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KIPO¡¯s technical police and trademark police investigate unfair competition acts, such as a ¡°fake¡± product store, etc., and infringement of a utility model right.(News Letter No. 519)

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KH

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2024-01-02

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1. KIPO¡¯s technical police and trademark police investigate unfair competition acts, such as a ¡°fake¡± product store, etc., and infringement of a utility model right.

- The amendment to the ¡®Judicial Police Service Act¡¯ passed the plenary session of the National Assembly (December 20).
- The scope of the investigation of the technical and trademark police expands so that it is expected to contribute to the strengthening of IP protection.
- This year, the trademark police booked 212 people and confiscated about 116,000 items and the technical police booked 457 people.

According to KIPO, the amendment to the ¡®Judicial Police Service Act¡¯, outlining that the scope of the investigation of the technical and trademark police expands to major unfair competition acts and a utility model infringement act and all of trade secret infringement acts, passed the plenary session of the National Assembly on December 20, 2023.
The ¡®Judicial Police Service Act¡¯ is a law to regulate the ¡®special judicial police¡¯ system, etc. which grants police authority to an administrative official as to a crime with which an administrative agency can more efficiently deal, such as a criminal act that requires a high level of expertise or that occurs in a space with limited access. Based on this Act, KIPO operates the ¡®technical police¡¯ and ¡®trademark police¡¯ which are IP special judicial police comprised of professionals, such as doctors, lawyers, patent attorneys, technicians, and experienced examiners and judges, etc.
Based on professionalism, KIPO¡¯s technical and trademark police has contributed to the IP protection by investigating about 20% of the total technical infringement cases and confiscating hundreds of thousands of counterfeit products every year. The technical and trademark police also recently arrested the leaker leaking the semiconductor core technology to China, greatly contributing to the prevention of technology leakage overseas.
However, since the scope of the investigation of the technical and trademark police was limited to parts of unfair competition acts and a trade secret infringement crime, excluding a utility model right, there was problem that they could not investigate despite knowledge of an IP infringement fact or there was a problem with delays in case processing since a general police¡¯s additional investigation was needed by the general police department


The amendment to the ¡®Judicial Police Service Act¡¯ to improve the above-mentioned problems has the key point of adding to the scope of investigation of the KIPO¡¯s trademark police, the unfair competition acts closely related to trademark infringement, such as an act of misleading people into thinking that one that is not an actual business entity is a business entity by using, without permission, a famous trademark to a business place, an advertisement, etc. (an act of causing a misrepresentation of a business entity), or an act of damaging the reputation of a trademark by using, without permission, a famous trademark to a product which is not related to an actual product (an act of diluting well-known and famous labels).
The scope of investigation of the KIPO¡¯s technical police includes utility model infringement acts and an act of neutralizing, by hacking, etc., the protective measures of the information that is protected by the Unfair Competition Prevention Act (an act of neutralizing the information protection measures). The scope of investigation of the technical police expands to all of trade secret infringement acts, such as preparation and conspiracy acts.



2. Writing a design application becomes easier and more convenient.

- KIPO has implemented some amendments to the Enforcement Rules of the Korea Design Protection Act (December 21).
- The drawing identification item numbering system is simplified to increase an applicant¡¯s convenience.

According to KIPO, the partial amendment to the Enforcement Rules of the Korean Design Protection Act with the point to improve the convenience for an applicant was implemented on December 21, 2023.
To get a registration of a design, a design application shall be written according to the Enforcement Rules of the Design Protection Act, to be submitted to KIPO to be examined. In this regard, it was pointed out that the drawing description method, etc. to be described in the application items list and to be attached to the application was somewhat complicated and difficult.


The identification item numbering system of design drawings attached to a design application is simplified from a two-digit mark to a one digit mark, preventing an applicant from making an unnecessary mistake.


The formats of 3D computer modeling files that can be submitted instead of a drawing(s) are also drastically organized. Previously, the five formats, such as IGES, 3DS, DWG, DWF and 3DM, could be submitted. However, in this amendment, IGES with the highest preference of the applicants is kept and the other formats are replaced with STP, STL and OBJ, which are popular formats in the field since these formats are the same as to the technical characteristics but are high as to the stability and compatibility and which are recommended by the Committee on WIPO Standards.


The ¡®field of usage of computer-generated graphic designs, icons and etc.¡¯, which is required to be described, is combined with the previous ¡®field of description of design¡¯, expecting effects of making it simpler to file a design application and promoting the filing of an application for computer-generated graphic designs, icons and etc.
The director of KIPO¡¯s trademark and design examination bureau said, ¡°through this simplification in filing a design application, it is expected to considerably solve the inconvenience that small and medium companies and small business people accounting for more than about 90% of Korean design applications and it is also expected to reduce the number of cases which receive notices of y rejection reasons in the process of examination.¡± In addition, the director said that KIPO would always plan and improve the design system from the perspective of the field.



3. About of 6,000 K-fashion counterfeit products were confiscated with China¡¯s cooperation.

- KIPO conducted a fact-finding mission and cracked down on the distribution of counterfeit products in China, to protect IP rights.

