and may request supplementation if necessary. 3) Organizing internal company documents When terminating the business, the company must also carefully review and organize internal regulations and documents, including the articles of incorporation, certificate of corporate status, and business registration, to complete legal and administrative procedures. Amending the articles of incorporation or reporting the closure of the business registration is essential to prevent potential administrative sanctions, such as fines. The termination process for a location-based service business must be carried out in accordance with systematic legal procedures. Law firm Veat has advised the client on all legal procedures, including reporting termination of the client's location-based service business, submitting documents, and organizing internal documents, to minimize the client's legal risks and discuss ways to terminate the business smoothly. Law firm Veat is a partner accompanying the business from the beginning to the end and is doing its best to support you. If you are planning to terminate a business such as a location-based service business, please receive assistance from Law firm Veat to complete the process safely. Thank you. Law firm Veat
Software development contract liability non-existence confirmation lawsuit, victory through Law firm Veat’s strategy.
Law firm Veat represented IT service company A (hereinafter referred to as "Client") and won a lawsuit confirming the non-existence of obligations under a software development contract. The plaintiff in the case filed a lawsuit against the Client, alleging that there was no obligation under the software development contract. The plaintiff argued that the Client had failed to pay the agreed amount at the time specified in the contract and that the termination of the contract in this case was solely due to the Client's fault. In response, Law firm Veat actively argued that the contract was terminated due to the plaintiff's failure to perform obligations and that the plaintiff was obligated to return the contract money to the Client.
When drafting subscription service contracts, key compliance requirements (Terms and Conditions Act, Door-to-Door Sales Act).
Law firm Veat accepted a commission from Company A (hereinafter "the client"), which operates an online learning platform, to draft an annual service subscription agreement for the IT solution product provided by the client. The annual subscription service agreement defines the relationship between the service provider and the client, clarifies the rights and obligations arising from service use, and serves as a basis for resolving disputes if they arise. Therefore, when drafting an annual subscription service agreement, it must be carefully drafted in compliance with relevant laws to protect the interests of all stakeholders. In particular, in the case of subscription services, problems may arise due to the user's fault during service provision, so the rights and obligations between the service provider and the user must be clearly defined. Law firm Veat drafted a disclaimer provision to protect the client by complying with the laws related to annual subscription services and clearly stating all liabilities arising from the user's illegal or negligent use. Key compliance items when drafting an annual subscription service agreement All provisions of the annual subscription agreement must comply with the Act on Regulation of Standard Contract Terms (hereinafter "the Standard Contract Act"). The Standard Contract Act stipulates that standard contract terms provided by a business must be composed of fair and reasonable terms, and failure to comply with this may invalidate the contract. Therefore, complying with the regulations under the Standard Contract Act is an important element for minimizing a business’s legal risk and protects consumers from unfair contract terms. The Mail-Order Business Act is a law that strengthens consumer protection for sales made under certain conditions, and in the case of an annual subscription agreement, consumers must be guaranteed the right to cancel the contract within a certain period after signing the contract. Reflecting these legal requirements, clear provisions regarding payment and refunds must be drafted in the annual subscription service agreement. The annual subscription service agreement must be drafted carefully, taking into account the Standard Contract Act and the Mail-Order Business Act, as well as examining relevant provisions, and also include generally important legal protection provisions. Law firm Veat drafted it including not only the provisions related to the Standard Contract Act and the Mail-Order Business Act, but also other general provisions such as damages, termination and cancellation, and confidentiality. Also, by drafting the contract to clearly define the rights and obligations of the service provider and the user in compliance with the Standard Contract Act and the Mail-Order Business Act, the client is protected from legal disputes, and at the same time, the service user can make a rational choice based on sufficient information and maintain trust. It is recommended to have a legal expert review annual subscription service agreements, where various legal issues may arise. Law firm Veat will contribute to the client’s successful business operation by reviewing and drafting contracts that meet various legal requirements and providing legal solutions optimized for service operation. We provide comprehensive legal advice covering various legal issues such as annual subscription service agreements, the Standard Contract Act, and the Mail-Order Business Act, so please feel free to inquire. Thank you. Law firm Veat
Importance of Legal Review for Online Advertising, Law firm Veat Review Cases
