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Overview of the National IP Policies and Overview of the National IP Policies and Services in Korea and Presentation of Services in Korea and Presentation of
Their Best PracticesTheir Best Practices
Eulsoo Seo
Counsellor, SMEs Divsion
World Intellectual Property Organization
22
ContentsContents
1. Economic Growth and Intellectual Property of Korea
2. Why SMEs are important in Korea
3. Road to the IP-centered Government of Korea
4. SMEs Support Policies on IP in Korea
5. Recommendation and Suggestion
33
1. Economic Growth and Intellectual Property of Korea 1. Economic Growth and Intellectual Property of Korea
44
Average annual GDP growth rate of 14.3% Average annual GDP growth rate of 14.3%
Average annual per capita GDP growth rate of 12.7%Average annual per capita GDP growth rate of 12.7%
Economic Growth in KoreaEconomic Growth in Korea
<<Source : Bank of Korea>>GDP GDP per capita
GDP GDP per capita
1961 2007
$2b
$500b
$1,000b
$80
$20,000
$10,000
$2.1b
Year
$82
$969.9b$20,045
ㅍ
55
LG Electronics, Samsung Electronics
22.3Air-conditioners
Samsung Electronics, LG Electronics.
14.3Refrigerators
Hyundai Heavy Industries,Doosan Engine Co.,STX Heavy Industries
59.6Large diesel engines for ships
Hyundai Heavy Industries, Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering Co.
80.0LNG carriers
Samsung SDI, LG Electronics 54.0PDPs
Samsung Electronics, LG Display
46.5TFT-LCDs
Samsung Electronics,Hynix Semiconductor
49Semiconductors
CompanyWorld market share (%)Product
Some Facts on Industrial Power of KoreaSome Facts on Industrial Power of Korea
Petrochemical Products
LG Chem, SK 45
66
Korea’s Status in Intellectual Property (1)Korea’s Status in Intellectual Property (1)
The Number of Patent Applications
The No. of Patent applications (Ranking)
The No. of PCT applications (Ranking)
USA Germany
Japan
China
Republic of Korea
Patents
460,000
360,000
260,000
160,000
60,000
426,000 (1) 54,000
27,000
20,000
13,000
6,000
52,492(1)
409,000(2)
27,714(2)
173,000(3)
17,793
(3)166,000
(4) 7,059
(4)61,00
0(5)
PCT
5,459(7)
77
Korea’s Status in Intellectual Property (2)Korea’s Status in Intellectual Property (2)
The Number of Resident filings per million dollars of R&D expenditure (Ranking)
The Number of Resident filings per billion dollars of GDP (Ranking)
Some Indicators of Patent Intensity
<<Source : WIPO Patent Statistics 2007>>
Republic of Korea
USAJapan Germany
New Zealand
The Number ofResident filings per billion dollars of GDP
The Number of Resident filingsper million dollars of R&D expenditure
13
0
10
0
70
40
10
129.10 (1) 5
4
3
2
1
5.08(1) 103.5
3(2)
3.37(2)
22.38
(3)0.91(8)
20.77
(4)
1.82(3)
18.82
(5)
0.72(10)
88
Patent Applications and Economic Growth in KoreaPatent Applications and Economic Growth in Korea
0
50,000
100,000
150,000
200,000`
250,000
1970 1975 1980 1985 1990 1995 2000 2005
Nu
mb
er
of
ap
plic
atio
ns
0
100
200
300
400
500
600
700
800
900
GD
P (
Bill
ion
do
llars
)No. of applications
GDP of Korea
99
Advanced countries
Keep IP promotion as a priority mission
Strive to establish an infrastructure of IP automation
“ “ Intellectual property is the key to economic Intellectual property is the key to economic
development in a knowledge-based economy”development in a knowledge-based economy”
