Case Studies
[Consultation] Measures for civil and criminal response regarding former executives of the same industry.
IT service company A received news that former executive B transferred to competitor C within the same industry. Accordingly, they inquired about potential legal responses in civil and criminal matters. Veat consulted with former executive B and A regarding whether they had previously entered into a ▲transfer restriction agreement with C, ▲whether there was a violation of the Competition Act, and ▲the possibility of seeking an injunction (including a provisional injunction), and ▲the possibility of a provisional injunction, and ▲whether there was a crime of abuse of position in commercial transactions under the Criminal Code, along with ▲digital forensic methods to prove the circumstances. A transfer restriction agreement or a restraint of competition agreement is an agreement in which an employee agrees not to engage in competitive activities, such as employment with a company in a competitive relationship after retirement. In particular, if a former employee with a transfer restriction agreement resigns and joins a company in the same industry, it can be regulated solely based on the breach of contract without proving whether the employee has violated a trade secret. However, even in the case of a transfer restriction agreement, if it excessively restricts the employee's right to choose a profession or restricts competition excessively, it is invalid. Therefore, it is necessary to draft it while reflecting the interests of both the employer and the employee, considering various legal provisions. Law firm Veat provides effective legal advice to prevent such disputes based on its experience in handling numerous transfer restriction, restraint of competition, and trade secret protection disputes. If you need legal advice related to transfer restriction, restraint of competition, trade secret protection, and digital forensic, please contact us at here.
[Consultation] Review of copyright infringement and game similarity related to mobile games.
Law firm Veat conducted a review regarding mobile game copyright infringement and game similarity issues. A, a mobile game developer, contacted us worried about issues such as “copyright infringement due to prior game works and similarity” before launching its mobile game in the market and releasing it. Therefore, Veat analyzed the contents of the game A was planning to produce and prior game works, and comprehensively reviewed ▲ “Copyright Act” and ▲ judgments regarding the actual similarity between game works, etc. During this process, we focused on reviewing the actual similarity of the basic game rules themselves, various elements combined organically to implement game, and the actual similarity of the game itself. Initially, the court took the position that if the game rules were created by reflecting elements used in previously created games, it would be considered creative and would not recognize copyrightability, but it would focus on comparing the expression of detailed components such as characters and interfaces to determine the actual similarity and copyright infringement between game works. However, recently the Supreme Court ruled that even if the creativity of the game rules themselves is not recognized in mobile games, if the detailed components are selected and combined organically to create a game, the actual similarity would be recognized if the game itself is similar, showing a forward-looking attitude by slightly expanding the protection scope of game works (Supreme Court Decision of June 27, 2017, No. 2017da212095). As this precedent, which has presented the main criteria for judgment in copyright infringement cases regarding game works, is also significantly influencing the production of game works and related copyright infringement issues. Law firm Veat provides solutions that are appropriate for “Copyright Act” and related precedents and trends based on our experience in resolving numerous copyright infringement disputes and providing legal advice to game startups and companies. If you need legal review regarding mobile games and legal advice related to copyright, please feel free to contact us at Contact Us. Thank you.
[Yonhap News] Korea Business Council-Gyeonggi Province Sign Agreement on Revealing and Supporting Corporate Regulations
Agreement concluded for work regarding the uncovering · support of Gyeonggi-do’s corporate regulations On the 8th, Gyeonggi-do Governor Lee Jae-myung announced that he would provide maximum support so that companies could find new paths through the regulatory sandbox (temporary exemption · postponement of regulations) Veat Law Firm’s Partner Attorney Song-yeong was present at the signing of this agreement as a Gyeonggi-do regulatory sandbox consultant. Veat Law Firm is receiving praise from companies struggling to write applications because it is providing consulting from business model explanations to related regulation analysis, encompassing the entire application writing process in order to activate the regulatory sandbox system. Article related to Gyeonggi-do’s corporate regulation uncovering · support work agreement Thank you.
