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WIPO Asia Regional Workshop on IP for Managers and Staffs of SMEs and SME Support Institutions. Intellectual Property Strategy for SMEs - KIPO’s Supporting Programs for SMEs -. Jong-Hyub CHOI Director General Intellectual Property Tribunal Korean Intellectual Property Office. Contents. 1.
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WIPO Asia Regional Workshop on IP for Managers and Staffs of SMEs and SME Support Institutions Intellectual Property Strategy for SMEs - KIPO’s Supporting Programs for SMEs - Jong-Hyub CHOI Director General Intellectual Property Tribunal Korean Intellectual Property Office http://in2smile.bnz.co.kr
Contents 1 Introduction 2 Importance of SMEs in Korea 3 4 Promote greater use of IP 5 Challenges for the future Promote the creation & acquisition of IP http://in2smile.bnz.co.kr - 1 -
Introduction The 21st century: Era of Knowledge and information - IP is vital in the activities of enterprises (especially SMEs) - Shift in requirements for creating added-value: labor & capital knowledge & information Importance of intellectual property - From a national point of view, creation & use of IP is essential - A recent report of the Korea Development Institute Increase of 1% (national patent applications) Increase of 0.11% (national growth) 1. Changes in the economic environment http://in2smile.bnz.co.kr - 2 -
Introduction To Complete the cycle of value-added creation Protection of IP Use and trade patented technology Rapid and correct acquisition of right Commercialization of IP Acquisition & Creation of IP Creation of new technology & revenue 2. KIPO’s main IP strategy http://in2smile.bnz.co.kr - 3 -
Importance of SMEs in Korea SMEs drive the national economy • Number of SMEs: 99.8 % of all companies • Employees: 86.7 % of all employees SMEs’ role is emphasized more than ever: they can quickly and flexibly respond to rapid changes in the global economy 1. Current status of SMEs in Korea http://in2smile.bnz.co.kr - 4 -
Importance of SMEs in Korea Ownership ratio of SMEs * 20 % of all IPRs Only 7 % of SMEs own more than one IPR Lack of human resources and inadequate funding and marketing, especially IP creation 2. How many IPRs are owned by SMEs http://in2smile.bnz.co.kr - 5 -
Importance of SMEs in Korea Survey contents SMEs Big enterprises Case of patent holding PA T EN T 19 (cases) 224 (cases) Rate of Commercialization 30 % 50 % 20 % Success rate of registered rights 22 % 3. Survey on the commercialization of patented technology The basic data for IPR policy on increasing the use of patented technology http://in2smile.bnz.co.kr - 6 -
Importance of SMEs in Korea Overall difficulties • Insufficient funds (34%) • Marketing (19%) • Counterfeiting (12%) • R&D staff (10%) • Examination period (9%) 4. Difficulties in using patented technology Significant for our policy on the commercialization of patents http://in2smile.bnz.co.kr - 7 -
KIPO’s support for SMEs 1. To promote creation & acquisition of IP 2. To promote greater use of IP http://in2smile.bnz.co.kr - 8 -
Nation wide explanatory meetings on IPRs Target: top managers, executives, officials, IPR-related staff ..etc. Topics : importance of IPRs, application procedures, government programs that support creation of IP Supporting IP training programs for SMEs at the International Intellectual Property Training Institute Creation & Acquisition of IP 1. IPR Acquisition Campaign for SMEs http://in2smile.bnz.co.kr - 9 -
Providing a free public service for searching patent information The service offers information on the Internet For all IP-related fields such as patents, utility models, industrial designs and trademarks Web site: KIPO <http://www.kipo.go.kr> KIPI <http ://www.kipi.or.kr> Creation & Acquisition of IP 2. Information service on patented technology (1) http://in2smile.bnz.co.kr - 10 -
Production and distribution of patent maps • Since 2000, 120 patent maps have been produced • Patent Maps are distributed free of charge to SMEs and research institutes in the form of CD-ROMs and booklets Used for formulating R&D strategy and policies on industrial technology Creation & Acquisition of IP 2. Information service on patented technology (2) Patent maps are designed to analyze patented technology and to show trends in technology development http://in2smile.bnz.co.kr - 11-