Law firm Veat performed legal advice regarding the legality of electronic cigarette online advertisements upon request from client A. Law firm Veat first reviewed whether the electronic cigarette product the client wished to advertise constituted "tobacco" under the Tobacco Business Act. Detailed review was conducted to determine whether the client's product falls within the definition of 'tobacco' as defined by the Tobacco Business Act and whether relevant regulations may apply. Also, the Juvenile Protection Act strictly regulates the advertising and sale of products like electronic cigarettes to protect juveniles from harmful substances. Therefore, Law firm Veat provided legal recommendations to ensure compliance with relevant laws while achieving the client's desired advertising effects. In particular, we provided detailed guidance to ensure that advertising through online platforms and mobile applications is adjusted to meet the conditions stipulated in the law, such as the possibility of access by juveniles and the content of the advertisements, to help minimize legal risks and enable effective marketing. What laws should be reviewed regarding restrictions on tobacco advertising? Advertising of electronic cigarettes is a field subject to various legal regulations. To ensure legitimate advertising, it is necessary to review and comply with various laws, including the Tobacco Business Act, the Act on the Promotion of Public Health, and the Juvenile Protection Act. According to the Tobacco Business Act, tobacco refers to all products manufactured using tobacco leaves as a raw material, and advertising of these products is strictly restricted. Advertising of tobacco is detailed in the Tobacco Business Act and its enforcement ordinance, and may be prohibited if the necessary wording is omitted or not displayed in the prescribed manner. In particular, if an advertisement produced in a foreign country does not meet the standards of the Tobacco Business Act, the Minister of Economy and Finance is authorized to request the Minister of Culture, Sports and Tourism to take corrective action against the importer of the foreign periodical containing the advertisement. The Act on the Promotion of Public Health sets additional regulations on tobacco advertising to protect and promote public health. The Act on the Promotion of Public Health details prohibitions, such as encouraging or inducing smoking among non-smokers, depicting the figures of women or juveniles in tobacco advertising, and may request modification of the advertisement content or prohibit the advertisement itself against those who violate it. Therefore, companies intending to advertise electronic cigarettes should comprehensively comply with these legal regulations, and we recommend that they review the legal aspects with a legal expert before advertising to minimize legal risks and establish effective advertising strategies. Law firm Veat has a deep understanding and expertise in legal issues related to online advertising. We excel at clearly analyzing the legal limitations and regulations that online advertising is subject to and presenting customized legal response plans to clients. Law firm Veat's expertise continues to evolve, and in particular, Song Young Bit, Representative Attorney of Law firm Veat, has been appointed as an arbitrator of the Online Advertising Dispute Settlement Committee, demonstrating his expertise in the legal field related to online advertising. If you need legal advice regarding online advertising, please contact Law firm Veat. Thank you. Sincerely, Law firm Veat
Review of the Securities Nature of Virtual Assets Applied with Blockchain New Technology
Law firm Veat received a request from Company A (hereinafter referred to as "the client"), which operates a decentralized platform based on blockchain technology, to review the securities status of virtual assets issued using zero-knowledge proof technology. Law firm Veat's Virtual Asset Team thoroughly reviewed whether the virtual asset of the project in question qualifies as a financial investment product under the "Act on Capital Markets and Financial Investment Activities" (hereinafter referred to as "the Capital Market Act"), and further, whether it constitutes securities. In particular, the team focused on whether it falls under the definition of a specific investment contract security, and prepared legal review opinions in Korean and English, taking into account the domestic and international legal environment. Law firm Veat's Virtual Asset Team comprehensively analyzed the design and structure, trading method, and investor protection measures of the virtual asset, based on Veat’s unique know-how gained from reviewing various virtual asset cases, and supported the client in preventing legal risks in advance. Necessity of Reviewing Securities Status for New Forms of Blockchain Business and Virtual Asset Trading Zero-knowledge proof (zk-SNARKs), which has emerged along with the recent development of blockchain technology, is a revolutionary technology that is attracting attention for guaranteeing the anonymity of digital assets while maintaining verifiability. Blockchain platforms based on this technology are steadily emerging, leading to new forms of blockchain business and virtual asset trading. However if a virtual asset is deemed a security, it will be subject to the regulations of the Capital Market Act, which has significant legal implications for both the issuer and the investors. Therefore, we recommend that you have these virtual assets reviewed by legal experts with a deep understanding of virtual asset reviews. Law firm Veat specializes in legal advice related to various blockchain businesses, such as blockchain, virtual assets, and NFTs. In particular, Partner Attorney An Il-woon serves as a certified IT specialist attorney by the Korea Bar Association and as a member of the Korea Bar Association Blockchain Special Committee, actively dealing with legal issues related to blockchain technology and virtual assets through advisory and contribution activities. Law firm Veat has numerous legal advisory cases in the blockchain and virtual asset fields, including virtual asset exchange operating policies, ICO and listing processes, and legal review of the securities status of virtual assets, and helps secure the legal stability of clients' businesses through various review cases. If you need legal advice on blockchain businesses, such as the securities status of virtual assets, please contact Law firm Veat.
