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Information of changes in holders of Korean, US and Japanese patents is easily viewed at a glance. (News Letter No. 530) |
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KH |
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2024-06-17 |
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1. Information of changes in holders of Korean, US and Japanese patents is easily viewed at a glance.
- KIPO opens about 28,000,000 data relating to change information in holders of Korea, US and Japanese patent rights.
- It is possible to identify technology transfers and technology development trends by Korean and foreign countries and companies.
- KIPO visited an IP information service company, to hold a meeting to activate data utilization (May 22, 2024).
To support Korean people and companies in using domestic and overseas patent information, KIPO published to open a total of about 28,000,000 data relating to change information of Korean, US and Japanese patent right holders, through an IP information utilization service (KIPRISPlus, plus.kipris.or.kr) from May 22, 2024.
The IP information utilization service (KIPRISPlus, plus.kipris.or.kr) which is operated by KIPO is a platform to provide open data. This service opens a total of 120 kinds of data products, which consist of intellectual property publications (patents, trademarks, designs) of South Korea and 13 foreign countries and the patent administrative information, in a file or OpenAPI (Open Application Programming Interface) format.
The information of changes in a holder of a right to be opened at this time is a database which is constructed according to standards by extracting a change history of a right holder and the information of a final right holder from Korea and foreign patent data.
Previously, since only the information of a final right holder was provided, users would have difficulties in knowing the change history of a right holder. However, through this data opening, users are able to easily analyze and use the transfer and technology development trends, such as domestic and/or overseas transaction of a patent.
In June KIPO will open Korean translation data of Chinese patent publications for which the demand for opening is high and open data of Korean Patent Classification (KPC) in October this year.
On May 22, 2024, the director of the Industrial Property Information Bureau of KIPO visited Clarivate Analytics Korea (located Jung-gu, Seoul) which is an intellectual property information service company, to hold an on-site communication meeting to activate the utilization of IP data.
This on-site visit was to listen to the service development status and problems of the companies using patent information and to discuss cooperative plans. The matters discussed will be reviewed and reflected when constructing patent data and establishing data opening policy in the future.
2. Fast track of semiconductor patent examination by preferential examination of a cutting-edge technology!
- The patent preferential examination period of a semiconductor is an average of 1.9 months, supporting a Korean company’s super gap.
- KIPO published a patent preferential examination (A to Z) of a cutting-edge technology and introduced major performance.
- Welcoming Invention Day (May 19), KIPO published the results of one-year performance of semiconductor examination organization.
After KIPO’s semiconductor examination bureau was launched, the semiconductor patent preferential examination process period took an average of 1.9 months. This achievement will extend to other technological fields, such as secondary batteries, bio, etc. in the future and therefore, it is expected to strengthen support for super different cutting-edge technology.
Welcoming Invention Day on May 19, 2024, KIPO published a ‘cutting-edge technology patent preferential examination A to Z’ which includes the results of one-year performance of the semiconductor examination bureau, the cutting-edge technology support policy, etc.
After the semiconductor examination bureau was launched, the semiconductor examination took an average of 1.9 months (as of May 2024) if preferential examination was requested. The foundation for improving both examination efficiency and quality was also prepared through the semiconductor preferential examination (November 1, 2022) and the hiring of a semiconductor patent examiner (March 2023 and January 2024), which were implemented before and after launching the semiconductor examination bureau.
To support a semiconductor super gap, KIPO established a semiconductor examination bureau, hired a private retired workforce as semiconductor examiners and introduced a semiconductor preferential examination policy.
The semiconductor examination bureau launched on April 11, 2023 is a first organization in charge of semiconductor examination among the major countries, which was newly established to proactively protect and develop a Korean company’s cutting-edge semiconductor technology. This organization started with 130 examiners at launch and newly hired 67 experts including private company retirees in the semiconductor field, thereby quickly establishing itself as a core organization of KIPO.
The examination efficiency and professionalism were increased by hiring private retired workforce as semiconductor examiners (30 examiners in the first hiring and 37 examiner in the second hiring). Further, the retired workforce was persuaded from transferring to an overseas company, thereby preventing the leakage of the semiconductor core technology to overseas. This public personnel management’s transition to a new system (paradigm) has led to favorable reviews, such as a grand prize from the Korean Association for Policy Studies.
A general patent application would receive a result of examination after 16 months on average (as of December 2023). However, since a patent application in the semiconductor field was designated as a subject of preferential examination, it is possible to receive the result of examination within an average of 1.9 months at present. In addition, a patent application in the display field was designated as a subject of preferential examination (November 1, 2023). This makes it possible for a Korea company to quickly secure a patent, so that it is expected to have a significant impact on business survival and growth through attracting investment or dominating the market.
Based on these successful experiences, KIPO has expanded the patent examination package support to the secondary battery field following the semiconductor and display fields.
