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Building IP Awareness & Capacity for Korean SMEs

This article explores the importance of intellectual property in a knowledge-based society and discusses policies and measures to enhance IP awareness and capacity for small and medium-sized enterprises (SMEs) in Korea.

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Building IP Awareness & Capacity for Korean SMEs

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  1. Korean National Experience on Building Intellectual Property Awareness and Capacity of Small and Medium-sized Enterprises March 18, 2008 AHN Jae-Hyun Senior Director Industrial Property Policy Division Korean Intellectual Property Office

  2. Contents I. The Importance of IP in the Knowledge-Based Society II. The Current Status of Korea in the IP Field III. Polices for Building Intellectual Property Awareness and Capacity of Small and Medium-sized Enterprises IV. Conclusion

  3. The Past and the Present of Korea

  4. I. The Importance of IP in the knowledge-Based Society • Rapid Change from Industrial Society to the Knowledge-Based Society • The development and securing of new innovative technologies, including IT, BT, and NT, are sources of creating national wealth, •      not just means of acquiring wealth. • * Price per 1g: 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. The Importance of IP in the knowledge-Based Society • Knowledge and Technology Can Be Sources of Wealth and Competition • Creating Enormous Property Value and High Added Value through Patents and Trademarks • Knowledge and ideas have become sources of wealth and strong competitiveness through monopolistic and exclusive rights granted by intellectual property rights. * An enormous amount of royalty and sales revenue has been acquired from establishing licenses or transferring rights. * In the U.S., one of the strong powers on intellectual property, more than 50% of its export     has direct relation to intellectual property rights

  6. I. The Importance of IP in the knowledge-Based Society • Promoting Continuous Technological Innovation • Building an Infrastructure of Intellectual Property for Improving the National Competitiveness • Without an IPR protection system, entrepreneurs would avoid investing in technological innovation and the R&D, which requires a long-term investment of a large amount of capital, resulting in loss of creativity. • Inducing Foreign Direct Investment and Technology Transfer • Foreign enterprises that possess advanced technologies can be induced to make a direct investment and transfer their technologies in a country where IPRs are properly protected

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

  8. Ⅱ. The Current Status of Korea in the IP Field Top 20 Offices of Patent Filingsin 2005

  9. Ⅱ. The Current Status of Korea in the IP Field Patent Filings by Residents in 2005

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

  11. Ⅱ. The Current Status of Korea in the IP Field • Resident Patent Filings per Billion dollars GDP (Korea : 129 Ranking 1)

  12. Ⅱ. The Current Status of Korea in the IP Field • Resident Patent Filings per R&D Expenditures ( Korea : 5.08 Ranking 1)

  13. Ⅱ. The Current Status of Korea in the IP Field • Patents Granted by Office in 2005 (Korea Ranking 3)

  14. Ⅱ. The Current Status of Korea in the IP Field • Patents Granted by Country of Originin 2005

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

  16. III. Polices for Building IP Awareness and Capacity of SMEs 1. The Importance of Small and Medium-Sized Enterprises 2. Consultation, Education and Training 3. Supports for Creating Intellectual Property 4. Supports for Exploiting Intellectual Property 5. Supports for Protecting Intellectual Property

  17. III. Polices for Building IP Awareness and Capacity of SMEs 1. The Importance of Small and Medium-Sized Enterprises 2. Consultation, Education and Training 3. Supports for Creating Intellectual Property 4. Supports for Exploiting Intellectual Property 5. Supports for Protecting Intellectual Property

  18. III. Polices for Building IP Awareness and Capacity of SMEs 1. The Importance of Small and Medium-Sized Enterprises • SMEs account for 99.8% of companies in Korea, and employ 10 million workers, which are 88.6% of corporate employees • SMEs have only 60-70% of technical competitiveness of Korean conglomerates and 40-50%of technical competitiveness of companies in advanced countries.

  19. III. Polices for Building IP Awareness and Capacity of SMEs 1. The Importance of Small and Medium-Sized Enterprises 2. Consultation, Education and Training 3. Supports for Creating Intellectual Property 4. Supports for Exploiting Intellectual Property 5. Supports for Protecting Intellectual Property

  20. III. Polices for Building IP Awareness and Capacity of SMEs 2. Consultation, Education and Training • Comprehensive Consultation for Local SMEs • Set up 29 local IP Centers nationwide, which provide local SMEs with IP consultations, patent information services and educational programs • KIPO cooperates with 13 metropolitan local governments aimed at enhancing 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 local brand strategies

  21. III. Polices for Building IP Awareness and Capacity of SMEs 2. Consultation, Education and Training • Nurturing “Star Companies” • Select several SMEs in each metropolitan local area (province), which have made inventions of good quality • Provide them with comprehensive supports including patent information services, consultations and supports for patent filing • Nurture them into “Star Companies” that can lead the local industry

  22. III. Polices for Building IP Awareness and Capacity of SMEs 2. Consultation, Education and Training • Customized IP Consultations • KIPO’s examiners visit SMEs on request to provide customized consultations on IP • Including diagnosis on IP management and consultations on how to search prior arts, how to make a good patent application (description or drawing and claim) etc.