From securities acquisition report review to report agency, one-stop service!
Law firm Veat received a request from foreign corporation A (hereinafter "Client") to review the necessity of securities acquisition reporting. The Client had acquired shares of a Korean subsidiary without separate reporting and after a considerable period of time, they requested a review to determine whether the past acquisition of shares by the Korean subsidiary was subject to securities acquisition reporting obligations and whether a violation report was currently required. Law firm Veat first ascertained whether the past acquisition of shares by the Korean subsidiary was subject to securities acquisition reporting obligations in accordance with the legal regulations at the time. Furthermore, since a considerable time had passed, they requested a review of the legal requirements and exemption regulations at the time of the share acquisition. Securities acquisition reporting is a procedure that foreign investors must comply with in accordance with the Foreign Exchange Law, Capital Market Law, etc., when acquiring shares of a domestic company. In particular, when a foreign corporation acquires shares of a listed or unlisted company in Korea, it must file a securities acquisition report unless certain requirements are met. However, not all share acquisitions by foreign corporations in Korean subsidiaries are subject to securities acquisition reporting. If certain requirements are met in law, the obligation to file a securities acquisition report may be waived. Law firm Veat thoroughly reviewed the Client's share acquisition case and confirmed that it was an exception that did not require reporting. Through Law firm Veat's professional and accurate advice, the Client was able to avoid spending time and money on unnecessary preparation for a violation report. Procedure after securities acquisition reporting exemption Even if securities acquisition reporting is waived, all procedures are not completed, and a confirmation procedure through a foreign exchange bank must be carried out. The foreign exchange bank reviews the legality of related foreign exchange transactions when a foreign corporation or foreign investor acquires shares and verifies that the movement of funds has been carried out legally to verify whether the transaction meets the legal requirements. After confirmation of reporting exemption, the foreign exchange bank's confirmation procedure is a stage to finalize the securities acquisition reporting exemption and confirm that the acquisition of domestic shares by foreign capital has been carried out legally, and to substantiate the legitimacy of the securities acquisition reporting exemption by submitting required documents, confirming the exemption, and issuing a certificate. Law firm Veat negotiated with the foreign exchange bank to prepare the necessary documents and acted as an agent for the confirmation procedure, providing the Client with one-stop service for the concluding procedures after securities acquisition reporting exemption. When foreign corporations or foreign investors acquire Korean shares, it is essential to seek advice from experts because failure to comply with legal procedures may result in subsequent legal problems and economic disadvantages.
Interview with Ahn Il-woon, Partner Attorney, Law firm Veat, regarding a transaction where NXC purchased company shares from a major shareholder.
Law firm Veat partner lawyer Ahn Il-woon conducted an interview regarding the unusual transaction in which NXC, the parent company of Nexon, repurchased its own shares from a major shareholder. Mr. Yoo Jung-hyun divided the shares of founder Kim Jeong-ju, with 5% for himself, 16% for each of his children, and paid inheritance tax on the remaining 29% stake. As a result, NXC's ownership structure now consists of 34% for Mr. Yoo Jung-hyun and 33% for two children. The inheritance tax amount is so large that the process has not yet been completed. The three heirs have decided to supplement the inheritance tax shortfall through share sales. Surprisingly, the purchaser is NXC. Nexon heir's 66 billion won self-exit...Will there be a breach of fiduciary duty_Outstanding CEO Choi Yong-sik (2024.08.23.) In this interview, partner lawyer Ahn Il-woon explained corporate legal issues from the perspective of a legal expert regarding whether the company met the requirements to acquire its own shares. Please refer to the Outstanding article for the detailed interview content. Outstanding is an IT venture news media that explains technical and business issues that readers may find difficult, such as startups, platforms, content, blockchain, and artificial intelligence, in an easy and fun way. Partner lawyer Ahn Il-woon, a former developer at a large corporation, provides legal advice to various corporations and startups based on his deep understanding of corporate management and mechanisms. He has particular expertise in legal issues related to IT and has been certified as an IT specialist lawyer by the Korea Bar Association. He is also active as an ICT startup legal mentor of the Ministry of Science, ICT, and Future Planning and as a member of the Startup Support Legal Advisory Group of the Ministry of SMEs and Startups. Thank you. Law firm Veat.
