Company N (“Client”) attempted business diversification by establishing a cryptocurrency exchange and acquiring a KOSDAQ-listed company but failed. Unable to handle the accumulated losses, Client filed for corporate rehabilitation procedures with the Seoul Bankruptcy Court in April 2019.
Meanwhile, Client acquired a security program through an auction process in 2013, leading to a dispute between Client and the original copyright owner, Company O. Client and Company O have been engaged in criminal and civil litigation over the matter. When Client commenced corporate rehabilitation procedures, Company O claimed damages of KRW 30 billion (approx. USD 21.7 million) against Client for copyright infringement.
In response to Client’s denial of this allegation, Company O sought judgment in claim allowance proceedings, then filed another lawsuit objecting to the resulting ruling of such proceedings. The case was elevated to the appellate court, where an appraisal was conducted to evaluate the similarities of the two copyrights. While some similarities were detected, the court did not recognize an infringement of copyrights.
This case involves allegations of intellectual property infringement within the context of Client's corporate rehabilitation procedures. Our experts diligently countered the plaintiff's claims with our extensive expertise in both bankruptcy and intellectual property and successfully persuaded the court to dismiss the claim.
