Case of Violation of the Unfair Competition Prevention Act

  • Sneaked the customer information out of my place of employment and got arrested by police officer of the Metropolitan Police Department…
  • Sold game backup devices which enable to use illegally-copied game software. After domiciliary search by Manseibashi Police Station of the Metropolitan Police Department, got arrested and detained…

 

1. Violation of the Unfair Competition Prevention Act –Infringement of Trade Secrets

Unfair Competition Prevention Act sets penal provisions which punish severely certain conducts including wrongful acquisition and disclosure of a trade secret as the infringement of trade secrets (Article 21(1) of the Unfair Competition Prevention Act).

In principle, the act of using or disclosing to a third person a trade secret that was acquired in an unauthorized manner, for the purpose of acquiring an illicit gain and bringing harm to the person who hold the trade secret, is subject to criminal punishment as the infringement of trade secrets. Each item of Article 21(1) of the Unfair Competition Prevention Act provides types of wrongful acquisition of a trade secret.

Any natural person who falls under the infringement of trade secrets shall be punished by imprisonment with work for not more than ten years, a fine of not more than ten million yen, or both.

Any legal person who falls under the infringement of trade secrets shall be punished by a fine of not more than one hundred million yen.

The infringement of trade secrets is an offense which cannot prosecuted without a complaint by the victim.

Classic example of the infringement of trade secrets: sneaking the lists of clients kept in company and passing them to a competitor or selling them to a list operator.

 

2. Violation of the Unfair Competition Prevention Act – Copycat Products

Article 21(2)(i) – (iii) provide penalty for the act of unfair competition such as copying of famous brand-name products and selling of fake products for a wrongful purpose.

For example, the act which leads misconception or confusion of subject of a product, use of indication of another person’s famous goods, and distributing dead-copy products.

Anyone who violates the Unfair Competition Prevention Act is to be punished by imprisonment with work for not more than five years, a fine of not more than five million yen, or both.

When any legal person who violates the Act in the way of business, not only the offender but also the legal person is to be punished by a fine (joint punishment provision). (Article 22 of the Unfair Competition Prevention Act)

 

3. Violation of the Unfair Competition Prevention Act – Provision of Programs and Devices Circumventing Technical Restriction Measures

Any person who has committed the act of unfair competition for the purpose of causing injury to one who uses technical restriction measures shall be punished by imprisonment with work for not more than five years or a fine of not more than five million yen, or both. (Article 21(2)(ⅳ) of the Unfair Competition Prevention Act).

The pay-TV and home-use game software are programs and devices using technical restriction measures.

Specific example of violation of the Unfair Competition Prevention Act for providing programs and devices circumventing technical restriction measures are: the acts of providing or selling the programs or devices (game backup device) which enable to use illegally-copied game software; and, the acts of providing or selling the programs or devices which falsify the BS conditional access system card to circumvent the scramble broadcasting that only pay-TV subscribers can watch.

 

~Appoint Lawyer in Case of Violation of Unfair Competition Prevention Act~

Please consult with lawyer soon if you got arrested or detained by police for violation of the Unfair Competition Prevention Act.

As the Act provides various prohibited acts, the lawyer needs to provide with appropriate defense activities after figuring out the circumstances promptly.

For example, in case of dead-copy product, there is a possibility to have a formal trial and face imprisonment with work depending on the extent of the offence including numbers and terms of sales, and the degree of the infringement to a right holder.

There are circumstances when it needs technical interpretation of delict in case of violation of Unfair Competition Prevention Act. If you consult with lawyer at an early date, you can receive consistent defense activities based on the future prospect of the case.

Interrogation by police varies from a channel of acquisition and sale destination to existence or non-existence of other crimes. It is expected that after arresting you will have almost daily interrogation and investigation. Police might make a written statement through nuance or in a context different from the content that you said to the police officer. For early release, we recommend you consulting with lawyer who has a good knowledge and experience in the Unfair Competition Prevention Act and get advice.

At AICHI Criminal Cases Law Firm, you get the best advice from lawyers who have a rich experience in the cases of violation of the Unfair Competition Prevention Act. Criminal lawyers personally provide with “free legal consultation”. In cases where the suspect got arrested, we also provide for “the first interview service” which at the earliest on the day, a lawyer personally goes where the suspect is.

 

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