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WIPO Asia Regional Workshop on IP for Managers and

Staffs of SMEs and SME Support Institutions

Intellectual Property Strategy

- KIPOs Supporting Programs forJong-Hyub CHOI

Director General

Intellectual Property Tribunal

Korean Intellectual Property Office


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Contents

Introduction1

Importance of SMEs in Korea2

3

4

Challenges for the future5

Promote greater use of IP

Promote the creation & acquisition of IP

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Introduction1. Changes in the economic environment

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)

- IP is vital in the activities of enterprises (especially SMEs)

- Shift in requirements for creating added-value:

labor & capital knowledge & information

The 21st century: Era of Knowledge and information

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Introduction

2. KIPOs main IP strategy

To Complete the cycle of value-added creation

Protection

of IP

Commercializationof IP

Acquisition & Creationof IP

Use and trade

patented technology

Creation of new technology & revenue

Rapid and correct

acquisition of right

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Importance of SMEs in Korea

2. How many IPRs are owned by SMEs

Ownership ratio of SMEs

* 20 % of all IPRs

Only 7 %of SMEs own more than one IPR

Lack of human resources and inadequate funding andmarketing, especially IP creation

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3. Survey on the commercialization of patented

technology

The basic data for IPR policy on increasing the use of

patented technology

22 %20 %Success rate of registered rights

50 %30 %Rate of Commercialization

224 (cases)19 (cases)Case of patent holdingPA

TE

N

T

Big enterprisesSMEsSurvey contents

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4. Difficulties in using patented technology

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Significant for our policy on the commercialization

of patents

Overall difficulties

Insufficient funds (34%)

Marketing (19%)

Counterfeiting (12%)

Examination period (9%)

R&D staff (10%)


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KIPOs support for SMEs

1. To promote creation acquisition of IP

2. To promote greater use of IP

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Creation & Acquisition of IP

1. IPR Acquisition Campaign for SMEs

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

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2. Information service on patented technology (1)

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

KIPI

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2. Information service on patented technology (2)

Production and distribution of patent maps

Since 2000, 120 patent maps have been produced

Used for formulating R&D strategy and policies

on industrial technology

Patent Maps are distributed free of charge to SMEs and

research institutes in the form of CD-ROMs and booklets

Patent maps are designed to analyze patented technology

and to show trends in technology development

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3. IP consultation service

KIPO provides IP consultation

Consultation procedure

For individuals and SMEs

Provide appropriate advice before investing in R&D

KIPO designated 25 specialized institutesKIPO itself supports 20-40 cases every year

KIPO assists with 75 % of the cost (up to15 million)

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Greater use of IP

Basic principle of support

Goal: To promote greater use of IP

Patentee

Principle

Support varies according to the patentee's ability,

financial condition etc.

Transfer Financial aid Marketing

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Greater use of IP

1. Patented Technology trade market

IP-mart (on-line)

Permanent Patented Technology Market (off-line)

Facilitates transaction between technology consumers and

providers through the Internet

Database of 55,000 items of patented technology

Http:// www.patentmart.or.kr/english

Located on the 3rd floor of the Korea Invention Promotion

Associationselection and exhibition of items registered at the IP- mart

Three specialist agencies provide information on market,

industry trend and standard contracts

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Greater use of IP

3. Committee on Patented Technology Commercialization

Objective

Integration and cooperation of commercialization support

programs from the government sector

Legal base

The act of invention promotion

Financial support in 2003

Total:179 billion (U$149 million)

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Greater use of IP

3. Committee on Patented Technology Commercialization

Major tasks

Upgrade and maintain the systems related tocommercialization of patented technology

Determine a comprehensive support strategy and scale

Coordinate the various policies of government sectors

ParticipantsMinistry 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

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Greater use of IP

4. Programs of financial support

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 programs beneficiaries is about 70 %

Financial support for overseas IP applications

To acquire overseas IPRs for active international business

Subsidies up to2 million (about $1,700) per case

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Greater use of IP

5. Venture capital fund

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 patenttechnology

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Greater use of IP

6. The marketing of patented products (1)

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

- Marketing strategy is vital for commercial success

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Greater use of IP

6. The marketing of patented products (2)

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

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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

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