Case Studies
[Law firm Veat TIP] Figure skating is a dramatic work? Copyrightability of sports movements
Law firm Veat TIP team (Technology Intellectual Property), with extensive experience in reviewing copyrighted works, contributed a detailed analysis of the copyrightability of sports movements to the startup media platform Platum. Traditional dance has been recognized for its creativity and has been recognized as copyrighted works. However, sports competitions have little room for creativity, so one might wonder if they can be considered copyrighted works. In this column, we have detailedly explained whether sports movements can be recognized as dramatic works and what copyright protection they can receive. [This link] allows you to view this column. This column written by Law firm Veat TIP team provided useful information that will benefit artists who create or perform dance, choreography, and performance art, as well as trainers and influencers who create content by filming sports movements. Whether works with artistry also have originality and can be recognized by copyright and what copyright protection they can receive varies from case to case, so it is advisable to proceed with the help of a legal expert with extensive experience in copyright and related rights to have your rights recognized. Professional legal advice is essential to understand and appropriately respond to complex copyright issues. Law firm Veat's copyright-specialized TIP team provides specialized and extensive legal services in various fields, including video copyrighted works, dramatic copyrighted works, music copyrighted works, and folk content. If you have any copyright-related issues, please receive legal advice from Law firm Veat TIP team to receive accurate legal protection. Thank you. Law firm Veat"
Checkpoints for Successful Startup Management: Review of Written Consent
Law firm Veat performed a written consent review at the request of company A related to blockchain (hereinafter referred to as “the client”). The client needed to obtain written consent from existing investors in the process of the client’s representative establishing an overseas corporation, and sought out Law firm Veat specializing in startups. Law firm Veat's startup advisory team thoroughly reviewed the content and structure of the consent form and clearly stated the subject and scope of consent so that existing investors could clearly understand and consent. In addition to the written consent review, Law firm Veat reviewed the legal risks of various businesses that could arise in the process of promoting new businesses. Specifically, it analyzed from various perspectives whether the promotion of new businesses or major business decisions could violate existing investment contracts, and recommended that the client receive consent in advance if necessary. Through this, the client’s investors were able to clearly understand the purpose of the newly established overseas corporation and its impact and proceed with consent, while maintaining relationships with existing investors while pursuing new businesses, and minimizing potential legal risks. Shareholder Meetings and Written Resolutions Most joint-stock companies make major management decisions through shareholder meetings. A shareholder meeting is a place where shareholders exercise their voting rights on the company’s important matters, playing a very important role in company management. Shareholder meetings are typically decided by a majority rule, and the resolution is only valid when the quorum and voting threshold are met. However, these procedures are designed to be suitable for large and complex companies, so they can be inefficient for small companies or startups with capital less than 1 billion KRW. In these situations, a small joint-stock company can efficiently make decisions through a written resolution method, omitting the shareholder meeting when there is unanimous consent from all shareholders. A written resolution is a method of replacing a shareholder meeting by having shareholders agree to pre-determined agenda items in writing, instead of holding an actual shareholder meeting, which has the advantage of allowing the company's decisions to be made more quickly. However, in order to replace a shareholder meeting resolution through a written resolution, it is necessary to satisfy the legal requirements without missing any details. If this is not done properly, it may be invalid. Therefore, if the written resolution procedure is performed incorrectly or omitted, there may be grounds for future legal disputes, so these procedures must be conducted with advice from a legal professional with experience with startups and companies. Law firm Veat has accumulated extensive experience in legal consultation related to startup growth and investment. In particular, Law firm Veat resolves various legal issues within the startup ecosystem and provides legal support to help startups grow stably. Furthermore, Law firm Veat deeply understands the legal issues within this startup ecosystem and provides regular legal consultation services to help startups grow stably from an early stage. If you need legal advice regarding legal issues that startups are concerned about, such as investment contracts, shareholder consent, and stock options, please contact Law firm Veat for safe growth. Thank you. Sincerely, Law firm Veat
[Law firm Veat TIP] Copyright analysis of theatrical works, legal protection methods for scripts and choreography