On December 19, 2023, KIPO and Korea Trade-Investment Promotion Agency (KOTRA) published that they conducted a fact-finding mission on Korea fashion (K-fashion) brand counterfeit products distributed in China and uncovered a counterfeit product storage facility and confiscated 6,155 counterfeit products with China¡¯s cooperation.


KIPO, Guangzhou IP center (hereinafter, referred to as ¡®IP-DESK¡±) and KOTRA captured, in Guangdong province, the circumstances the distribution of the products, such as bags, clothing, sunglasses, etc., under the guise of being made in Korea and conducted a survey of an actual condition of counterfeit products of K-fashion brands from April to October 2023 in Guangdong province.
For reference, 17 IP-DESKs are in 11 countries, including China (6 places), US (2 places), Japan, Germany, Russia, Vietnam, Thailand, Indonesia, Philippine, India and Mexico (1 place).
The public security bureau of Guangdong province in China cracked down on one counterfeit product storage facility on October 26, 2023, based on the information as a result of the survey of the actual condition by KIPO and KOTRA, and confiscated 6,155 counterfeit products of two Korean clothing brand companies (estimated value of genuine products: about 5.2 billion Korea Won.)
Based on the survey of the actual condition, as a result of investigating and analyzing 114 samples suspected of being counterfeits, which were purchased from stores and links suspected of distributing the counterfeit products of K-brands in major online platforms (12 platforms), finally 65 products were determined to be counterfeits.


As a result of researching the current status of Chinese trademark registrations regarding the 114 samples suspected of being counterfeits (as to 74 K-brand trademarks), 50% (37) of the K-brands were registered as trademarks in China and the other 50% (37) were not registered.
As a result of researching the Chinese trademark registration status as to the 65 products (related to 34 K-brand trademarks) determined to be counterfeits, 71% (21) of the K-brands were registered as trademarks in China but the other 29% (10) were not registered as trademarks.
When a trademark is not registered in China, even though a counterfeit product thereof is produced or distributed, it is impossible to crack down on it. Therefore, it appears that companies operating in China need to actively register their trademarks.


KIPO strengthens support for the sectors with frequent damages from overseas counterfeit products through the public-private joint response council concerning the counterfeit products of K-brands. In the public-private joint response council concerning the counterfeit products of K-brands, launched in last November, 5 cooperative organizations participate, including Korea Foods Industry Association, Korea Cosmetic Association, Korea Fashion Industry Association, Korea Franchise Association and Korea Music Content Association. They will continue to expand the council to the sectors where damages due to overseas counterfeit products are frequent.



4. Efficiency of research and development (R&D) is carried forward with an intellectual property-based research and development (IP-R&D).

- KIPO held a first IP-R&D academic conference to spread IP-R&D (December 18).
- Analysis cases of IP-R&D methods in national strategic technology and IP bigdata were shared.
- An IP-R&D Council was launched and an excellent institution in IP-R&D was awarded.



# ¡°A¡±, an advanced materials research institute, promoted utilization of IP bigdata, to find a research project in the field of carbon materials. ¡°A¡± analyzed the IP trends and competitiveness in the field of carbon materials and derived a promising technology from a patent perspective by focus area, thereby selecting a core research project.

# ¡°B¡±, a semiconductor equipment manufacturing company, researched patents of the major overseas competitors in US, China, Japan, etc. Based on the research, ¡°B¡± supplemented and improved its technology, thereby creating a new IP and succeeding in developing new equipment


KIPO held the first IP-R&D academic conference. The academic conference was for the first time prepared to promote the private expansion of IP-R&D by sharing the utilization methods of IP bigdata and the cases thereof for the R&D efficiency.
IP-R&D is a R&D method to prevent overlapping investment and to increase R&D efficiency by using the patent bigdata of 530,000,000 cases.

In individual parts, experts from various fields were invited to share the results of analyzing: ¡ãIP policy in the field of national strategic technology ¡ãanalysis methods of IP bigdata ¡ãbigdata in the various fields, such as AI, carbon materials, urban air mobility disaster safety, etc., and to share cases of using IP bigdata in the R&D.
Notably, a national strategic technology-related IP-R&D guideline¡¯ was distributed. The guideline presented the IP trends by 12 national strategic technologies, the IP search and analysis types, IP-R&D priority support areas.
For activation of private IP-R&D, a new chairman of the IP-R&D council was appointed and an excellent institution creating results with IP-R&D was awarded.



5. The number of patent applications relating to the Internet of Things (IoT) technology to prevent an accident has increased.

- The number of patent applications relating to the IoT-based accident prevention, filed in the world, increased by an annual average of 10.8% over 10 years.
- Samsung Electronics was 4th and LG Electronics was 5th, showing that a number of Korean applicants were in high ranks of the applicants filing multiple applications.

