Samsung Biologics accuses employees joining Lotte of trade secret theft

Samsung Biologics has filed another police report against departing employees set to join Lotte Biologics, alleging trade secret infringement.

Samsung Biologics' fourth plant in Songdo, Incheon [SAMSUNG BIOLOGICS]

Samsung Biologics has filed another police report against departing employees set to join Lotte Biologics, alleging trade secret infringement.

The latest accusation follows the ongoing legal dispute between the two contract manufacturing organizations over alleged trade secret theft.

Samsung Biologics lodged a complaint with the Incheon Metropolitan Police last week, accusing two of its employees of taking internal documents with confidential information outside the company.

The employees have both previously notified Samsung Biologics that they will be leaving the company, and one of them specified said they would be moving to Lotte Biologics.

Samsung Biologics was reported to have identified the infringement during the security check and fully retrieved the documents.

Samsung Biologics also sent certified mail — where the delivery and receipt can be tracked and legally proved — to Lotte Biologics, notifying the company that legal action has been taken against its new employees over the potential leakage of trade secrets.

The two companies have been butting heads for over a year. They have been involved in four civil and criminal legal cases since June last year when Samsung Biologics first applied for an injunction for the infringement of trade secrets by three employees who moved to Lotte Biologics in June last year.

The Incheon District Court issued an injunction against the infringement of trade secrets filed by Samsung Biologics, preventing Lotte Biologics' use of the leaked business secrets in July last year.

In March, prosecutors in Incheon indicted a Lotte Biologics employee on charges of stealing trade secrets from Samsung Biologics, after Samsung Biologics sued four of its employees who were suspected of leaking critical trade secrets to Lotte.

Lotte Biologics CEO Richard Lee served as the head of the drug product business unit at Samsung Biologics before joining Lotte.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]