Law firm Veat TIP(Technology Intellectual Property) team contributed a detailed explanation about theatrical works to Flatum, a startup-focused media platform. With the development of K-pop, music videos, and YouTube videos, the importance of legal protection for theater, acting, and choreography has significantly increased. This column details how theatrical works are protected and the necessity of copyright protection. [This link] allows you to review this column. The column published by Law firm Veat TIP team provides useful information to artists and choreographers who are curious about whether they can receive copyright protection through creative activities such as scriptwriting, choreography, and acting, and to creators who are curious about whether the acting included in their videos can be protected. Copyright issues related to theatrical works are very diverse and complex, so it is important for creators to understand in detail through legal professionals how their work can be protected, and through this, protect the rights to their creations. Law firm Veat TIP team provides professional legal advice on complex copyright issues and provides legal assistance to creators and those in the arts to effectively protect their works. If you need legal advice on scripts, choreography, acting, and other theatrical works, please contact Law firm Veat. Thank you. Law firm Veat
Blockchain specialized Law firm Veat, Successful consulting cases for virtual asset platforms
Law firm Veat received a request from Company A (hereinafter “the client”) that operates a virtual asset-related business to review the legality and PR agency legal risks of a virtual asset price prediction investment information platform. Veat's virtual asset team thoroughly analyzed the business model of the virtual asset price prediction investment information platform operated overseas. In particular, we reviewed whether there were any parts that violated related laws and regulations, such as the "Act on Reporting and Use of Specific Financial Transaction Information" (hereinafter "Specific Financial Transaction Act"), with a focus on whether the client’s business model was in compliance. Furthermore, when a domestic company engages a PR agency to promote and conduct PR activities for an overseas virtual asset platform through a contract, Veat's virtual asset team must comply with related laws and regulations, such as the "Act on Capital Markets and Securities Investment" (hereinafter "Capital Market Act"), and comprehensively explained guidelines to ensure the client can provide services safely. Although domestic regulations related to virtual assets are not yet clearly defined, Veat interprets them based on experience handling various virtual asset cases, and reviewed the applicability of domestic law to the platform’s business model from various perspectives. Virtual Asset Price Prediction Services and Legal Risks To operate a virtual asset price prediction service legally and safely, it is necessary to comply with related laws and regulations. In particular, the "Act on the Regulation and Punishment of Illegal Activities" (hereinafter "Illegal Activities Regulation Act") deems as illegal activities any act of answering or predicting and betting on questions, and providing economic benefits when the prediction is correct. Therefore, if participants bet on assets in a virtual asset price prediction service, the operator of the virtual asset price prediction platform needs to review whether the service may be deemed an illegal activity and, if necessary, proceed with appropriate legal procedures. The Supreme Court deems as an accomplice and punishes an act of knowing about another’s crime and aiding and abetting it. If the promotional activities involve illegal business, there is a risk that promoting such illegal business will be deemed an aiding act facilitating a crime. To avoid such risks, a PR agency must review in advance whether the business being promoted complies with laws and regulations. Even if a PR agency claims to have entered into a contract only for legal business activities, if the agency knows of the illegality of the activities, it may be recognized as aiding regardless of the contract terms. Virtual asset price prediction and PR agency services involve legal risks, so it is recommended to seek advice from legal professionals with a deep understanding of the Illegal Activities Regulation Act and receive professional legal advice. Legal regulations related to virtual assets are rapidly changing and complex, so accurately understanding legal regulations and adjusting business operations is a key element for stable service operation. Law firm Veat provides differentiated legal services to clients based on extensive experience and deep expertise in the virtual asset and blockchain legal advisory sector. Veat’s partner attorney, An Il-woon, demonstrates remarkable capabilities in the blockchain field and actively engages in advisory and contribution activities regarding various legal issues related to virtual currency and virtual assets. Attorney An Il-woon provides critical legal advice to numerous startups, blockchain platforms, and virtual currency exchanges based on his deep understanding of how blockchain technology is applied and regulated legally. He was appointed as a member of the IT Blockchain Special Committee of the Korea Bar Association in recognition of this expertise. Furthermore, Veat’s senior foreign attorney, Song Woo-suk, served as a senior legal counsel at the virtual asset exchange Binance and is currently active as a legal advisory committee member of the Korea Blockchain Business Cooperative. Based on his experience at an international virtual asset exchange, Attorney Song Woo-suk provides in-depth advice on complex legal issues such as Anti-Money Laundering (AML) and cross-border M&A for numerous domestic and international blockchain projects and virtual asset transactions. If you need legal advice for your virtual asset, virtual asset exchange, or other blockchain business, please contact Law firm Veat. Thank you. Law firm Veat
[202408] Monthly Veat August Issue_Should I Try a Private Investment Association Too?
