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Developing a National IP Action Plan for building the capacity

Developing a National IP Action Plan for building the capacity of Entreneurs and SMEs to make effective use of the IP system. March 18, 2008. AHN Jae-Hyun Senior Director. IP Policy Division Korean Intellectual Property Office. Contents. Importance of IP Management of SMEs

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Developing a National IP Action Plan for building the capacity

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  1. Developing a National IP Action Plan for building the capacity of Entreneurs and SMEs to make effective use of the IP system March 18, 2008 AHN Jae-Hyun Senior Director IP Policy Division Korean Intellectual Property Office

  2. Contents Importance of IP Management of SMEs Current Status of IP Management of SMEs in Korea National IP Action Plan of Korea to help SMEs

  3. Contents Importance of IP Management of SMEs Current Status of IP Management of SMEs in Korea National IP Action Plan of Korea to help SMEs

  4. Importance of IP Management of SMEs Knowledge-based Economy More R&D investment  Effective R&D through IP system   More IPRs  Stronger competitiveness IPRs : Sources of competitiveness Large enterprise : Bitter experience of IPR infringements  Good awareness on the importance of IPR  Active IP strategy and IP management SMEs : Lack of awareness on IPR, Shortage of fund and professional staff  No IP strategy , no IP mg’t

  5. Help SMEs invest in R&D  help them make R&D more effective through search for prior art  help them get more IPRs  help them exploit IPRs  enhancing competitiveness • Importance of IP Management of SMEs Gov’t R&D SMEs IPR Enhancing technical competitiveness Mgt for connecting R&D and IPR

  6. Importance of IP Management of SMEs Current Status of IP Management of SMEs in Korea National IP Action Plan of Korea to help SMEs Contents

  7. Increase of SMEs to Produce leading goods <Trend of the number of leading goods by size of enterprises> • Current Status of IP Management of SMEs Strengths and Opportunities Over 2/3 of manufacturers to produce leading goods in the global market are SMEs since 2003.

  8. Constant increase of SMEs to develop essential technology Constant increase of R&D centers of SMEs 42.1% ’99 ’05 • Current Status of IP Management of SMEs • Constant increase of medium sized corporations( 50~299 employees) • to produce parts and materials Source : Korean Statistics Administation - R&D centers set up by SMEs have exceeded 10 thousand since 2005. 46.9% 14,014 12,398 10,894 8,927 8,217 ‘01 ‘03 ‘05 ‘06 ‘07

  9. Constant increase of patent filings and registrations by SMEs Patent filings Patent registrations • Current Status of IP Management of SMEs 20,597 18,661 13,895 14,966 13,088 15,093 12,705 11,969 ’02 ’03 ’05 ’04

  10. Lack of search for prior art to avoid duplicate R&D Korean SMEs are weak against a patent offensive by foreign companies due to the lack of a defensive strategy and competitive essential patents. • Current Status of IP Management of SMEs Weaknesses and Threats Many SMEs modify anR&D project (53.1%) or stop it (14.6%) after investment due to a prior art. <‘05, Korea Industrial Technology Association>

  11. Lack of incentive for invention by employee • Current Status of IP Management of SMEs 29.8% 20.6% Only 29.3% SMEs gives compensation for employee inventions *Large firms : 75.0% 20.6% SMEs have ever lost industrial secrets due to the lack of proper incentives for employee inventions. <’07> <’06>

  12. Lack of CEO’s IP awareness and an IP strategy • Most SMEs are suffering from royalty deficits by over 4 times. • Average royalty income : 17 million KRW • Average royalty expenditure : 76 million KRW Lack of profit from patents Most SMEs are lack of an IP strategy against a patent dispute with a large firm home or abroad. - 24% SMEs have experienced patent disputes for the last 3 years. Due to lack of commercializing funds and difficulty in marketing etc. SMEs have difficulty in getting profit from IPRs and investing R&D. • Current Status of IP Management of SMEs A Korean SME to produce DMB paid huge amount of royalty to an American company on receipt of ‘warning letter against patent infringement’ without thorough investigation into scope of the patent.

  13. Lack of IP specialized team and staff IP specialized staff : average 2.3 persons (07) Large firms : 3.7 persons IP specialized team : 9.4% (07) Large firms: 20.6% Lack of education and training IP specialist ＞ 160 million 35 million • Current Status of IP Management of SMEs 9.4% Patent filings & registrations Education & training

  14. Importance of IP Management of SMEs Current Status of IP Management of SMEs in Korea National IP Action Plan for SMEs in Korea Contents

  15. Making R&D effective thru systematic use of patent information Search for prior art before launch of a R&D project - avoid duplicate R&D, thereby saving money and time - Further develop a technical idea Free patent information service (KIPRIS) - Expand the patent information DB - Customized patent information service - Link to popular Internet portal sites such Naver, Empas • National IP Action Plan for SMEs in Korea 1. Making R&D Effective to Create More IPRs 1,200 787 ‘06 ‘07 60million 54million Strategic R&D projects ‘06 ‘07 Patent information DB