KIPO provides IP consultation • For individuals and SMEs • Provide appropriate advice before investing in R&D Consultation procedure KIPO designated 25 specialized institutes KIPO itself supports 20-40 cases every year KIPO assists with 75 % of the cost (up to ₩15 million) Creation & Acquisition of IP 3. IP consultation service http://in2smile.bnz.co.kr - 12 -
Greater use of IP Goal: To promote greater use of IP Transfer Financial aid Marketing Patentee Principle Support varies according to the patentee's ability, financial condition etc. Basic principle of support http://in2smile.bnz.co.kr - 13 -
Greater use of IP Facilitates transaction between technology consumers and providers through the Internet Database of 55,000 items of patented technology Http:// www.patentmart.or.kr/english Permanent Patented Technology Market (off-line) 1. Patented Technology trade market IP-mart (on-line) Located on the 3rd floor of the Korea Invention Promotion Association selection and exhibition of items registered at the IP- mart Three specialist agencies provide information on market, industry trend and standard contracts http://in2smile.bnz.co.kr - 14 -
Greater use of IP Infrastructure for transferring & commercializing patented technology Technical evaluation - 29 designated institutions - performance, efficiency, safety of invention Economic evaluation - 12 designated institutions - market value, potential of commercialization Evaluation cost Up to 80 % of evaluation cost is subsidized for individuals and SMEs 2. Evaluation of patented technology http://in2smile.bnz.co.kr - 15 -
Greater use of IP Legal base The act of invention promotion Objective Integration and cooperation of commercialization support programs from the government sector Financial support in 2003 Total: ₩179 billion (U$149 million) 3. Committee on Patented Technology Commercialization http://in2smile.bnz.co.kr - 16 -
Greater use of IP Participants • Ministry of Commerce, Industry & Energy • Korean Intellectual Property office • Small & Medium Business Administration • Ministry of Agriculture & Forestry • Ministry of Maritime Affairs & Fisheries • Rural Development Administration / Korea Forest Service Major tasks Upgrade and maintain the systems related to commercialization of patented technology Determine a comprehensive support strategy and scale Coordinate the various policies of government sectors 3. Committee on Patented Technology Commercialization http://in2smile.bnz.co.kr - 17 -
Greater use of IP Support for producing a prototype of patented technology After evaluation of the technical and commercial potential, we assist individuals and SMEs by subsidizing up to 80 % of the cost of the prototype. Commercialization rate of the program’s beneficiaries is about 70 % Financial support for overseas IP applications To acquire overseas IPRs for active international business Subsidies up to ₩2 million (about $1,700) per case 4. Programs of financial support http://in2smile.bnz.co.kr - 18 -
Greater use of IP Venture capital fund for patented technology commercialization In cooperation with venture capitalists: - The Korea Development Bank - The Kibo Technology Advancing Capital Co. Mainly invested in SMEs with promising patent technology 5. Venture capital fund http://in2smile.bnz.co.kr - 19 -
Greater use of IP SMEs are poor in marketing capability KIPO's marketing assistance: Exhibition for superior patented products Publicity for superior patented products - eg) The top one hundred Superior Patented Products Selection 6. The marketing of patented products (1) • - Marketing strategy is vital for commercial success http://in2smile.bnz.co.kr - 20 -
Greater use of IP Operation of a cyber shopping mall - for selling patented products (opens in Oct. 2004) Priority purchase recommendation program Superior inventions are recommended for purchase by national and local governmental organizations and government-funded organizations Publicizing cases which successfully commercialize superior patented technology 6. The marketing of patented products (2) http://in2smile.bnz.co.kr - 21 -
Challenges for the future Strengthening the infrastructure for creating and using IP - Less direct financial support - More studies on new IP policies Close cooperation with related offices - to overcome financial limits - to enlarge the extent of support - to introduce many programs for SMEs http://in2smile.bnz.co.kr - 22 -
Thank You http://in2smile.bnz.co.kr - 23 -