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Commercial Code Amendments Allow Similar Trade Names
16 November 2012
On April 29, the Korean National Assembly passed amendments to the Korean Commercial Code and the Commercial Registration Act during its plenary session. The principal aim of the amendments, according to lawyers at Yulchon in Seoul, is to make it easier to form companies and operate small businesses by eliminating a number of cumbersome procedures that exist under the Korean Commercial Code and Commercial Registration Act. One provision is of particular interest to intellectual property rights owners.
The amendments eliminate the restriction on the use of similar trade names and allow registration of a new trade name so long as the trade name is not identical to an existing trade name registered within the same administrative region.
Presently, the trade name search usually takes two to three days and the registrar in charge is given significant discretion in determining similarity. By eliminating the restrictions, the amendments expedite the incorporation process and prevent arbitral determination of different registrars to further ensure a transparent registration process.
Yulchon lawyers note that, depending on circumstances, the use of a similar trade name may be subject to a criminal complaint or a civil action to be filed by the existing trade name holder based on the Unfair Competition Prevention Act and/or the Korean Civil Code.
The amendments had not been promulgated at press time, but were expected to be promulgated by the end of May.