1010
2. Why SMEs Are Important in Korea? 2. Why SMEs Are Important in Korea?
1111
Key Stats of SMEs in Korea (1)Key Stats of SMEs in Korea (1)
# of SMEs Employee of SMEs
Number (Thousan
d)
Percent Number (Thousan
d)
Percent
Korea 3,018 99.9 10,885 87.5
Japan 5,652 99.1 41,984 77.8
Taiwan 1,244 97.7 7,751 76.6
U.S. 6,421 85.6 58,645 50.4
U.K. 4,461 99.9 13,186 58.8
Number & Percent of SMEs in Some Countries (2006)
1212
Key Stats of SMEs in Korea (2)Key Stats of SMEs in Korea (2)
Applicant
20052005 20062006 20072007 20082008
Big Companies
71.926(45.8%)
62,097(38.9%)
56,024(32.5%)
47,568(28.4%)
Foreign 34,926(22.3%)
39,897(25.0%)
46,166(26.75)
43,608(26.1%)
SMEs 20,540(13.1%)
23,412(14.7%)
27,770(16.1%)
22,750(13.6%)
Etc. 29,539(18.8%)
34,050(21.4%)
42,691(24.7%)
53,339(31.9%)
Total 156,932(100%)
159,457(100%)
172,652(100%)
167,266(100%)
Shares of Patent Applicants in Korea (2006)
(Thousand)
1313
Key Stats of SMEs in Korea (3)Key Stats of SMEs in Korea (3)
Rank
ApplicantApplicant Main Business AreaMain Business Area # of # of ApplicationApplication
ss
1 MtekVision Cell Phone Platform 461
2 Orion PDP PDP Display 263
3 Modine Korea Automobile Parts 230
4 ADP Engineering LCD Process Equipment 218
5 Gentro Civil Engineering 172
6 IPS-tech Semiconductor Equipment 166
7 Top Engineering LCD Process Equipment 165
8 Irevo Digital Door Lock 152
9 BSE Sound Electronics 139
10 Seoul Optodevice LED Process Equipment 135
Top 10 Patent Applicants of SMEs in Korea (’04-’08)
1414
3. Road to the IP-centered Government of Korea 3. Road to the IP-centered Government of Korea
1515
Brief History of IP Administration in Korea (1)Brief History of IP Administration in Korea (1)
Enacted the First Patent Decree19051905
Enacted the First Patent Law19461946
Established the International IP Training Institute19871987
Set up the Special Budget Account for IP Admn.19881988
Second Surge of Patent Application1992-1992-
9696
Patent Bureau under the Commerce Department19481948-76-76
Korean Patent Office19771977
First Sharp Increase of Patent Application 19791979
1616
The highest e-filing rate in the world
Launch of the world’s first Internet-based e-filing system for patent applications
Established IP automation plan in 1995
Three-years of development
Brief History of IP Administration in Korea (2) Brief History of IP Administration in Korea (2)
200200
77 100
80
60
40
USA EU Republic of Korea Japan
32%32%49%49%
97%97%97%97%
%
1717
Korean patent documents included in the PCT minimum
documentation (Apr. 2007)
Korean language as a PCT language of publication
(Jan. 2009)
Korea conducts International Searches and International
Examinations for eight countries: - (2002)Philippines, Vietnam; (2003) Indonesia; (2004) Mongolia, Singapore; (2005) New Zealand; (2006) USA, Malaysia
* International search requests from foreign applicants
(2006) 735 → (2007) 2,853 → (May 2008) 4,337
Brief History of IP Administration in Korea (3)Brief History of IP Administration in Korea (3)
1818
Brief History of IP Administration in Korea (4)Brief History of IP Administration in Korea (4)
Strategy 2. Takeoff to an IP PowerhouseStrategy 2. Takeoff to an IP Powerhouse
Strategy 3. Conversion into Pro-IP SocietyStrategy 3. Conversion into Pro-IP Society
Strategy 1. IP-Hub KoreaStrategy 1. IP-Hub Korea
Fostering Leading Companies with World-class IPRs Facilitating Growth of IP-Creating IndustriesDeveloping Human Resources with High Quality in the IP Field
KIPO as a World-class IP Administrative OfficeExpansion of International Examination Cooperation and Development of Global IP SystemContribution to Make Global IPR Community for Co-prosperity and Humanity
Promoting Social Climate for Respecting IPRReforming Compensation System for Creative ActivitiesEstablishing Business-friendly Judicial System on IPImproving Efficiency of IPR Administrative System
Top-class
Country Based
on IP in the 21st
Century
KIPO VISION
1919
4. SMEs Support Policies on IP in Korea 4. SMEs Support Policies on IP in Korea
2020
Organigram of KIPOOrganigram of KIPO
2121
Organigram of JPOOrganigram of JPO
2222
Brief History of IP Support Programs for SMEs in KoreaBrief History of IP Support Programs for SMEs in Korea
195195
0s0sDesignating May 19 as the National Invention Day (1957)
Enacting the Invention Protection Act (1958)
Awarding the Invention Prize (1959)
198198
0s0sUpgrading Ceremony of the National Invention Day (1982)
Holding the First Good Invention Exhibition (1982)
Subsidizing International Patent Applications (1982)
199199
0s0sEnacting the Invention Promotion Act (1994) Opening the Consulting Center on IP Commercialization (1994)
Opening the Inventors Hall of Fame (1999)
200200
0s0sConducting the IP Holding Campaign for SMEs (2000) Est
ablishing the Regional IP Consulting Centers (2004)
Distributing Patent Maps for SMEs (2004~)
2323
Overview of IP Support Programs for SMEsOverview of IP Support Programs for SMEs