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Business acquisition, employment succession, and core legal risk management.
Law firm Veat reviewed the business transfer contract for business acquisition by small and medium-sized enterprise A (hereinafter referred to as "the client").
Protecting the company's brand from defamation!
Law firm Veat received a request from Company A (hereinafter referred to as the "client"), which operates wholesale and retail businesses, to review legal remedies regarding a broadcast that defamed its brand. The client believed that its reputation was damaged by a broadcast that compared and defamed it with competitors, and sought out Law firm Veat, specializing in Information and Communications Technology (ICT). Law firm Veat’s IT team conducted a comprehensive legal review to determine whether the broadcast constituted defamation and what legal actions could be taken based on that determination. First, we reviewed violations of the 「Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.」 (hereinafter referred to as the "Information and Communications Network Act"). We performed a careful analysis to determine whether the broadcast met the requirements for defamation, regardless of the truthfulness of its content, and whether it was a public interest report or simply defamation. In addition, we presented additional countermeasures based on the Criminal Procedure Act and the Civil Act. Defamation can not only result in criminal punishment, but also serve as grounds for civil damages claims, so Law firm Veat’s IT team provided various countermeasures and provided specific guidelines and legal basis to execute them efficiently. In particular, in this case, because it was a defamation case via the information and communications network, Law firm Veat’s Information and Communications Attorney considered it important to minimize the online spread of the broadcast and additional damage, and suggested requesting deletion of the broadcast content and taking measures to prevent additional damage. Defamation punishment under the Information and Communications Network Act, plays an important role in the digital age The defamation punishment provision under the Information and Communications Network Act plays an important role in the digital age. Actions that defame or distort facts through the information and communications network to damage another’s reputation can result in serious legal responsibility. Article 1, Paragraph 2, Sub-Article 1 of Article 44-7 of the Information and Communications Network Act prohibits expressing facts or false facts with the purpose of defaming another person. The law has strong punishment regulations to prevent such defamation actions, and regulates the severity of punishment differently depending on whether the information was disseminated or false information was disseminated. 1) In the case of disseminating facts: Even if the information is factual, if it is publicly disseminated with the purpose of damaging another’s reputation, imprisonment of up to 3 years or a fine of up to 30 million won 2) In the case of disseminating false information: imprisonment of up to 7 years, suspension of qualifications for up to 10 years or a fine of up to 50 million won If false information is disseminated, even if the purpose is for public interest, it can be recognized as defamatory, and whether there is a purpose of defamation is distinguished from simple opinions or factual delivery. Therefore, consideration must be given to the content and nature of the fact, the target to which the information was disclosed, and the extent of reputational damage that may result from the information (Supreme Court Decision 2006.8.25. Decision 2006do648) and careful review of each case is necessary. Defamation cases arising through the information and communications network can spread quickly, so companies must quickly prepare legal remedies to protect their brand and reputation. Law firm Veat provides professional advice to protect the client’s rights in disputes related to the Information and Communications Network Act and contributes to resolving defamation issues through experience in reviewing numerous related cases. If you require legal advice regarding the Information and Communications Network Act or other defamation issues, please contact Law firm Veat. Thank you. Law firm Veat
Non-compete litigation Law firm Veat’s strategic response
Law firm Veat received a request from Unicorn company A (hereinafter referred to as "the client") to review legal response to non-compete related litigation. In a case where an employee who transferred from a competitor to the client was sued for damages based on the non-compete clause agreed upon at the time of departure from the competitor, we prepared a legal opinion on response measures. Law firm Veat thoroughly reviewed the validity of the non-compete agreement prior to litigation. We analyzed whether the non-compete agreement could be appropriately applied to the client's specific circumstances, and whether the agreement unduly restricted free competition. A non-compete agreement is an agreement whereby an employee promises not to work for a company in a competitive relationship or to establish and operate a competing business. (Supreme Court Decision of July 16, 2003, 2002 Ma 4380, etc.) Such agreements are used to protect a company’s trade secrets and interests, but at the same time, they can conflict with the employee's constitutional right to