Startup idea theft controversy, why does it endlessly repeat?_Outstanding interview with Attorney An Il-un Law firm Veat

Recently, disputes related to 'idea theft,' 'technology theft,' and 'trade secret leakage' have been frequently occurring in the startup industry, creating tension throughout the entire startup ecosystem. In particular, cases like 'extracting ideas under the guise of collaboration and then launching a similar service' are stories that everyone in the industry has likely heard at least once. Recently, an AI startup raised an issue with a major corporation after discussions about collaboration, claiming that an idea was used to launch a separate, similar service, once again garnering the industry's attention.

An Il-un, partner attorney at Law firm Veat, analyzed through a column in the IT specialized media 'Outstanding,' why idea theft and trade secret leakage, which repeatedly occur in the startup ecosystem, are difficult to resolve from an institutional and practical perspective, based on the cases of startup idea theft disputes that have recently caused controversy.

NDA, even major corporations are no exception.
Many startups request the signing of an NDA (Non-Disclosure Agreement) during initial meetings with major corporations, but there are also cases where the corporation does not want to sign it. If you share ideas or strategies without an NDA, it will be very difficult to take legal action if a similar service is launched later. It is important to remember that an NDA should always be requested before any collaboration discussions, regardless of the company's size.

Major corporations often avoid NDAs due to the complexity of their internal approval processes and the nature of organizations that try to avoid contractual obligations as much as possible.
An Il-un, partner attorney_ ‘Startup Idea Theft Controversy, Why Does It Repeat Endlessly?’ Interview excerpt

‘Mobile UI/UX Similarity,’ Why It’s Difficult to Receive Protection
One of the main points of contention in this controversy was the similarity of UI/UX, which is inevitable when implementing functions within a limited screen, such as a mobile app. However, it is not easy to receive legal protection solely based on the fact that the UI/UX appears similar, and it can also be difficult to prove creativity and originality.

It is difficult to meet the conditions for legally protecting UI/UX designs because the ways in which it can be expressed are limited in a limited space.
An Il-un, partner attorney_ ‘Startup Idea Theft Controversy, Why Does It Repeat Endlessly?’ Interview excerpt

Planning Documents and Proposals are Also Protected.
A startup’s major assets are not only patents but also planning documents, proposals, and internal design documents. Leakage of these documents can lead to significant damage, but many startups overlook the need for legal protection. These documents must also be protected from the writing and management stages to be recognized as 'trade secrets.' For example, it is important to establish a basic management system, such as marking documents as confidential and restricting access permissions.

There is a common awareness that patents are protected, but there is often a lack of thought that planning documents and proposals should be protected as intellectual property.
An Il-un, partner attorney_ ‘Startup Idea Theft Controversy, Why Does It Repeat Endlessly?’ Interview excerpt

The positions of both parties involved in the actual case that caused this controversy are detailed in the Outstanding article. It’s a realistic look at how startups can get caught up in disputes, so those interested should read the full article through the link below.
- View Outstanding article

Law firm Veat specializes in IT and startups, providing comprehensive legal services from initial idea protection to M&A, investment contracts, collaboration contracts, and dispute response. In particular, we provide legal advice on drafting and reviewing NDAs (Non-Disclosure Agreements), responding to startup technology theft and idea theft disputes, and UI/UX design copyright and trade secrets.

Idea theft is not only a moral issue but also a legal issue that seriously affects the existence of a startup. Especially these days when collaboration discussions are frequent, startups may find themselves unable to respond even if they suffer losses if they do not prepare sufficient protection beforehand. Law firm Veat is a legal partner growing alongside startups, providing the best solutions based on expertise and responsibility, and partner attorney An Il-un is an IT specialist certified by the Korea Bar Association and provides professional legal advice based on a deep understanding of the IT ecosystem. If you need idea protection, NDA advice, or legal advice on collaboration contracts, please contact Law firm Veat.

Thank you.
Law firm Veat

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