Samsung Electronics

[Alpha Biz= Reporter Kim Sangjin] Former Samsung Electronics Vice President An Seung-ho has been arrested for illegally obtaining internal confidential documents and filing a patent infringement lawsuit against Samsung Electronics in the United States, as reported by foreign media including the Wall Street Journal on the 18th (local time).

The Seoul Central District Prosecutors' Office's IT Crime Investigation Division (led by Prosecutor Ahn Dong-geon) announced on the 18th that former Vice President An was indicted and arrested on charges of violating the Unfair Competition Prevention and Trade Secret Protection Act (leaking trade secrets, etc.). An, along with a Samsung Electronics IP team employee identified as Mr. A, was arrested for leaking internal secrets to An.

An, a former head of Samsung Electronics' Intellectual Property (IP) division, founded a patent management company (NPE) to profit from patent rights shortly after leaving the company in 2019. He acquired illegal Samsung Electronics confidential documents from Mr. A and used them as the basis to file a $90 million lawsuit for patent infringement against Samsung Electronics in the United States.

However, the U.S. Eastern District Court of Texas recently dismissed the lawsuit. The U.S. court explicitly stated in its ruling that their illegal actions were "dishonest, unfair, deceitful, and contrary to the rule of law." It specifically criticized An's use of Samsung's internal confidential information to unfairly advance the lawsuit, stating that "An's actions violated his fiduciary duty to Samsung as a lawyer who went to study in the United States with the company's support during his tenure."

The prosecution conducted raids and secured decisive physical evidence proving the crimes of those involved, including former Vice President An and Mr. A, and brought charges against four individuals. It has been reported that some of them have admitted to obtaining and using internal reports.

During the investigation, the prosecution also uncovered the fact that Mr. A, who leaked Samsung Electronics' internal reports, established a patent consulting firm in Japan and acted as a broker, receiving internal information from Mr. B, a group leader at Samsung Display's application group. As a result, Mr. B has also been arrested and charged with embezzlement and violations of the Unfair Competition Prevention and Trade Secret Protection Act.

 

 

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