Happy CEO Program: Making CEO of SMEs be confident in global business with successful IP Management
Happy CEO Program: Making CEO of SMEs be confident in global business with successful IP Management
TypeType Program TitleProgram Title ContentContent
Consulting
One Roof Total Service
30 regional IP centers with patent consultants
IP Management Consulting
KIPO expert visits a company, give IP strategy consulting on site
R&D Support
IP-R&D Strategy Support
Provide a patent map service on a specific technology that is requested by SMEs
HR Training
IP Staff TrainingProvide on-site case study focused on IP issues that can be immediately needed
LitigationInternational
Patent Litigation Support
Consult how to response international patent conflicts including litigation
BrandsNon-English Local
Brand SupportConsult how to develop local language brands for SMEs to enter non-English language markets
Commer-cialization
IP Commercialization Package Support
Package support program covering foreign application fees sample m․anufacturing technology assessment costs, etc.․
2424
IP Support Programs Customized to SMEsIP Support Programs Customized to SMEs
IPIP knowledgeknowledge & & understandingunderstanding levels,levels,requirement requirement levels for IP Supportlevels for IP Support
▶ (Advanced) high knowledge & understanding, (Advanced) high knowledge & understanding, requirement of specific IP support programrequirement of specific IP support program
▶ (Intermediate) good knowledge & understanding, (Intermediate) good knowledge & understanding, requirement of broad IP support programsrequirement of broad IP support programs
▶ (Beginner) low knowledge & understanding, requirement (Beginner) low knowledge & understanding, requirement of intensive IP support programsof intensive IP support programs
▶ (Advanced) high knowledge & understanding, (Advanced) high knowledge & understanding, requirement of specific IP support programrequirement of specific IP support program
▶ (Intermediate) good knowledge & understanding, (Intermediate) good knowledge & understanding, requirement of broad IP support programsrequirement of broad IP support programs
▶ (Beginner) low knowledge & understanding, requirement (Beginner) low knowledge & understanding, requirement of intensive IP support programsof intensive IP support programs
CategoryCategory SMESME Targeted Services Targeted Services
BeginnerWithSolutio
n• IP Management Consulting• One Roof Total Service
Intermediate
Adbiotech• IP Management Consulting• IP Staff Training
AdvancedDacc
• IP Management Consulting• Int’l Patent Litigation Support
Buwon• Non-English Local Brand Support Program
2525
Pre-Assessment of IP Management
Example 1: Beginner SME – Example 1: Beginner SME – WithSolution
Security Equipment Company, est. in ‘08Security Equipment Company, est. in ‘08
CEO had high IP interest,
but classified as IP BeginnerIP Beginner
due to recent establishment
- only 1 patent pending at the time - only 1 patent pending at the time
• No employee invention compensation & trade secret
protection policies
• Requires basic understanding of IP
• Requires intensive IP management consulting
2626
IP Management Consulting for SMEsIP Management Consulting for SMEs
On-site Intensive ConsultingOn-site Intensive ConsultingOn-site Intensive ConsultingOn-site Intensive Consulting
KIPO expert provides consulting on site at the company
* ’06: 34, ’07: 101, ’08: 147 SMEs
Patent Management Consulting
* basic patent management, application & management strategy, using patent data, Handling patent conflicts
Online support through IP portal (www. Ipp.or.kr)
KIPO expert provides consulting on site at the company
* ’06: 34, ’07: 101, ’08: 147 SMEs
Patent Management Consulting
* basic patent management, application & management strategy, using patent data, Handling patent conflicts
Online support through IP portal (www. Ipp.or.kr)
It consists of pre-assessment, customized consulting and after service
2727
One Roof Total Service: 30 Regional IP Centers One Roof Total Service: 30 Regional IP Centers
Fostering Patent Star Companies through Selection and Focus
R&D & Commercialization Support
Patent Search Customized for Local SMEs
2828
Result of the WithSolutionResult of the WithSolution
‘‘09 Earnings:09 Earnings:
500% growth500% growth
(expected)(expected)Successful IP Successful IP
ManagementManagement’’08 Earnings:08 Earnings:
400M(KRW)400M(KRW)
Robust IP SMERobust IP SME
• Implementing employee invention compensation & trade secret Implementing employee invention compensation & trade secret
protection policiesprotection policies
• Holding Brainstorming sessionsHolding Brainstorming sessions
• Setting up future IP strategy based on patent map analysis Setting up future IP strategy based on patent map analysis
• Implementing employee invention compensation & trade secret Implementing employee invention compensation & trade secret
protection policiesprotection policies
