"Legal Review of Restrictions on Small and Medium-sized Enterprises’ Software Participation Due to Large Enterprise Investment under the 「Software Promotion Act」"

Law firm Veat received a request for legal advice from a small and medium-sized enterprise software business owner A (hereinafter referred to as "the client") regarding the permissibility of participating in a software business due to investment from a large corporation.

The Law firm Veat startup advisory team thoroughly reviewed the scope of a large corporation software business owner under the "Software Promotion Act" and the status of a small and medium-sized enterprise according to the "Small and Medium-sized Enterprise Basic Act."In particular, they thoroughly reviewed the possibility of losing the status of a small and medium-sized enterprise if a large corporation invests in the client and acquires a certain portion of ownership directly or indirectly, and comprehensively reviewed whether it could participate in state-funded software projects.

Need to review the restriction of participation by a large corporation software business owner under the "Software Promotion Act"

Restrictions on business participation under the "Software Promotion Act" can act as an important legal issue for small and medium-sized enterprises, and if you are considering participation in state-funded software projects, you should pay attention to the statutory restrictions.

Therefore, we recommend that you receive a thorough review of the "Software Promotion Act" by an IT lawyer with professional understanding of the content and standards for small and medium-sized enterprise software businesses and abundant experience in related legal advice.

Law firm Veat has IT-specialized lawyers who simultaneously understand the 'IT' and 'legal' fields, and is clearly interpreting the IT-related legal system, which deals with technical characteristics and legal regulations in a complex manner, and providing appropriate solutions for the case.

Furthermore, IT Law firm Veat provides services for regular legal review and advice to help small and medium-sized enterprises continuously respond to the rapidly changing legal environment, helping clients to anticipate legal risks and operate their businesses safely.

Thank you.

Law firm Veat