'Idol Lightstick' Dispute Spreads... What is my strategy for protecting my IP?

Recently, the controversy over the similarity of the lightstick designs of idol groups 'The Boyz' and 'QWER' is spreading beyond the fandom and into the industry as a whole. As it has been pointed out that the core design of the lightstick released by QWER is similar to the 'loudspeaker' shape that The Boyz has previously used, the conflict is expected to continue as each agency announces legal action.
 

The essence of this situation lies in the boundary between ideas and expressions, which are the core principles of intellectual property law. Article 3 of the Framework Act on Intellectual Property defines intellectual property as something whose property value can be realized through intangible things such as knowledge, information, technology, and expressions of ideas or emotions created or discovered through human creative activities or experiences. In particular, with regard to the appearance of a product, the Design Protection Act and the Unfair Competition Prevention Act specifically specify and protect the subject of protection.

In other words, the concept of a 'loudspeaker-shaped lightstick' itself is an idea, so it is difficult to claim exclusive rights, but the specific shape, color, and proportion that embodies it are clearly the area of ​​intellectual property rights. It has been pointed out that the two controversial light sticks are similar in the area of ​​these ideas, but the difference is also clear: The Boyz's is heart-shaped, while QWER's is circular, which is expected to become a major issue in future legal disputes.

In this case, it will ultimately be judged based on two legal standards: the Design Protection Act and the Unfair Competition Prevention Act. The Design Protection Act serves as a preemptive shield that protects the exclusive rights of previously registered designs. If one party registered the design right first, the court determines infringement by considering whether the overall aesthetic impression of the two designs is similar to the consumer.

On the other hand, even if there is no design registration, the Unfair Competition Prevention Act can serve as an ex post facto relief device. The core of this law is to prevent acts that disrupt market order and obtain unfair profits by imitating the results of others' significant investments or efforts without permission. The court comprehensively considers whether a specific design is already widely known in the market and whether latecomers have imitated it and confused consumers. So what should companies and creators prepare to prevent IP disputes that frequently occur in fast-growing industries and daily life?

First, you need to create an IP portfolio. Many companies and creators are often unaware of what intangible assets they have. For example, in the case of tech companies, it is necessary to look at not only patents but also ideas from the design process, such as research notes and blueprints. Design assets such as the product's appearance and packaging, web and app UI, and content assets such as promotional videos and work manuals are also essential. In the case of creators, creative works such as completed scripts and works as well as individual characters and storyboards must be recognized as a ‘bundle of rights.’

Second, ‘registration first, disclosure later’ should be made an iron rule of business. Before revealing an idea to the world, the most reliable and economical way to protect it is to secure legal rights by first applying for design rights or trademark rights. Responding after a dispute breaks out will only result in the double whammy of huge litigation costs and a decline in brand image.

Third, the possibility of legal disputes during the collaboration process must be prevented through contracts. IP disputes frequently occur not only in relationships with external competitors, but also with internal collaborators (employees, outsourced services, partners) who work together to complete ideas. Therefore, from the beginning of the business, internal risks must be thoroughly managed by establishing clear legal measures, such as ① signing a non-disclosure agreement (NDA) before discussing ideas, ② establishing employee invention regulations that clearly state employees' ideas as company assets, and ③ stipulating IP ownership provisions for outsourced services in the contract.

Ultimately, the way to avoid conflict lies in ‘daily’ management. Building an IP portfolio, the principle of first registration and then disclosure, and tight contract management provide a much more effective shield than responding after the fact. Unnecessary legal disputes can be prevented by preventing legal risks in advance by changing the attitude of recognizing IP protection devices as core competitiveness rather than complex regulations.
 

Small Business Team

[View full article]
Dispute over 'idol lightstick' spreads... What is my strategy for protecting my IP? (Shortcut)