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Legal Issues Related to Blockchain Technology—Examples from Korea

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Book cover Legal Tech and the New Sharing Economy

Part of the book series: Perspectives in Law, Business and Innovation ((PLBI))

Abstract

Blockchains are used to record all transactions into online ledgers, which are subsequently saved onto many blocks across the Internet. The popularity of cryptocurrencies, which make use of blockchain technology, has made the public interested in blockchain technology. Blockchain technology, however, is used in many fields, including cryptocurrencies. This chapter deals with two issues raised by the Korean legal community in terms of blockchain technology. One is intellectual property-related issues of open source software on which blockchain technology is based. The other issue concerns how to guarantee the authenticity of e-Appostilles by using blockchain technology. The lack of authenticity of e-Appostilles is a big legal hurdle which prevents e-Appostilles from gaining popularity in many countries. Blockchain computing is a good solution for guaranteeing the authenticity of e-Appostilles. In this regard, the chapter illustrates an inherent legal issue of blockchain technology and blockchain technology as a method to solve a current legal problem. At the outset, this chapter indicates that blockchain technology based on open source software can be subject to intellectual property-related issues. Also, this chapter ensures that blockchain technology can enhance the world-wide application of e-Appostilles. However, it is necessary for each country to employ the technology which complies with its domestic law on digital signatures, on electronic documents, and on public notaries prior to application of the new technology. In cases where the underlying public document is paper, compared to a digital file and overseas Koreans request issuance of e-Apostilles, the issuing authority’s legal system needs to be adopted to issue English electronic public documents as its underlying public document. Otherwise, overseas Koreans should have to notarize the translated version of paper-typed public documents. It is an inefficient and cumbersome process. Also, this paper illustrates that blockchain technology can establish a decentralized and secure system of e-Register for e-Apostilles by preventing each Contracting Party to the Apostille Convention from joining unified e-Register system advised by an international organization.

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Notes

  1. 1.

    Galavis (2019), p. 563.

  2. 2.

    See, e.g., Jeffery (2017).

  3. 3.

    See, e.g., Hammerschmidt (2017).

  4. 4.

    See Miles (2017).

  5. 5.

    Kasireddy (2018).

  6. 6.

    2015 Bill Text NH H.B. 552.

  7. 7.

    Ehrsam (2017).

  8. 8.

    Wright and De Filippi (2015), pp. 27–28.

  9. 9.

    Sung (2018), p. 72.

  10. 10.

    Korea Copyright Commission, Open Source SW License Information Systems. Available at: https://www.olis.or.kr/en/LicenseIntroduction.do. Accessed 30 June 2019.

  11. 11.

    Lee (2007), p. 408; Lee et al. (2012), p. 15.

  12. 12.

    Lee (2006), pp. 953–956.

  13. 13.

    Korean Patent Court Decision on August 29, 2013, pp. 1–42 (Case No. 2013 Heo 1023).

  14. 14.

    Korean Patent Court Decision on August 29, 2013, pp. 1–42 (Case No. 2013 Heo 1023).

  15. 15.

    Korean Patent Court Decision on August 29, 2013, pp. 3, 13 (Case No. 2013 Heo 1023).

  16. 16.

    Korean Supreme Court Decision on February 12, 2009, pp. 1–4 (Case No. 2006 Do 8369).

  17. 17.

    Dong and Kim (2010), p. 15.

  18. 18.

    Dong and Kim (2010), p. 15.

  19. 19.

    VTUN is the open source software which improves network transfer speed by implementing channel bonding.

  20. 20.

    ETUN is a VPN software mainly developed by defendant A together with B, C, and D under the employment of ElimNet from September 2002 to March 2004 based on the VTUN. A accepted a suggestion by HaionNet to join its VPN business on October 2004 and turned VTUN. HL which adds some improvement of ETUN over to an employee of HaionNet on November 2004. Afterward, A resigned from ElimNet without transferring the source code of ETUN to ElimNet while keeping the copy personally and by the request of the employee of HaionNet fixed some bug of ETUN and named it HAI, and the employee of HaionNet commenced the commercial service using HAI since January 2005. While ElimNet and HaionNet are the only companies providing VPN service based on VTUN code in Korea, and HaionNet’s HAI and ElimNet’s ETUN share much of their source codes, HaionNet dishonestly advertised on its homepage and in business promotion that HAI to was an innovative technology developed on June 2004 on its own.

  21. 21.

    Korean Supreme Court Decision on February 12, 2009, p. 4 (Case No. 2006 Do 8369).

  22. 22.

    Korean Supreme Court Decision on February 12, 2009, p. 4 (Case No. 2006 Do 8369).

  23. 23.

