Key Takeaways:
After a closely watched dispute underscoring the rising tensions around intellectual property (IP) protection in the global beauty supply chain, Kolmar Korea has secured the final legal victory in a long-running trade secret dispute involving Intercos Korea, the Korean subsidiary of Italy-based Intercos.
Following a final ruling by The Supreme Court of Korea in January 2024, two former Kolmar employees were found guilty of unlawfully leaking proprietary sunscreen technology after transferring to Intercos Korea. In subsequent civil proceedings, the Suwon District Court ordered Intercos Korea to pay a fine of 5 million KRW ($3,500) in October 2024 under Korea’s Unfair Competition Prevention and Trade Secret Protection Act. The court also required the losing party to cover the full cost of litigation, with Kolmar Korea recovering KRW 31.2 million ($21,860) in legal expenses (the total amount incurred in connection with the civil proceedings).
The case dates back to 2018, when a Kolmar employee with 10 years of tenure allegedly removed multiple core R&D materials before joining Intercos Korea. The materials included proprietary sunscreen formulation data and new product development documentation. Investigations later determined that a second former employee also participated in the trade secret leakage.
The Supreme Court’s final guilty verdict reinforces the legal risks facing both individuals and corporate entities in cases of IP misappropriation, particularly within the highly competitive sunscreen category, where formulation nuance and regulatory compliance represent significant barriers to entry.
“This ruling represents the firm application of our principle that technology leakage must be held accountable to the very end,” a Kolmar Korea spokesperson said in a statement. “We will continue to take all necessary measures to protect our core technologies and R&D assets.”
Kolmar Korea has positioned itself as a global leader in UV protection research. In 2022, the company established its UV Tech Innovation Lab and now holds more than 100 patents related to UV technologies. In 2013, Kolmar became the first Korean company to secure US FDA over-the-counter certification for sunscreen products. Most recently, the company announced the development of what it describes as the world’s first stabilization technology for a hybrid composite sunscreen combining mineral and chemical UV filters.
The case highlights increasing scrutiny around IP protection within the original equipment manufacturer (OEM) and original design manufacturer (ODM) ecosystem, a system that underpins much of the global beauty industry’s manufacturing. As Korean manufacturers continue to strengthen their role as innovation engines for both domestic and international brands, proprietary formulation technology, particularly in complex categories such as suncare, has become a critical competitive asset.
For an industry increasingly driven by speed to market, cross-border talent mobility, and outsourced innovation, the Kolmar ruling serves as a reminder that proprietary R&D remains a strategic asset and courts are more than willing to enforce protections rigorously. As global demand for high-efficacy, regulatory-compliant suncare continues to accelerate, safeguarding formulation expertise may prove just as critical as developing it.