[Veat’s Startup Legal Walk] SAFE Investment Introduction
Calculating the value of early-stage startups is a very difficult task. Early-stage startups have no revenue, no assets, no factories, and no real estate. There are only 2 to 3 founders, and they have good ideas and technology, but it's impossible to predict how much value these ideas will have later on. SAFE is a type of investment that ‘delays’ valuation assessment of such companies. SAFE investors initially supply funds to the company and then receive a ‘formal investment’ with valuation once the company receives equity later. Do you have more questions? Please check out Senior Partner Attorney An Il-won’s column on the introduction of SAFE investment! Thank you. Veat
[Consultation] How to prevent reselling through the Terms of Use?]
Veat provides legal counsel regarding the “reselling” activity of specific members purchasing goods in bulk and reselling them. A, which operates an online wellness mall, inquired about whether it could modify its terms of service to regulate the act of specific members purchasing goods in bulk and reselling them. In substance, reselling products purchased by oneself is not illegal under the current law, unless it involves selling overseas direct-purchased goods. However, if this “reselling” activity hinders sales agreements with other buyers and causes the initial purpose of the company to engage in distribution activities, it constitutes an act that unfairly distorts trading order, and in this case, it is possible to regulate it through the terms of service. However, it is necessary to clearly establish criteria for bulk purchases and repeat purchases to ensure that ▲customers can reasonably anticipate ▲adjust the overall content of the contract fairly to avoid being classified as unfair contract terms. If it falls under Act on the Regulation of Fairness in Contracting, it is not only void but can receive a corrective order and recommendation for correction from the Fair Trade Commission, and if it fails to comply, it can be sentenced to imprisonment for up to 2 years or a fine of up to 1 billion won. Some argue that reselling is a means of investment, while others point out the speculative nature of reselling and advocate for regulation. In overseas countries, while acknowledging reselling activities, sanctions are being implemented against reselling that infringes on consumer rights. Law Firm Veat identifies the business model of the business and provides draft and review services for terms of service specifically tailored to the service. Those with inquiries are welcome to contact us at any time. Thank you.
[Consultation] Legal review of development costs related to software development contracts.
Law firm Veat reviews software development agreements to process payments for development costs and provides legal advice. Veat also reviewed the following items in the software development agreement: 1) ownership and usage rights of new development products resulting from the developer's existing development products and this contract, 2) timing and payment criteria for payment of development costs, and 3) regulations regarding payment and return of development costs in the event of a mid-term cancellation of a software development agreement. When drafting a software development agreement, it is important to clearly specify the definition of deliverables and regulations regarding payment and return of development costs in the contract. If the specific contents, which have been sufficiently agreed upon between the parties, are not recorded, there may be a difference in understanding between the parties, which could lead to disputes in the future. Regarding software development agreements, it is important to ensure that the provisions of each clause are notinterpreted differently from the intended meaning and that the agreed-upon contents are well reflected in the contract. We recommend that you obtain the opinion of an IT specialized attorney before finalizing the agreement. Law firm Veat is a specialized law firm for IT, composed of IT specialized attorneys selected by the Bar Association and engineers. We provide professional legal advice based on a basic understanding of IT software. Please contact us if you need legal advice related to these matters. Thank you.
[Investment] What is a SAFE investment that skips the valuation process?
What is the biggest goal for early startups? It’s to gain recognition for our business model and quickly raise investment to expand the business. In the early stages of a startup, there’s often a lack of clear validation for the business model, and it’s difficult to materialize revenue or other metrics, which makes valuation (determining company value) the biggest discrepancy between startup and investor opinions and the most time-consuming stage. Investment without valuation? What if there was a way to skip the valuation process and get investment upfront? So, if a startup with potential could receive quick investment and then determine its equity stake based on subsequent investment valuations, it would be what both startups and investors desire. Considering these points, we’d like to introduce the Simple Agreement for Future Equity (SAFE), which is designed to do just that. What is a Simple Agreement for Future Equity? The Simple Agreement for Future Equity (SAFE) is a venture capital structure initially conceived in Silicon Valley and now widely used. It’s designed for early-stage startups with difficulty determining company value and allows subsequent investors to determine the startup’s equity stake based on their valuation in later investments. That’s why it’s particularly useful for early startups, allowing for quick and simple investment, preventing excessive dilution of the founder’s equity, and avoiding valuation-related disputes. It also provides benefits for the company, such as reducing initial company valuation analysis costs and lowering the risk of overvaluation. Recently, in line with global standards, the “Act on Venture Investment Promotion” (Venture Investment Promotion Act) and the “Act on Promotion of Venture Companies” (Venture Company Promotion Act) have been implemented in Korea, and financial institutions are also launching financial products based on the SAFE structure. Law Firm Veat possesses expertise through its experience reviewing SAFE agreements and providing legal advice related to SAFE investments. Please refer to this here for relevant case studies, and please don’t hesitate to contact us.