freedom of occupation, and not all non-compete agreements are valid. Generally, non-compete agreements are valid, but the Supreme Court's position is that they may be deemed invalid if such agreements unduly restrict the employee’s freedom of occupation and right to work guaranteed by the Constitution, or excessively restrict free competition. Criteria for Judging the Validity of a Non-Compete Agreement ① Interests of the employer that are worthy of protection ② The employee’s former position ③ Period, region, and target industry of the competition restriction ④ Presence or absence of compensation ⑤ Circumstances of departure ⑥ Public interest and other considerations (Reference to Supreme Court Decision of March 11, 2010, 2009 Da 82244). Law firm Veat approached strategically to maximize the client’s interests in the non-compete litigation. First, we conducted a detailed legal review to determine whether the agreement met the Supreme Court's criteria and provided the client with advice that would help them make decisions about litigation. We also reviewed the legality of the non-compete clause and the possibility of claiming damages from the employee who violated it, thereby strengthening the client’s legal protection. Law firm Veat’s thorough pre-review and litigation strategy development played an important role in protecting the client's business interests in important legal issues such as non-compete, and preventing unnecessary legal disputes. Law firm Veat has outstanding capabilities in providing comprehensive and professional legal advice to a wide range of companies, from startups to large corporations. Law firm Veat particularly excels in corporate advisory services, leveraging deep experience and expertise in various areas to meet the client’s legal requirements. Law firm Veat operates a regular legal subscription service to provide professional support as a legal partner to companies, providing regular support to help them minimize legal risks and achieve successful businesses. If you are concerned about a variety of legal issues facing your company, please contact Law firm Veat for information about our regular legal subscription service. Thank you. From Law firm Veat
Venture investment fund overseas investment strategy, smoothly with Law firm Veat’s legal consultation!
Law firm Veat received a request from Private Investment Fund A (hereinafter referred to as "the Client") to review the legal possibilities of overseas investment for private investment funds and venture investment funds. The Client intended to invest in overseas entities using capital. However, due to the regulatory difficulties related to the 「Venture Investment Promotion Act」 (hereinafter "the Venture Investment Act"), they inquired of Law firm Veat, a law firm with extensive experience in legal advice related to private investment fund operation. The investment team of Law firm Veat first reviewed whether private investment funds and venture investment funds could invest overseas. In particular, they focused on whether investment was possible in a foreign parent company, considering the Client's fund usage amount, and explained the legal limits and regulations. The investment team of Law firm Veat analyzed whether the investment method planned by the Client was legally permissible, focusing on the Venture Investment Act. According to the Venture Investment Act, the use of fund assets by a private investment fund for the benefit of itself or a third party is prohibited, and investment is only possible within the limits that do not violate the law, so they reviewed and advised whether the Client's planned investment in an unlisted company met these conditions. They also explained the restrictions on investing in listed companies for the Client. The investment lawyers of Law firm Veat also thoroughly reviewed the possibility of the Client investing in overseas entities. According to the Venture Investment Act, venture investment funds are restricted until three years after registration to conduct business with a certain percentage stipulated in the same Act, such as newly established companies, technology innovation-type and management innovation-type small and medium enterprises in accordance with the Small and Medium Enterprise Basic Act, venture companies, and companies that develop or manufacture businesses with independent accounting and business from other businesses, therefore, they advised that whether a foreign entity is eligible for investment under the Venture Investment Act should be determined, and that if the requirements are not met, there may be restrictions on investment. Investment Requirements for Private Investment Funds and Venture Investment Funds: Legal Considerations When private investment funds and venture investment funds consider overseas investment, they must understand several key requirements in law, such as regulations under the Venture Investment Promotion Act and the Small and Medium Enterprise Basic Act. According to Article 13, Paragraphs 1 and 2 of the Venture Investment Act, a private investment fund is obligated to invest more than 50% of its capital within three years after registration in newly established companies and venture companies. In particular, when a startup planner participates as a GP (general member), investment in an initial startup company must also be fulfilled. Also, newly established companies and venture companies as stipulated in the Venture Enterprise Act are recognized under the Small