  16. Patent map and patent dispute map - Help SMEs make a strategy for preventing patent disputes and cope with them - Analyze IPR dispute cases between ROK and major countries such as US, EU and JP * Offer DB of patent infringement cases in the federal courts and CAFC (’07) * www.patentmap.or.kr Unified patent information service - Open a website providing various kinds of patent information services Analysis of patent information • National IP Action Plan for SMEs in Korea 1. Making R&D Effective to Create More IPRs Guide for development of essential technologies Prevention of patent disputes SMEs

  17. Inducement of development of essential technologies Enhancement of awareness of brand and design • National IP Action Plan for SMEs in Korea Expansion of employee invention system as catalyst of innovation Preferential Treatment in Various support Explanatory Meetings, seminars 개정 직무발명제도 설명회 개최 Expansion of a Best practice, Tax exemption of compensation for emp. inventions Analyze international and domestic trademark applications and registrations and offer to SMEs to help make a brand and design strategy Develop and offer design maps to help SMEs develop a good design and prevent design disputes

  18. Assistance of SMEs to acquire IPRs of the results of R&D Most speedy patent examination In the world (’07 : 9.8 month) • Economic effect : 2.4 trillion KRW • ( Korea Institute for Industrial Economics & Trade, ‘06) - JPO will give preferential treatment to the filings from Korean applicants that have been filed with both Korean and Japanese Patent Office. • National IP Action Plan for SMEs in Korea 2. Speedy acquisition of IPRs Speedy acquisition of IPRs Shortening of life cycle 「Highway for patent examination between Korea and Japan」(‘07.4) - Help Korean SMEs speed up acquisition of Japanese patents Speedy examination (9.8 mth) Preferential speedy examination for the filings by tech.-innovative SMEs

  19. Reduction of cost for promoting acquisition of IPRs Promoting international applications of outstanding inventions • 3 million KRW per filing • Excellent invention : 6 million KRW • National IP Action Plan for SMEs in Korea Fee exemption Support for filings abroad • Medium sized firms : 50% • Small sized firms : 70% 6 mil. 2.5mil. 3 mil. ‘05 ‘06 ‘07 Max amount per filing

  20. Support for commercialization of IPRs “Council for Commercialization of Patented Technologies” composed of several ministries : 263 billion KRW (’06)277 billion KRW (’07) Shortage of fund Marketing and sales • National IP Action Plan for SMEs in Korea 3. Commercialization of IPRs 52% SMEs’ obstacle against commercialization of IPRs 26% ’06 : KIPO’s survey

  21. (Amount of loan secured against patents, billion KRW) • National IP Action Plan for SMEs in Korea Secured loan against patents - Help SMEs which lack in capability of security against tangible assets to get more loan secured against a patented technology 76 8.6 52.4 ‘05 ‘06 ‘07 Establishment of ‘Fund of fund’(‘06~’07, Total110 billion KRW) : Invest SMEs or venture companies with excellent patented technology

  22. *Up to 30 million (’06) 50 million (’07) per SME Support for marketing patented goods * Sales are on the rise year by year ( Million KRW) 5200 6300 7000 ‘05 ‘06 ‘07 • National IP Action Plan for SMEs in Korea Strengthening the support for making a prototype of a patent made by SMEs ‘E-commerce system’ for patented goods was set up to help SMEs that lack in capitals and marketing skills.

  23. The patented goods recommended for preferential procurement by KIPO are exempted from valuation test for NEP (New Excellent Product). • A product with a NEP can benefit • from various government supports. • National IP Action Plan for SMEs in Korea Improvement of preferential procurement of patented goods Preferntial procurement NEP Testing Agency • NEP : Certification mark given to a new • excellent product by the Korean • Agency for Technology and • Standard. • Click to add Text • Click to add Text • Click to add Text

  24. Establishment of the valuation system of a patent 79.4% of the result of the valuation of a patent are useful for financing, sales of the technology, certification or marketing. (02~06) • Sharing knowledge and skills between valuation agencies • Training valuation experts through seminars, symposia etc. • Making a guideline for valuation and a report of valuation • National IP Action Plan for SMEs in Korea Support for valuation of a patent : Help SMEs borrow money from a bank, transfer the patent or promote marketing of the patented product. >> 79.4% Strengthening of the credibility of the valuation

  25. Establishment of a demander-oriented transaction system A demander-oriented transaction system was established to promote transaction of patents. • National IP Action Plan for SMEs in Korea Patent auction system (07) Survey of demanded technology Patent transaction experts - Patent transaction experts help and promote the patent transactions • Reduce the cost of search for demanded technology • Higher rate of success of patent transaction through online negotiation • Conduct a survey of demand of technology • Search for fitting technology • Offer a customized consultation for transaction of patents.

  26. More than 700 of state-owned patents that are not licensed over • 3 years are offered to SMEs for free licensing for up to 2 years. • National IP Action Plan for SMEs in Korea Establishment of 「Comprehensive Information System for Commercialization and Transfer of Patented technology 」(website) : Offer comprehensive information on governmental support programs such as valuation of technology, loans of commercializing fund etc. ‘Free license of state-owned patents to SMEs

  27. Consistent development of an IP action plan to help SMEs build IP capacity • Enhancement of the quality of patents by SMEs • National IP Action Plan for SMEs in Korea Future Policy Direction • Enlargement of customized support to SME • Maximization of the policy effect by strengthening of link between various support programs

  28. Thank you! ^^

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