• Holding Brainstorming sessionsHolding Brainstorming sessions
• Setting up future IP strategy based on patent map analysis Setting up future IP strategy based on patent map analysis
2929
Pre-Assessment of IP Management
Example 2: Intermediate - Example 2: Intermediate - Adbiotech
Start-up SME (est. in 2000) Start-up SME (est. in 2000)
• Animal Science, Food and Animal Science, Food and CosmeticsCosmetics
• Holding 3 patents & 5 trademarks Holding 3 patents & 5 trademarks
and having high interest in IP and having high interest in IP rights, rights,
but do not have IP management but do not have IP management
strategystrategy
• Animal Science, Food and Animal Science, Food and CosmeticsCosmetics
• Holding 3 patents & 5 trademarks Holding 3 patents & 5 trademarks
and having high interest in IP and having high interest in IP rights, rights,
but do not have IP management but do not have IP management
strategystrategy
A Staff in charge of IP was not able to focus on IP affairs and to build up his expertise due to other duties
▶ Requires IP-specialized staff and professional training
3030
IP-specialized Staff TrainingIP-specialized Staff Training
On-site Training Customized for SME LevelOn-site Training Customized for SME Level
Level Courses Aim
Beginner• Introduction of IP (4hrs)
• IP & R&D (4hrs)
Understanding of basic IP Principles
Intermediate
• Patent application & claim drafting (4hrs)
• Prior arts search (4hrs)
• Strategic patent management (4hrs)
patent applications & patentManagement skills
Advanced
• Licensing contract & strategy (4hrs)
• Domestic & foreign IP litigation (4hrs)
• Patent management (4hrs)
• Simulation (8hrs)
patent litigation skillsand other professional works
3131
Result of the AdbiotechResult of the Adbiotech
• Filed patent application drafted by its staffFiled patent application drafted by its staff
• Developed a new technology based on several prior Developed a new technology based on several prior
arts that was searched by its staffarts that was searched by its staff
• Skilled up its IP-specialized staffSkilled up its IP-specialized staff
• Filed patent application drafted by its staffFiled patent application drafted by its staff
• Developed a new technology based on several prior Developed a new technology based on several prior
arts that was searched by its staffarts that was searched by its staff
• Skilled up its IP-specialized staffSkilled up its IP-specialized staff
Export aim Export aim
in ’12: 15B KRWin ’12: 15B KRW
With core patents With core patents
Upgraded staffUpgraded staff
expertiseexpertise
Low staffLow staff
expertiseexpertiseRobust IP SME Robust IP SME
3232
Example 3: Advanced SME –Example 3: Advanced SME – Dacc
Aircraft Components Manufacturer [est. in
’02) Aircraft Components Manufacturer [est. in
’02)
Medium sized business with high R&D ability, which was founded as a spin-off from Korea Aerospace Industries Ltd. (research institutes) .
Medium sized business with high R&D ability, which was founded as a spin-off from Korea Aerospace Industries Ltd. (research institutes) .
Aggressive R&D investment and
Uses govt’l R&D projects efficiently for new tech. development,
But, did not carry out systemic IP management
Pre-Assessment of IP Management
3333
Protection from Future IP DisputesProtection from Future IP Disputes
IP Dispute Prediction System and Insurance SystemIP Dispute Prediction System and Insurance System
Patent Dispute Prediction Sys.
Patent Dispute Prediction Sys.
Reports on patent trolls
Provide international patent dispute maps
Provide technology- based patent dispute maps
IP Insurance SystemIP Insurance System
Conduct its business without concerning possible IP disputes
Conduct its business without concerning possible IP disputes
IP Insurance
Support costs for IP disputes
25 companies joined
3434
Result of the DaccResult of the Dacc
• Continuously monitoring on the possibility of disputesContinuously monitoring on the possibility of disputes
• Developing new technologies based on patent dispute maps, Developing new technologies based on patent dispute maps,
designing around major blocking prior artsdesigning around major blocking prior arts
• Continuously monitoring on the possibility of disputesContinuously monitoring on the possibility of disputes
• Developing new technologies based on patent dispute maps, Developing new technologies based on patent dispute maps,
designing around major blocking prior artsdesigning around major blocking prior arts
Prep. for possible disputes
Possess core patents
Top 5 in world by 2012
Robust IP SME
3535
Example 4: Advanced SME – Example 4: Advanced SME – Buwon
• Kitchen hand blender Kitchen hand blender manufacturermanufacturer
• Taking up 75% or more of Korean Taking up 75% or more of Korean
kitchen hand blender marketkitchen hand blender market
• Entered Chinese market in 2007 Entered Chinese market in 2007 but but
failed.failed.