  23. III. Polices for Building IP Awareness and Capacity of SMEs 2. Consultation, Education and Training • Public Patent Attorneys Center • KIPO cooperates with the Korean Patent Attorneys Association (KPAA) in running “ the Public Patent Attorneys Center” • It provides free consultations on IP to individual inventors and small enterprises

  24. III. Polices for Building IP Awareness and Capacity of SMEs 2. 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 • Providing systematic education for not only KIPO’s employees but also people from private sector including SMEs • IIPTI is running several IP training courses for foreigners

  25. III. Polices for Building IP Awareness and Capacity of SMEs 2. Consultation, Education and Training • Customized Cyber Education • KIPO is running “Cyber IP Academy” to provide SMEs with customized training courses and contents on IP free of charge • Contributing to building capacity on IP SMEs

  26. III. Polices for Building IP Awareness and Capacity of SMEs 1. The Importance of Small and Medium-Sized Enterprises 2. Consultation, Education and Training 3. Supports for Creating Intellectual Property 4. Supports for Exploiting Intellectual Property 5. Supports for Protecting Intellectual Property

  27. III. Polices for Building IP Awareness and Capacity of SMEs 3. Supports for Creating Intellectual Property • Patent Fee Exemption • KIPO provides SMEs with 50~70% of patent fee exemption to facilitate more patenting activities with less burden • Small companies : 70% exemption • Medium-sized companies : 50% exemption • Disabled inventors : 100%

  28. III. Polices for Building IP Awareness and Capacity of SMEs 3. Supports for Creating Intellectual Property • Expand the ‘Reward System for Employee Inventions’ • Most inventions are created by companies and research institutes by employees • 83.7% of patent applications in 2006 were filed by legal entities employee inventions. • To expand infrastructure for creating IP, it is essential to fairly reward employees for their inventive activities

  29. III. Polices for Building IP Awareness and Capacity of SMEs 3. Supports for Creating Intellectual Property • Supports for Filing Patents Overseas • Help SMEs 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

  30. III. Polices for Building IP Awareness and Capacity of SMEs 1. The Importance of Small and Medium-Sized Enterprises 2. Consultation, Education and Training 3. Supports for Creating Intellectual Property 4. Supports for Exploiting Intellectual Property 5. Supports for Protecting Intellectual Property

  31. III. Polices for Building IP Awareness and Capacity of SMEs 4. Supports for Exploiting Intellectual Property • Background • Inventive activities will contribute to national economy only when the patented technology is eventually used • Only few patented technologies are commercialized • 37% of patents or utility models have been commercialized (2006) • Only 20% of them have achieved commercial success

  32. III. Polices for Building IP Awareness and Capacity of SMEs 4. Supports for Exploiting Intellectual Property • Set up the “Council for Commercialization of Patented Technologies” in 1999 • Currently consists of three governmental bodies • KIPO, Ministry of Knowledge Economy and SME Administration • It coordinates and implements various ministries’ supporting programs for commercializing patented technologies • Raising the commercializing funds and investing or loaning to SMEs

  33. III. Polices for Building IP Awareness and Capacity of SMEs 4. Supports for Exploiting Intellectual Property • Supports for E-commercing Patented Products of Good Quality • Running an internet shopping mall (www.buyinvention.com) • Selling lots of patented products made by SMEs on the cyber mall

  34. III. Polices for Building IP Awareness and Capacity of SMEs 4. Supports for Exploiting Intellectual Property • Recommendation of Patented Products of Good Quality for Government Procurement • Recommending the inventions to central governments, local governments and state-running agencies • The patented goods can have the preference in government procurement

  35. III. Polices for Building IP Awareness and Capacity of SMEs 4. Supports for Exploiting Intellectual Property • Awards for Excellent Inventions • Selecting 50 SMEs that have made excellent inventions twice a year • Conferring government awards upon them • Providing them with a free booth at an invention exhibition

  36. III. Polices for Building IP Awareness and Capacity of SMEs 4. Supports for Exploiting Intellectual Property • Supports for Appraising the Value of Patented Technologies • Subsidizing evaluation of the value of patented technologies • Max. 80% of the evaluation cost, not exeeding 30 million Korean won per enterprise

  37. III. Polices for Building IP Awareness and Capacity of SMEs 4. Supports for Exploiting Intellectual Property • Running An Internet IP Mart for Transferring Patented Technologies (www.ipmart.or.kr) • Promoting the transfer of patented technologies by connecting the supplies with the demander • Anybody can search a wanted-technology online in the website containing the database of 52,000 patents

  38. III. Polices for Building IP Awareness and Capacity of SMEs 4. Supports for Exploiting Intellectual Property • Organizing an Off-line IP Mart for Promoting Sales of Patented Goods and Technologies • Exhibiting and advertizing patented products and technologies • Professional consultants for technology transfer help to transfer patented technologies

  39. III. Polices for Building IP Awareness and Capacity of SMEs 1. The Importance of Small and Medium-Sized Enterprises 2. Consultation, Education and Training 3. Supports for Creating Intellectual Property 4. Supports for Exploiting Intellectual Property 5. Supports for Protecting Intellectual Property

  40. III. Polices for Building IP Awareness and Capacity of SMEs 5. Supports for Protecting Intellectual Property • Free Consultation on IPR Infringement • KIPO provides SMEs with free-of-charge consultation on IPR infringement in cooperation with the Korea Patent Attorneys Association (KPAA)

  41. III. Polices for Building IP Awareness and Capacity of SMEs 5. Supports for Protecting Intellectual Property • KIPO also assists them with a patent map on patent infringement in order for them to enhance the capability to cope with patent infringement overseas

  42. IV. Conclusion • In this knowledge-based era, intellectual property is a vital factor for economic and social development. • Strong IP policy can attract foreign direct investment from abroad and stimulate inventive activities home, and thereby contribute to development of industry and economy. • Close cooperation between the governments, industries, academia is crucial for promoting invention and innovation. • Korea was one of the poorest countries in the world in 1950’s. In 50 years, Korea is now on the threshold to an advanced country. Many factors such as foreign investment, successful economic policies etc contributed to Korean success. Successful R&D and IP policy, however, is one of the contributors. • I wish Mongol a great success and prosperity

  43. AHN Jae-Hyun iprkorea@empal.com Phone: +82-42-481-5168, Fax: +82-42-472-3464 Thank you!

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