A proposed amendment to the Korean Trademark Act has been announced which would address the issue of counterfeit goods being shipped into the country by foreign sellers. Currently, there is ambiguity in determining whether such shipments constitute trademark infringement, making it difficult for Customs authorities to block them under the provisions of the Customs Act dealing with intellectual property violations.
▒ What is changing?
The revision introduces a new clause that defines the act of a foreign seller shipping goods marked with a trademark into Korea as a form of "trademark use". In doing so, "supply" by foreign sellers will be separated from the act of "import", typically carried out by domestic buyers, and this distinction will allow authorities to treat such imports as trademark infringement, even if the seller is overseas and the item is for personal use.
▒ What is the expected effect?
With Customs authorities having a clear legal basis to seize and block counterfeit goods from entering the country, even if they are intended for personal use, border enforcement is expected to be considerably strengthened with enhanced protection for domestic trademark holders against overseas counterfeiters. At the same time, individual consumers importing goods for personal, non-commercial use will not be punished.
▒ What is the timeline?
The public have been invited to submit opinions on the proposed changes by 14 October. In the absence of any unexpected developments, the amendments are expected to be promulgated before the end of the year and would take effect immediately.
Written by Jonathan MASTERS and Sang-eun SHIN