Korean National Experience on Building Intellectual Property Awareness and Capacity of Small and...

Korean National Experience on Building Intellectual Property Awareness and Capacity of Small and

Medium-sized Enterprises

Jae-Hong BaekDeputy Director

Technical Cooperation Division

Korean Intellectual Property Office

July 30, 2008

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ContentsContents

I. Importance of IP in the Knowledge-Based Society

II. Current Status of Korea in the IP Field

III. Enhancement of IP Awareness and Capacity of Small and Medium-sized Enterprises

IV. Conclusion

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Korea : Past and Present Korea : Past and Present

GDP Per Capita : $ 20,060

Exports : $ 371,489 million

Patent filings : 171,731

Techno-intensive Industry - IT products, mobile phone,

semiconductor, car etc.

Ship-building : No.1

GDP Per Capita : $ 74

Exports : $ 22 million

Patent filings : 469

Lack of provisions, food

2007 1957

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Rapid Change from an Industrial Society to a Knowledge-Based Society

The development and securing of new innovative technologies,

including IT, BT, and NT, are sources for creating national

wealth, not just a means of acquiring wealth.

* Price per gram : Gold $ 35, interferon (anticancer drug) $ 5,000

EPO (medication for anemia) $ 670,000

Traditional industry should be converted into high value-added

industry in order to survive and succeed in the global market.

I. Importance of IPI. Importance of IP in the knowledge-Based Societyin the knowledge-Based SocietyI. Importance of IPI. Importance of IP in the knowledge-Based Societyin the knowledge-Based Society

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IPRs : Sources of Wealth and Competition

Knowledge and ideas have become sources of wealth and strong competitiveness through the monopolistic and

exclusive nature of intellectual property rights.

Patents and trademarks can create enormous property value and high added value.

* Vast royalty and sales revenue has been generated from licenses or

the transfer of rights.

* In the US, a powerful IP country, more than 50% of exports are directly

related to intellectual property rights.

I. Importance of IPI. Importance of IP in the knowledge-Based Societyin the knowledge-Based SocietyI. Importance of IPI. Importance of IP in the knowledge-Based Societyin the knowledge-Based Society

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Without an IPR protection system, entrepreneurs would avoid investing in technological innovation and R&D, which require long-term investment of a large amount of capital. The lack of investment results in a loss of creativity.

❒ Promotion of Continuous Technological Innovation

Inducement of Foreign Direct Investment and Technology Transfer

Foreign enterprises that possess advanced technologies can be induced to make a direct investment and transfer their technologies

to a country where IPRs are properly protected.

I. Importance of IP in the knowledge-Based SocietyI. Importance of IP in the knowledge-Based SocietyI. Importance of IP in the knowledge-Based SocietyI. Importance of IP in the knowledge-Based Society

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Virtuous Cycle of Intellectual Property

Exploitation & Protection

of IPR

Exploitation & Protection

of IPR

Creation

of IP

Creation

of IP

Acquisition of

IP Rights

Acquisition of

IP RightsSpeedy &Correct examination

Commercialization & Transfer of patents

Financing

I. Importance of IP in the knowledge-Based SocietyI. Importance of IP in the knowledge-Based SocietyI. Importance of IP in the knowledge-Based SocietyI. Importance of IP in the knowledge-Based Society

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ⅡⅡ. Current Status of Korea in the IP Field. Current Status of Korea in the IP Field ⅡⅡ. Current Status of Korea in the IP Field. Current Status of Korea in the IP Field

Top 20 Offices of Patent Filings in 2005

Source :

WIPO Statistics Database

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Patent Filings by Residents in 2005

Source :



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Resident Patent Filings per Million Population in 2005 (Korea : 2,530 Ranking 2 )

Source :



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Source : WIPO Statistics Database and World Bank-World Development Indicators

Resident Patent Filings per Billion dollars GDP (Korea : 129 Ranking 1)


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Resident Patent Filings

per Million $ R&D

Expenditures

(Korea : 5.08 Ranking 1)

Source :



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Patents Granted by Office in 2005 (Korea Ranking 3)

Source :



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Patents Granted by Country

of Origin in 2005

Source :



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III. Enhancement of IP Awareness and Capacity of SMEsIP Awareness and Capacity of SMEsIII. Enhancement of IP Awareness and Capacity of SMEsIP Awareness and Capacity of SMEs

2. Support for Creating Intellectual Property

3. Support for Exploiting Intellectual Property

4. Support for Protecting Intellectual Property

1. Consultation, Education and Training

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1. Consultation, Education and Training1. Consultation, Education and Training


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Comprehensive Consultation for Local SMEs 29 local IP Centers were set up nationwide, which provide loc

al SMEs with IP consultations, patent information services and educational programs.

KIPO cooperates with 13 metropolitan local governments to enhance IP awareness of local SMEs.

Conducts projects for improving and protecting the value of local brands by registering them as collective marks.

Provides the local governments with consultations on the strategies of promoting local brand.