Law firm Veat, terms and conditions lawyer, detailed review of prize event terms and conditions.
Law firm Veat reviewed the terms and conditions related to the prize events conducted by a sporting goods brand (hereinafter referred to as "client"). Law firm Veat’s terms and conditions lawyers comprehensively reviewed various elements such as eligibility, prize delivery method, and tax payment processing related to the client’s regular and irregular prize events. In particular, they focused on confirming whether the terms and conditions complied with the "Act on Regulation of Terms of Contract" (hereinafter "Terms Act") and aimed to prevent potential legal issues that may arise when prizes are delivered, and whether the participation conditions and prize-related matters complied with the "Terms Act". If the conditions, such as whether a participant must reside in a specific region, have an age restriction, or purchase a specific product, are vaguely defined in a prize event, it may cause consumer confusion. Therefore, Law firm Veat’s terms and conditions lawyers concretized the participation conditions for each event so that participants can clearly understand them and revised the terms accordingly. Also, because clear guidance is necessary when tax procedures arise, the terms and conditions lawyer considered potential tax processing issues when prizes are delivered in the client's event, and specified the tax payment burden subject and the handling of unreceived prizes in the terms. In particular, Law firm Veat’s terms and conditions lawyers clarified the legal responsibility for the entire event, revised the terms and conditions to be fair to consumers and not disadvantageous, and presented terms that both satisfied the client and the consumer.
Copyright and neighboring rights protection review of vocal contract.
Law firm Veat received a request to review a singing contract from A, a record producer (hereinafter referred to as "the client"). The client requested a review of a singing contract with the content of distributing a portion of the music sales to the client after distributing the already produced music to domestic and foreign music sites, in exchange for the singer's singing. Law firm Veat focused on reviewing a contract to ensure that the singer's neighboring rights and the record producer's neighboring rights, and the original composer's copyright do not conflict with each other, and that the singer’s rights are sufficiently protected while allowing the record producer to smoothly distribute the music. Copyright and neighboring rights in a singing contract Copyright is the right of the creator of a creative work such as literature, music, art, and software. This right protects the creator’s right when the work is used by means of replication, distribution, performance, exhibition, broadcast, etc. Neighboring rights are rights granted to those who do not directly create a work but play an important role in the dissemination and utilization of the work, such as performers, record producers, and broadcasting companies. This right protects the rights generated through the performance, recording, and broadcast of the work. A singing contract is a contract that clearly defines the rights and obligations between a record producer and a singer, helping both sides realize mutual benefits. Key provisions include the distribution ratio of music sales, the scope of the singer’s rights, and the record producer’s distribution rights. For example, a provision is needed to clearly define how to divide the profits generated by the song sung by the singer between the record producer and the singer. Furthermore, various risk clauses are needed to prevent potential conflicts between copyright and neighboring rights in the contract. For example, a clear provision should be included on how the record producer and the singer will jointly respond if a third party claims copyright infringement on the song sung by the singer. Through these provisions, it is necessary to prepare for unexpected legal disputes and protect the rights of both parties. We recommend professional legal advice for drafting and reviewing singing contracts, clearly organizing complex contract clauses including the singer’s neighboring rights and the record producer’s rights, and protecting the rights of both parties and ensuring fair profit distribution. Law firm Veat anticipated copyright and neighboring rights-related legal issues in advance, prepared provisions to resolve them, minimized the record producer’s legal risk, and provided customized advice to enable smooth music distribution and profit creation. Law firm Veat TIP team is led by Oh Seungjong, a former chairman of the Korean Copyright Committee, Chief Counsel Choi Seongho, who has been selected as a 'Leading Lawyer' in the Legal Times TMT field, Ann Ilhoon, a practicing attorney who is actively involved as a specialist of the Korean Copyright Committee, and Jeon Yonghwan, an attorney with extensive experience in ICT regulatory sandbox and proof-of-concept service legislation consulting, and others. They have extensive experience and expertise in intellectual property and related legal advice fields, including the Unfair Competition Prevention Act. If you have any questions related to copyright or neighboring rights, please feel free to contact Law firm Veat. Thank you. Law firm Veat