The Ministry of SME and Startups said Monday that it would change regulations to prevent businesses from avoiding on-site investigations because they are in litigation.
Last December, the ministry received a report that Daewoong Pharmaceutical had infringed on the technology of botulinum toxin developed by Meditox, a small and midsize enterprise, and attempted to conduct a field investigation on Daewoong’s research center in Yongin, Gyeonggi Province.
However, it could not proceed with the investigation and charged only 5 million won ($4,150) this past March. This was because Daewoong resisted the probes under the pretext of the ongoing litigation with Meditox for the refusal. Daewoong cited "Operation regulation of infringement on SMEs’ technology and implementing recommendations" as the reason for its rejection.
According to the regulation, if a smooth probe is difficult due to a lawsuit between the parties involved, the investigation will be suspended until the case is resolved.
The ministry has decided to change the word “suspend” to "can suspend," making it clear that the investigative authorities can conduct administrative probes as they deem it necessary although lawsuits are going on.
“Even under the existing rules, we could push ahead with probes despite the litigation, but the government has decided to change relevant regulations to make our authority clearer,” a ministry official said.
<© Korea Biomedical Review, All rights reserved.>