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Nurturing of “Star Companies”

Select several SMEs from each metropolitan local area (or province), which have made good quality inventions

Provide them with comprehensive support including patent information services, consultations and support for patent filing

“Star Companies” are nurtured for the purpose of leading the local industry.



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Customized IP Consultations

KIPO’s examiners visit SMEs on request to provide

customized consultations on IP

Consultations include diagnosis of IP management and advice

on how to search for prior art and how to prepare a good patent

application (in terms of description or drawings and claims).



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Public Patent Attorneys Center

KIPO runs “ the Public Patent Attorneys Center” in conjunction

with the Korean Patent Attorneys Association (KPAA).

The center offers free IP consultations to individual inventors

and small enterprises.



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IP Education and Training

KIPO set up an IP training center, called the International Intellectual Property Training Institute (IIPTI) in 1987.

The IIPTI offers systematic education for KIPO’s staff and the private sector, including SMEs.

Several IP training courses are designed for international participants.



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Customized Cyber Education

KIPO is running the “Cyber IP Academy”, which provides

SMEs with free customized IP training courses.

Cyber education is one way of enhancing IP capability of

SMEs.



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2. Support for Creating Intellectual Property2. Support for Creating Intellectual Property


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❒ Patent Fee Exemption

KIPO offers SMEs a 50~70% exemption of patent fees to facil

itate patenting activities.

Small companies : 70% exemption

Medium-sized companies : 50% exemption

Disabled inventors : 100% exemption



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❒ Expansion of the ‘Reward System for Employee Inventions’

Most inventions are created by employees working in companies and research institutes.

In 2006, 83.7% of patent applications were filed by legal entities; they are regarded as employee inventions.

To expand the infrastructure for creating IP, it is essential to fairly reward employees for their inventive activities.



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❒ Support for Filing Patents Overseas

SMEs are given financial support to file more patent applicatio

ns overseas.

Max. four million Korean won per filing

Up to three filings per enterprise

The invention should meet the good-quality requirements.



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3. Support for Exploiting Intellectual Property3. Support for Exploiting Intellectual Property


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❒ Background

Inventive activities boost the national economy only when the

patented technology is eventually used.

Only a minority of patented technologies are commercialized.

In 2006, only 37% of patents or utility models were commercialized.

Only 20% of them achieved commercial success.



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The “Council for Commercialization of Patented Technologies” was set up in 1999.

The council consists of three governmental bodies:

KIPO, Ministry of Knowledge Economy, and SME Administration.

It coordinates and implements various ministerial support programs for the commercialization of patented technologies.


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❒ Support for E-commerce of Patented Pro

ducts of Good Quality

We set up an internet shopping mall (

www.buyinvention.com) for the sale of patente

d products made by SMEs.



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❒ Recommendation of Patented Products of Good Quality for Government Procurement

Good inventions are recommended to the central government,

local governments and state-run agencies.

Recommended patented goods can receive preferential

treatment in government procurement.



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❒ Awards for Excellent Inventions

50 SMEs are nominated for their excellent inventions twice

a year.

The nominees receive a government award.

Winners can display their invention in a free booth at an inven

tion exhibition.



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Support for the valuation of Patented Technologies

Max. 80% of the valuation cost are subsidized, not exceeding 30 million Ko

rean won per enterprise.

❒ The Internet IP Mart was set up for the Transfer of Patented Technologies (www.ipmart.or.kr) .

The IP-Mart promotes the transfer of patented technologies by connecting suppliers with demanders.

Anybody can search online for a desired technology in the website containing a database of 52,000 patents.



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An Off-line IP-Mart was established to Promote Sales of Patented Goods and Technologies.

It facilitates exhibitions and advertizing of patented products and technologies.

It offers professional consultants on the transfer of patented technologies.



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4. Support for Protecting Intellectual Property4. Support for Protecting Intellectual Property


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❒ Free Consultations on IPR Infringements

KIPO provides SMEs with free-of-charge consultations on IPR infrin

gements in cooperation with the Korea Patent Attorneys Associatio

n (KPAA).

KIPO also assists SMEs by offering a patent map on patent infringe

ments. The patent map helps SMEs cope with patent infringements

overseas.

4. Support for Protecting Intellectual Property4. Support for Protecting Intellectual Property


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IV. ConclusionConclusionIV. ConclusionConclusion

A strong IP policy can attract foreign direct investment from abroad and stimulate inventive activities at home, thereby boosting the development of the nation’s industry and economy. Close cooperation between the government and industry is crucial for promoting invention and innovation.

Korea was one of the poorest countries in the world in 1950’s. In just 50 years, Korea is now on the threshold of becoming an advanced country. Many factors, such as foreign investment and successful economic policies have contributed to Korea’s success. The key factor, however, is human resources with creativity and their sweat on the brow.

I wish your country success and prosperity!

Thank you!Thank you!

Jae-hong [email protected]

Korean National Experience on Building Intellectual Property Awareness and Capacity of Small and...

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