There have been concerns that information technology (IT) founders, such as web and mobile companies, could lose money if they neglect patent management and personal information protection. Jeon Se-joon, a lawyer at Hanbyul Law Firm, said, "In technology startups, there are many cases where they think they have created an idea and use some of the technology of others, but do not know it." "If you do not consider patent and copyright issues before launching a product, disputes may arise," he said.

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Domestic trademarks, designs, and technology patents are protected for 20 years. If some of the technology or design used by a startup utilizes an existing patent, the patent holder will be helpless to claim damages for the use of the patent. It is common for patent lawsuits to seek not only damages but also an injunction against infringement. If the court grants a preliminary injunction, the business cannot operate for days or even months. It's a death sentence in the ever-changing IT industry."

A former lawyer said, "Most technologies or concepts can be found by simply searching keywords on the Korean Intellectual Property Office's Patent Information Search Service (KIPRIS)." "If you are already in business, you need to find a way to manage your patents," he said. There are three ways companies can respond to patent holder lawsuits: paying royalties, paying damages, or suing for patent invalidation.

He pointed out that private customer information can also become a big legal problem if neglected. <"Companies marketing online often don't know what consent is required," the former lawyer said, "and should adhere to the 'do not collect' principle, which allows companies to collect only the minimum necessary for business purposes." Online and mobile service companies often collect personally identifiable information or location data to provide their services. "Recently, there are also services that collect and utilize sensitive customer information, such as medical information, and the problem becomes serious if the server is hacked due to negligence in server management," he said. The company may have to pay damages to the number of customers, and social criticism will follow."

In addition, he urged companies to hold at least 70 percent of management shares when making investment commitments, and to comply with the Labor Standards Act when paying workers. "There are criminal penalties for paying less than the minimum wage or paying wages in arrears, but many founders take it lightly," he said, adding, "You should know that if you sign a labor contract that violates the law, the contract is invalid." He also explained that if you don't receive payment after delivery, you can apply for a payment order or garnishment. Sejun Jeon passed the 50th bar exam and is in his 40th year of judicial training. He serves as a legal mentor for startups at the Smart Content Center of the Korea Creative Content Agency.

Oh Eunji Reporter onz@etnews.com