and Medium Enterprise Basic Act, and when a fund invests in overseas entities, a comprehensive review is necessary, including decisions from the Tax Tribunal. Therefore, please receive assistance from a legal advisor with extensive experience in private investment fund operations to review the requirements of the Venture Investment Act from various perspectives, verify whether the requirements of the Venture Investment Act are met, and whether there are any legal risks when investing in foreign entities, and to minimize legal risks. Law firm Veat provides clear guidance on the legal requirements of the Venture Investment Act and private investment funds related to overseas investment, and provides specific legal advice necessary for investment strategy development. Law firm Veat has supported various reviews based on advisory experience accumulated through reviewing several private investment fund cases, and will provide Veat’s exclusive legal advice related to private investment funds. If you need legal advice regarding the operation of a private investment fund, please contact Law firm Veat. Thank you. Sincerely, Law firm Veat
Flexible investment methods, convertible note foreign exchange transaction reporting cases
Law firm Veat successfully performed foreign exchange transaction reporting related to convertible note (Convertible Note, “conditional equity conversion contract”) investment for a domestic investment combination (hereinafter "client"). Law firm Veat’s foreign exchange reporting center thoroughly reviewed whether the transaction could satisfy existing foreign direct investment regulations, specifically when the client was additionally acquiring a convertible bond for an overseas entity that the client had already partially acquired shares in. Furthermore, foreign direct investment requirements are one of the frequently occurring complex regulations in international transactions. Since legal issues can arise if investment structures and reporting procedures are not properly understood and prepared, Law firm Veat’s foreign exchange reporting center clearly identified the required reporting types and reporting institutions, and proceeded with securities acquisition reporting accordingly. During this advisory process, Law firm Veat’s foreign exchange reporting center paid attention to whether it constituted foreign direct investment if a previous investment existed, and assisted the client in preparing the necessary documents in advance based on the necessary reporting content. What is a Convertible Note (Conditional Equity Conversion Contract)? On December 12, 2023, an amendment to the Venture Investment Promotion Act (hereinafter “Venture Investment Act”), which explicitly stipulated convertible notes as a method of venture investment, came into effect. This amendment formally defines investment methods previously known as Convertible Notes as conditional equity conversion contracts, providing a clearer legal basis for venture investment. Convertible notes are gaining popularity among many venture investors due to their advantages of providing a fast and efficient investment method. Firstly, convertible notes offer the flexibility to postpone the timing of valuation. In contrast to typical equity investments where valuation is essential at the time of investment, convertible notes allow it to be postponed. This allows for faster investment for both investors and companies, and can reduce the time and cost involved in valuation. Secondly, as an advantage, convertible notes are classified as debt, so they do not dilute equity and have a smaller impact on artificially inflating company valuation. This is particularly advantageous for early-stage startups, as equity investments can be associated with additional tax issues due to the increase in company valuation. Finally, convertible notes can flexibly adjust the company valuation instead of evaluating it at a fixed price. This is very advantageous as it leaves open the possibility that the investor's conversion terms may change according to the company's future growth. Specifically, they have the characteristic of being converted into equity at an appropriate time depending on the company's growth rate or external investment situation, providing better opportunities for both investors and companies. Thanks to these advantages, convertible notes are increasingly becoming a preferred investment method for many venture investors. However, it is very important to confirm that the process is carried out in a simple manner, but complies with the requirements stipulated by law and that the contractual conditions are appropriately set. In particular, if there are issues related to foreign exchange transaction reporting, a proper reporting procedure must be accompanied, and we recommend that you receive advice from experienced legal professionals to proceed safely and accurately. Law firm Veat provides swift and accurate legal advice to clients based on its deep legal knowledge and abundant practical experience regarding convertible notes (conditional equity conversion contracts) and foreign exchange transaction reporting. Law firm Veat operates a regular legal subscription service to provide clients with professional support as a legal partner, so that they can minimize legal risks and lead successful businesses. If you need legal advice regarding various foreign exchange reporting issues, including convertible issues, please contact Law firm Veat. Thank you. Law firm Veat