• In 2008, reentered Chinese In 2008, reentered Chinese marketmarket
• Kitchen hand blender Kitchen hand blender manufacturermanufacturer
• Taking up 75% or more of Korean Taking up 75% or more of Korean
kitchen hand blender marketkitchen hand blender market
• Entered Chinese market in 2007 Entered Chinese market in 2007 but but
failed.failed.
• In 2008, reentered Chinese In 2008, reentered Chinese marketmarket
Dominated its Korean market with its high technology Dominated its Korean market with its high technology
But failed in Chinese market because its Korean brand was But failed in Chinese market because its Korean brand was not well-known in Chinanot well-known in China
Pre-Assessment of IP Management
3636
Non-English Local Brand Support ProgramNon-English Local Brand Support Program
Expanding into New Markets with Localized Brand Expanding into New Markets with Localized Brand
Customized Support for SME BrandCustomized Support for SME Brand
Full support from hiring a brand designer to trademark registration
Providing expertise of KIPO, KOTRA and University for developing high-quality brand
Providing local brand strategy consulting and supporting brand development and registration
Support for development and registration of localized brand based on local languages, cultures, and environments.
From Brand Strategy to RegistrationFrom Brand Strategy to Registration
ResultsResultsIn 2008, 5 companies benefitedIn 2009, requested from 57
In 2008, 5 companies benefitedIn 2009, requested from 57
3737
Success of Buwon Success of Buwon
l 1-day home shopping sales increased 20x : 40 units (’08.12) → 800 units (’09.2)l Requests for sale from home shopping outlets : 1 outlet (’08.12) → 30 outlets (’09.2)
l 1-day home shopping sales increased 20x : 40 units (’08.12) → 800 units (’09.2)l Requests for sale from home shopping outlets : 1 outlet (’08.12) → 30 outlets (’09.2)
Result of the BuwonResult of the Buwon
Before Before AfterAfter
Buwon EleBuwon Elec.c.
3838
Best Practice of SMEs IP Management in Korea - Best Practice of SMEs IP Management in Korea - MBI
Negotiating licensing out with a Japanese company Negotiating licensing out with a Japanese company
MBI: R &D of Bike PartsMBI: R &D of Bike Parts
MBI Co. Ltd.: Very small company specialized in bike parts with only 6 employees, and almost zero sales
Developed a breakthrough of internal transmission, having 3-speed hub gear through long R&D for10 years
KIPO subsidized $20,000 for international patent applications in U.S. Japan, China, Europe and Russia
KIPO: Support for Int’l ApplicationsKIPO: Support for Int’l Applications
Holding patents for internal transmission in about 40 countries
Won a patent invalidation litigation with Shimano, a Japanese major bike maker
Negotiating licensing out with Shimano, claiming 700 million dollars as royalty
3939
5. Recommendation and Suggestion 5. Recommendation and Suggestion
4040
Incorporate and Transform Good Foreign IP System Into
Its Domestic Version
e.g. First Patent Law (1946), Chemical Compound Patent (1987)
Enhance the IP Awareness e.g. Invention Protection Act (1958), IIPTI (1987)
Collection of Lots of Foreign Patent Information
Recommended Strategy to Be an IP-centered Country (1)Recommended Strategy to Be an IP-centered Country (1)
Beginning Stage
4141
Strengthen IP Automation Infrastructure
e.g. First Internet-based e-Filing System (1999)
Encourage IP Commercialization e.g. Consulting Center on IP Commercialization (1994)
Design Around Dominant Foreign Patents
Recommended Strategy to Be an IP-centered Country (2)Recommended Strategy to Be an IP-centered Country (2)
Intermediate Stage
4242
Encourage International Applications
e.g. Subsidizing International Patent Application (1982),
PCT ISA/IPEA (2002)
Enhance IP Management e.g. Patent Map (2004), Regional IP Consulting Center (2004)
Select and Focus its Own Strong Industry with IPe.g. IT Industry (2000s)
Recommended Strategy to Be an IP-centered Country (3)Recommended Strategy to Be an IP-centered Country (3)
Advanced Stage
4343
Conclusion: Pop-up QuizConclusion: Pop-up Quiz
Which one do you think is not protected by patent?
A: Cell Phone B: Car C: Segaway D: Corn Plant
4444
Thank you!Thank you!
For further enquires contact [email protected]
Thank you!Thank you!
For further enquires contact [email protected]