[Investchosun] [Large Corporate CVC Approval] Law Firms Predict Fierce Competition While Handling Large Corporate CVC Assignments
Startups aiming for the initial investment segment are also trying to make their presence known. While large-scale deals are taken by major law firms, there’s a sentiment that early investment advisory benefits are worth pursuing. Leading startups-focused law firms include Seum, Mast, Veat, Delight, and Choi & An Law Firm. There are firms that claim to be specializing in ICT and consist only of lawyers who graduated from engineering schools, as well as those that boast the lowest hourly rates and publicly disclose fees on their websites. For more detailed information, please refer to Law Firms, Predict Fierce Competition Behind Corporate Venture Capital Deals. Thank you.
[Hankook Job & Joy] Large Company Recruitment Market "Quiet" in the Off-Season… "Rush" to Startups Begins
What to pay attention to when joining a startup? Some startups have unclear salary and employment systems. The most widely used system by startups is the internship program. This allows for employment to be rejected based on performance during a 3-month period. In addition, it is possible to reduce the salary during this period. However, employees with contracts lasting less than one year cannot have their salary reduced even within the 3-month internship period. Experts say that to be legally protected, startup joining applicants need an employment contract. Jo Eun Byeol, a lawyer at Veat Law Firm, said, “From the perspective of a job seeker, the best way is to make separate agreements with the employer,” and “It is good to add clauses such as ‘it is necessary to have a legitimate reason if the period of use cannot be extended’ or ‘it is impossible to dismiss for an unjustified reason’ to a separate contract.” Employment contracts that clearly specify the internship period also have a positive effect on companies. Ms. Jo said, “In the event that an employee resigns voluntarily, startups can also receive unfavorable treatment, such as the interruption of government subsidies, so it is possible for companies to be legally protected if there are specific clauses regarding dismissal.” For more details, please refer to the article “[The Korea Economic Daily Job & Joy] Large Company Recruitment Market ‘Quiet’ Hemi… Startups to Begin ‘Rush’” at [http://www.jobnjoy.com/portal/job/special_view.jsp?nidx=418253&depth1=1&depth2=3&depth3=1] Thank you.
[LawTalk News] ‘Japanese Photo Album Re-released’ Controversy ⋯Hyun Bin’s direct raising of the issue of personal rights would only result in a compensation of approximately 10 million won.
With the consent of actor Hyun-bin not obtained, a photo book titled ‘Marine Corps Photo Book’ is scheduled to be published in Japan. Hyun-bin’s agency immediately protested. “Publishing without the consent of the actor and their agency,” they stated, “we will take legal action.” In fact, Hyun-bin’s agency was excluded from the actual publishing contract. Domestic publisher Planet Media stated, “This photo book is about ‘Marine Corps Hyun-bin,’ not actor Hyun-bin,” and “has no connection to Hyun-bin’s agency.” They argued. At the time, Hyun-bin was serving his military service in the Marine Corps, so the issue of his rights, including his privacy, should be discussed with the Marine Corps rather than his agency. However, the lawyers stated, “That’s an unfounded claim.” They said, “Even if he was serving his military service, Hyun-bin’s inherent rights do not belong to the state,” and “Hyun-bin’s side can respond to unauthorized publication in two ways.” Veat Law Firm Senior Partner Attorney An Il-won explained the issue of Hyun-bin’s ‘Marine Corps Photo Book’ publication, as seen in the article. Thank you. Veat Law Firm.