The IoT technology has been applied to keep safety in our life scene, such as work place, home, school, etc. The size of the whole global public safety market using the IoT technology was 4.4 trillion Korea Won ($3.05 billion) in 2023 but it is expected to grow by an annual average of 17.1% to reach 7.6 trillion Korea Won ($5.73 billion) in 2027. The technology develop to occupy the IoT-based safety management market is also expected to be active.

* ¡°IoT in Public Safety Global Market Report 2023¡±, Business Research Company, 2023. 3.


According to KIPO, the number of the worldwide patent applications relating to the IoT technology-based accident prevention has steadily increased by an annual average of 10.8% over the last 10 years (2012~2021).


As a result of analyzing the patent applications relating to the IoT-based accident prevention technology, which were filed in IP5 (KIPO, USPTO, CNIPA, EPO and JPO, the number of the relevant patent applications was only 1,348 in 2012 but it increased by an annual average of 10.8% over 10 years to reach 3,406 in 2021.


By detailed type, the most relevant applications were filed in the industrial safety field (39.9%), followed by childcare (29.5%), elderly care (23.6%) and school safety (11.6%). The industrial safety field had the highest annual average increase rate, 16.8%, which was increased by about 4 times over the last 10 years. The other fields had a high increase percentage of an annual average of around 7%.
This is considered as a result that as micro electro mechanical systems (MEMS) have been applied to sensors, low-cost and miniaturized sensors have become widespread and the development of broadband IoT communication transmission technology has enabled high-quality services. Further, through the era of accelerating aging and non-face-to-face routine, the increase in demand for IoT services in the social welfare field also appears to have had a significant impact.


The number of the relevant applications filed with each of IP5 was that: 11,076 (45.1%) applications were filed with USPTO, 6,301 (25.7%) with KIPO, 4,340 (17.7%) with CNIPA, and 1,648 (6.7%) with JPO. However, with respect to an annual average increase rate, China had the highest increase rate with 33.7%, followed by Korea with 15.5%. US is the largest market of the accident prevention technology using IoT but Chinese market is considered as rapidly expanding.


Among the top 10 applicants that filed multiple applications in this field, Korean applicants accounted for the majority. IBM (231 applications), Philips (159) and Google (108) ranked 1st to 3rd in number of the relevant applications. However, Samsung Electronics (85) was 4th, LG Electronics (84) was 5th, Korea Electronics and Telecommunications Research Institute (80) was 6th and the Government of the Republic of Korea (75) was 7th, showing that Korean applicants stood out at the high ranks.
The manager of the IoT examination department of KIPO said, ¡°Filing patent applications relating to the IoT-based accident prevention technology is expected to be more active to eliminate safety blind spots in work places, schools and homes.¡± The manager also added, ¡°KIPO will make every effort not only to provide a high-quality examination but also to provide, in a timely manner, the relevant statistical data and guides, etc. which applicants need, so that companies secure excellent patents as soon as possible.¡±



6. Make patent trial procedures easy and convenient!

- A ¡®digital patent trial system¡¯ applying the latest technology, such as AI, etc., has been available (December 18).
- An online trial request service is improved and AI is applied to a trial for request for a trial formality work.

According to KIPO, the ¡®digital patent trial system¡¯ applying the latest technology, such as AI, etc. has been opened from December 18, 2023.
As this system has been opened, it becomes easy to request a patent trial online, and as AI is introduced to a patent trial administration, it is expected to support rapid and accurate work.

To establish a trial system suitable for the digital era, KIPO has carried forward the building of digital patent trial system for 3 years (2023~2025). In this year, KIPO realized the services for the people and the advancement of trial formality.


The online patent trial request service through ¡°Æ¯Çã·Î (www.patent.go.kr)¡± and a ¡°program to fill in a form¡± has been improved such that anyone is able to easily and accurately file a request for a patent trial.
To prevent an input error which may happen when making a document, required information, such as a patent client number, etc., is automatically input by connecting to KIPO¡¯s database, and the system checks for errors and if any error exists, the system notices it to a user before submitting the document. Therefore, correction procedures, which may occur since the formality requirements of the document is not proper, are expected to be minimized.
A proof sign (for example, Kab No. 1 Evidence), which should be manually described every time when submitting evidence documents, is automatically described. In line with the times, the system is improved to make it possible to submit large-capacity, multi-media verification documents, to strengthen the user convenience.
The system is also improved such that it is possible to view, at ¡°Æ¯Çã·Î (www.patent.go.kr)¡±, the mailed documents, which it is impossible to receive online, and the large files, which are 100 MB or more.


AI is applied to trial formality work, to accelerate a patent administration innovation.
Trial formality work is to check whether there is a formal defect in about 170 types of documents submitted by complainants. Since it is impossible to electronically recognize the attached documents submitted in an image file, those documents had relied on examination of an formality examiner¡¯s naked eyes.
Now, KIPO automizes the formality examination by applying AI and the optical character recognition (OCR) technology in automatically recognizing and extracting, from the attached document image(s), the information required for formality examination.

Thereby, the amount of trial formality work is expected to be reduced and the application of AI and the OCR technology are also expected to expand to formality work in the future application and registration fields.
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