Intellectual Property Strategy for SMEs 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 2 3 4 5 Introduction Importance of SMEs in Korea Challenges for the future 5 Promote greater use of IP Promote the creation & acquisition of IP - 1 - http://in2smile.bnz.co.kr

1. Changes in the economic environment Introduction 1. 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 - 2 - http://in2smile.bnz.co.kr

2. KIPO’s main IP strategy Introduction 2. KIPO’s main IP strategy To Complete the cycle of value-added creation Protection of IP Commercialization Acquisition & Creation Use and trade patented technology Creation of new technology & revenue Rapid and correct acquisition of right - 3 - http://in2smile.bnz.co.kr

1. Current status of SMEs in Korea Importance of SMEs in Korea 1. Current status 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 - 4 - http://in2smile.bnz.co.kr

2. How many IPRs are owned by SMEs 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 and marketing, especially IP creation - 5 - http://in2smile.bnz.co.kr

Success rate of registered rights Rate of Commercialization Importance of SMEs in Korea 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 holding PA T EN Big enterprises SMEs Survey contents - 6 - http://in2smile.bnz.co.kr

4. Difficulties in using patented technology Importance of SMEs in Korea 4. Difficulties in using patented technology Overall difficulties Insufficient funds (34%) Marketing (19%) Counterfeiting (12%) Examination period (9%) R&D staff (10%) Significant for our policy on the commercialization of patents - 7 - http://in2smile.bnz.co.kr

KIPO’s support for SMEs 1. To promote creation & acquisition of IP 2. To promote greater use of IP - 8 - http://in2smile.bnz.co.kr

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 - 9 - http://in2smile.bnz.co.kr

Creation & Acquisition of IP 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 <http://www.kipo.go.kr> KIPI <http ://www.kipi.or.kr> - 10 - http://in2smile.bnz.co.kr

Creation & Acquisition of IP 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 - 11- http://in2smile.bnz.co.kr

Creation & Acquisition of IP 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 institutes  KIPO itself supports 20-40 cases every year  KIPO assists with 75 % of the cost (up to ￦15 million) - 12 - http://in2smile.bnz.co.kr

Basic principle of support 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 - 13 - http://in2smile.bnz.co.kr

1. Patented Technology trade market 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 Association  selection and exhibition of items registered at the IP- mart  Three specialist agencies provide information on market, industry trend and standard contracts - 14 - http://in2smile.bnz.co.kr

2. Evaluation of patented technology Greater use of IP 2. Evaluation of patented technology 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 - 15 - http://in2smile.bnz.co.kr

3. Committee on Patented Technology Commercialization 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) - 16 - http://in2smile.bnz.co.kr

3. Committee on Patented Technology Commercialization Greater use of IP 3. Committee on Patented Technology Commercialization 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 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 - 17 - http://in2smile.bnz.co.kr

4. Programs of financial support 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 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 - 18 - http://in2smile.bnz.co.kr

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 patent technology - 19 - http://in2smile.bnz.co.kr

6. The marketing of patented products (1) 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 - 20 - http://in2smile.bnz.co.kr

6. The marketing of patented products (2) 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 - 21 - http://in2smile.bnz.co.kr

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 - 22 - http://in2smile.bnz.co.kr

Thank You - 23 - http://in2smile.bnz.co.kr