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Jae-Hong Baek Deputy Director Technical Cooperation Division

Korean National Experience on Building Intellectual Property Awareness and Capacity of Small and Medium-sized Enterprises. July 30, 2008. Jae-Hong Baek Deputy Director Technical Cooperation Division. Korean Intellectual Property Office. Contents.

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Jae-Hong Baek Deputy Director Technical Cooperation Division

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  1. Korean National Experience on Building Intellectual Property Awareness and Capacity of Small and Medium-sized Enterprises July 30, 2008 Jae-Hong Baek Deputy Director Technical Cooperation Division Korean Intellectual Property Office

  2. Contents 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

  3. Korea : Past and Present 2007 1957 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

  4. I. Importance of IPin the knowledge-Based Society • 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.

  5. I. Importance of IPin the knowledge-Based Society • IPRs : Sources of Wealth and Competition • Patents and trademarks can create enormous property value and high added value. • Knowledge and ideas have become sources of wealth and strong competitiveness through the monopolistic and exclusive nature of intellectual property rights. * Vastroyalty 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.

  6. I. Importance of IP in the knowledge-Based Society • Promotion of Continuous Technological Innovation • 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. • 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.

  7. Acquisition of IP Rights Exploitation & Protection of IPR Creation of IP I. Importance of IP in the knowledge-Based Society • Virtuous Cycle of Intellectual Property Commercialization & Transfer of patents Speedy & Correct examination Financing

  8. Source : WIPO Statistics Database Ⅱ. Current Status of Korea in the IP Field Top 20 Offices of Patent Filingsin 2005

  9. Ⅱ. Current Status of Korea in the IP Field Patent Filings by Residents in 2005 Source : WIPO Statistics Database

  10. Ⅱ. Current Status of Korea in the IP Field Resident Patent Filings per Million Population in 2005 (Korea : 2,530 Ranking 2 ) Source : WIPO Statistics Database

  11. Ⅱ. Current Status of Korea in the IP Field Resident Patent Filings per Billion dollars GDP (Korea : 129 Ranking 1) Source : WIPO Statistics Database and World Bank-World Development Indicators

  12. Ⅱ. Current Status of Korea in the IP Field Resident Patent Filings per Million $ R&D Expenditures (Korea : 5.08 Ranking 1) Source : WIPO Statistics Database

  13. Ⅱ. Current Status of Korea in the IP Field Patents Granted by Office in 2005 (Korea Ranking 3) Source : WIPO Statistics Database

  14. Ⅱ. Current Status of Korea in the IP Field Patents Granted by Country of Origin in 2005 Source : WIPO Statistics Database

  15. Ⅱ. Current Status of Korea in the IP Field

  16. III. Enhancement of IP Awareness and Capacity of SMEs 1. Consultation, Education and Training 2. Support for Creating Intellectual Property 3. Support for Exploiting Intellectual Property 4. Support for Protecting Intellectual Property

  17. III. Enhancement of IP Awareness and Capacity of SMEs 1. Consultation, Education and Training 2. Support for Creating Intellectual Property 3. Support for Exploiting Intellectual Property 4. Support for Protecting Intellectual Property

  18. III. Enhancement of IP Awareness and Capacity of SMEs 1. Consultation, Education and Training • Comprehensive Consultation for Local SMEs • 29 local IP Centers were set up nationwide, which provide local 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.

  19. III. Enhancement of IP Awareness and Capacity of SMEs 1. Consultation, Education and Training • 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.

  20. III. Enhancement of IP Awareness and Capacity of SMEs 1. Consultation, Education and Training • 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).

  21. III. Enhancement of IP Awareness and Capacity of SMEs 1. Consultation, Education and Training • 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.

  22. III. Enhancement of IP Awareness and Capacity of SMEs 1. Consultation, Education and Training • 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.

  23. III. Enhancement of IP Awareness and Capacity of SMEs 1. Consultation, Education and Training • 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.

  24. III. Enhancement of IP Awareness and Capacity of SMEs 1. Consultation, Education and Training 2. Support for Creating Intellectual Property 3. Support for Exploiting Intellectual Property 4. Support for Protecting Intellectual Property

  25. III. Enhancement of IP Awareness and Capacity of SMEs 2. Support for Creating Intellectual Property • Patent Fee Exemption • KIPO offers SMEs a 50~70% exemption of patent fees to facilitate patenting activities. • Small companies : 70% exemption • Medium-sized companies : 50% exemption • Disabled inventors : 100% exemption

  26. III. Enhancement of IP Awareness and Capacity of SMEs 2. Support for Creating Intellectual Property • 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.

  27. III. Enhancement of IP Awareness and Capacity of SMEs 2. Support for Creating Intellectual Property • Support for Filing Patents Overseas • SMEs are given financial support to file more patent applications overseas. • Max. four million Korean won per filing • Up to three filings per enterprise • The invention should meet the good-quality requirements.

  28. III. Enhancement of IP Awareness and Capacity of SMEs 1. Consultation, Education and Training 2. Support for Creating Intellectual Property 3. Support for Exploiting Intellectual Property 4. Support for Protecting Intellectual Property

  29. III. Enhancement of IP Awareness and Capacity of SMEs 3. Support for Exploiting Intellectual Property • 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.

  30. III. Enhancement of IP Awareness and Capacity of SMEs 3. Support for Exploiting Intellectual Property • 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.

  31. III. Enhancement of IP Awareness and Capacity of SMEs 3. Support for Exploiting Intellectual Property • Support for E-commerce of Patented Products of Good Quality • We set up an internet shopping mall (www.buyinvention.com) for the sale of patented products made by SMEs.

  32. III. Enhancement of IP Awareness and Capacity of SMEs 3. Support for Exploiting Intellectual Property • 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.

  33. III. Enhancement of IP Awareness and Capacity of SMEs 3. Support for Exploiting Intellectual Property • 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 invention exhibition.

  34. III. Enhancement of IP Awareness and Capacity of SMEs 3. Support for Exploiting Intellectual Property • Support for the valuation of Patented Technologies • Max. 80% of the valuation cost are subsidized, not exceeding 30 million Korean 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.

  35. III. Enhancement of IP Awareness and Capacity of SMEs 3. Support for Exploiting Intellectual Property • 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.

  36. III. Enhancement of IP Awareness and Capacity of SMEs 1. Consultation, Education and Training 2. Support for Creating Intellectual Property 3. Support for Exploiting Intellectual Property 4. Support for Protecting Intellectual Property

  37. III. Enhancement of IP Awareness and Capacity of SMEs 4. Support for Protecting Intellectual Property • Free Consultations on IPR Infringements • KIPO provides SMEs with free-of-charge consultations on IPR infringements in cooperation with the Korea Patent Attorneys Association (KPAA). • KIPO also assists SMEs by offering a patent map on patent infringements. The patent map helps SMEs cope with patent infringements overseas.

  38. IV. Conclusion • 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!

  39. Thank you! Jae-hong Baek tultuly100@kipo.go.kr

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