1. AHN Jae-Hyun Senior Director Industrial Property Policy Division
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
1957
2007
GDP Per Capita : $ 74
Export : $ 22 million
Lack of provisions, food
Lack of electricity
Patent filings : 469
GDP Per Capita : $ 20,000
Export : $ 371,489 million
Techno-intensive Industry
- IT products, mobile phone, semiconductor, car etc.
Ship-building : No.1
Patent filings : 171,731

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. Financing 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 Filings in 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 : Ranking 1)

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

14. Ⅱ. The Current Status of Korea in the IP Field
Patents Granted by Country of Origin in 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. Nurturing “Star Companies”
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. Customized IP Consultations
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. Public Patent Attorneys Center
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. IP Education and Training
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. Customized Cyber Education
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. Small companies : 70% exemption Medium-sized companies : 50% exemption
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. Expand the ‘Reward System for Employee Inventions’
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. Supports for Filing Patents Overseas
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. Only few patented technologies are commercialized
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. Raising the commercializing funds and investing or loaning to SMEs
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. Supports for E-commercing Patented Products of Good Quality
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 (
Selling lots of patented products made by SMEs on the cyber mall

34. The patented goods can have the preference in government procurement
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. Awards for Excellent Inventions
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. Supports for Appraising the Value of Patented Technologies
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 (
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. Exhibiting and advertizing patented products and technologies
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. Free Consultation on IPR Infringement
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 I wish Mongol a great success and prosperity
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. Thank you! AHN Jae-Hyun iprkorea@empal.com
Phone: , Fax: