1. 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

2. 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
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3. 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
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4. 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
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5. 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
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6. 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
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7. 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
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8. 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
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9. KIPO’s support for SMEs
1. To promote creation & acquisition of IP
2. To promote greater use of IP
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10. 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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11. 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 <
KIPI <http ://
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12. 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
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13. 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 cases every year
 KIPO assists with 75 % of the cost (up to ￦15 million)
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14. 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
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15. 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 
 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
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16. 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
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17. 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)
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18. 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
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19. 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
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20. 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
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21. 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
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22. 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
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23. 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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24. Thank You
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