    Samsung Open Source Release Center, available at http://opensource.samsung.com/ (accessed on June 22, 2019).

  24. 24.

    LG OpenSource CodeDistribution. Available at: http://www.lg.com/global/support/opensource/opensource.jsp. Accessed June 22, 2019.

  25. 25.

    Lee et al. (2012), p. 23.

  26. 26.

    Sohn (2012), pp. 87 and 114.

  27. 27.

    Offerman, Open versus Closed Source: A Delicate Balance. Available at: https://joinup.ec.europa.eu/elibrary/case/open-versus-closed-source-delicate-balance.

  28. 28.

    Offerman, Open versus Closed Source: a Delicate Balance. Available at: https://joinup.ec.europa.eu/elibrary/case/open-versus-closed-source-delicate-balance. Accessed 24 June 2019.

  29. 29.

    HCCH, HCCH Convention of 5 October 1961 Abolishing the Requirement of Legalisation for Foreign Public Documents, p. 1. Available at: https://assets.hcch.net/docs/80d0e86f-7da8-46f8-8164-df046285bcdd.pdf. Accessed 20 July 2019.

  30. 30.

    HCCH, Status Table: Convention of 5 October 1961 Abolishing the Requirement of Legalisation for Foreign Public Documents. Available at: https://www.hcch.net/en/instruments/conventions/status-table/?cid=41. Accessed 20 July 2019.

  31. 31.

    HCCH, Status Table: Convention of 5 October 1961 Abolishing the Requirement of Legalisation for Foreign Public Documents. Available at: https://www.hcch.net/en/instruments/conventions/status-table/?cid=41. Accessed 20 July 2019.

  32. 32.

    Article 1 of Apostille Convention.

  33. 33.

    Lee et al. (2017), p. 39.

  34. 34.

    Lee et al. (2017), p. 39.

  35. 35.

    Article 1 of Apostille Convention.

  36. 36.

    Ministry of Foreign Affairs, Republic of Korea e-Apostille Service. Available at: http://www.apostille.go.kr. Accessed 20 July 2019.

  37. 37.

    Lee et al. (2017), p. 39.

  38. 38.

    Article 2, subparagraph 2 of Digital Signature Act (Act No. 14839, July 26, 2017).

  39. 39.

    Article 2, subparagraph 3 (a) to (d) of Digital Signature Act.

  40. 40.

    Article 2, subparagraph 1 of the Framework Act on Electronic Documents and Transactions.

  41. 41.

    Article 4, paragraph 1 of the Framework Act on Electronic Documents and Transactions.

  42. 42.

    Article 11 of the Framework Act on Electronic Documents and Transactions.

  43. 43.

    Article 31-7, paragraph 1 of the Framework Act on Electronic Documents and Transactions.

  44. 44.

    Article 31-7, paragraph 2 of the Framework Act on Electronic Documents and Transactions.

  45. 45.

    Article 40 of the Framework Act on Electronic Documents and Transactions.

  46. 46.

    The Hague Conference on Private International Law Permanent Bureau (2013), p. 63, paragraph 270.

  47. 47.

    The Hague Conference on Private International Law Permanent Bureau (2013), p. 64, paragraph 271 (“For a multi-page document, the Apostille should be placed on the signature page of the document. If an allonge is used, this should be affixed to the front or the back of the document (see C&R No 17 of the 2003 SC). For practical reasons, an Apostille should be placed on the underlying public document in a way that does not conceal the matters being certified (e.g., the signature), or any content of the document.”); The Hague Conference on Private International Law Permanent Bureau (2013), p. 64, paragraph 272 (“If attaching the Apostille to a particular document is not practical (or indeed not permitted by the law of its State), the Competent Authority may wish to instruct the applicant to obtain a certified copy of the document to be apostillized instead.”).

  48. 48.

    The Hague Conference on Private International Law Permanent Bureau (2013), p. 64, paragraph 273 (“Competent Authorities should inform applicants that the Apostille must remain attached to the underlying public document. In particular, they should advise applicants wishing to make photocopies of apostillized documents that detaching the Apostille from the underlying public document invalidates the Apostille.”).

  49. 49.

    Lee et al. (2017), at 44.

  50. 50.

    Id.

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Correspondence to Gyooho Lee .

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Lee, G. (2020). Legal Issues Related to Blockchain Technology—Examples from Korea. In: Corrales Compagnucci, M., Forgó, N., Kono, T., Teramoto, S., Vermeulen, E.P.M. (eds) Legal Tech and the New Sharing Economy. Perspectives in Law, Business and Innovation. Springer, Singapore. https://doi.org/10.1007/978-981-15-1350-3_9

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