Preferential examination was introduced in the secondary battery field (February 19, 2024). KIPO has been in the process of hiring private retired workforce as patent examiners (38 examiners) in the secondary battery field and the final hiring will be in the end of this month. The secondary battery patent examination organization will be newly established (June 2024), to complete the secondary battery patent examination package support system.
KIPO has a plan to construct a proactive protection system of a Korean company’s core technology and also to steadily continue support in the cutting-edge technology field.
3. A changed Unfair Competition Prevention Act is introduced.
- KIPO will hold a presentation of unfair competition cases and systems by region (May~July).
- The corrective order and fine levy system to be introduced by the amended Unfair Competition Prevention Act will be the guide.
- Effective relief of small and medium companies or startups’ technology theft damages is expected.
On May 24, 2024, KIPO announced to hold a presentation of unfair competition cases and systems by region for public servants as part of active administration since collaboration with local governments is necessary in administration investigation of unfair competition activities according to the implement of the amendment of the 「Unfair Competition Prevention and Trade Secret Protection Act」 (August 21, 2024) (hereinafter, referred to as the ‘Unfair Competition Prevention Act’).
Starting Gyeonggi-do (Suwon, May 24, 2024), the presentation was held for about 100 public officials in charge of local government regional economic affairs by touring the major regions, such as Busan (June 5), Jeollanam-do (Muan, June) Seoul (July), etc.
The major content includes ▲ introduction of an administrative investigation system of unfair competition activities, ▲ measures to handle cases of non-compliance with corrective action recommendations according to the amended Unfair Competition Prevention Act, ▲ actual cases of unfair competition activities by major type and specific requirements for establishing infringement, ▲ remedies of unfair competition activities, and ▲ introduction of the amended matters of the Unfair Competition Prevention Act and case-based training by type, etc.
Since the administrative investigation of unfair competition activities and the corrective recommendations and publication according to the current Act lack enforcement power, when not complying with the recommendations, damages from unfair competition have continued to occur. To solve this problem, the amendment to this Act will grant the commissioner of KIPP a corrective order authority to the administrative investigation of unfair competition activities and the commissioner will also able to announce and impose fines in cases of non-compliance.
As for a case of non-compliance of corrective recommendations, the procedures will be improved such that a local government head is able to request the commissioner of KIPO for a corrective order. In this regard, KIPO prepared this presentation to improve front-line public officials’ understanding of unfair competition practices and to do smooth communications with local government sites.
KIPO has conducted an administrative investigation of the stealing of ideas and the infringement of publicity rights in addition to the unfair competition activities, such as an unfair use of someone else’s trademark or business name, etc., which is well-known in Korea. Since an administrative investigation does not incur any separate cost burden and it is advantageous in terms of time and cost compared to litigation, it is a very effective system for individuals, small and medium companies and startups that lack the ability to respond to disputes.
As the administrative relief against the unfair competition activities, such as stealing ideas, etc., is strengthened by this amendment to the Act, effective remedies are expected to be available for small and medium companies and startups which are damaged due to technology deprivation, etc.
4. The number of patent applications filed in foreign countries by Korean companies has increased.
- The number of patent applications filed in major countries in 2023 by Korean companies was about 83,000, showing an increase of 9.4% compared to the previous year.
- Filing patent applications related to semiconductors and computer technology led by big companies has bee active.
- The percentage of Korean companies’ patent registrations in US and Europe was highest among IP5.
According to KIPO, while competition for technology supremacy has intensified around the world, an increase trend in number of overseas patent applications filed by Koreans in 2023 has continued with the efforts of Korean companies and citizens to dominate overseas markets.
<’The number of patent applications filed in the major countries in 2023 by Korean companies was about 83,000, with an increase of 9.4% compared to the previous year.>
According to Key IP5 strategic indicators jointly-published by the IP5, which is a forum of the five largest IP offices in the world, the number of patent applications (including domestic applications) filed in IP5 countries in 2023 totaled 3,020,000, increasing by 2.9% compared to the previous year.
The number of patent applications filed in the other 4 countries of IP5 (except for KIPO) by Korean applicants steadily increased every year to be 83,821 in 2023, showing an of 9.4% compared to the previous year. The number of patent applications filed in US was 43,310 which was over than half (51.7%), followed by 23.9% in China, 15% in Europe and 9.4% in Japan.
The trends of overseas patent applications can be estimated according to the status of issuing certificates of priority documents requested by Korean applicants. By type of applicants filing applications in the major countries in 2023, big companies occupied the highest percentage as 79.3%. By technology field, the semiconductor and computer technologies had great importance as 26.4% and 13.8%, respectively.
These trends are considered as resulting from the rapid growth of the AI-related market after the emergence of AI. In the future, Korean companies’ research and development of the semiconductor and computer technologies and their patent applications are expected to further increase.
In addition, the electromechanics/energy fields including the battery technology and the audio/image technology field ranked top in number of patent applications filed in the major countries, thereby confirming Korea in major technologies.
Of the patent applications filed by Korean applicants in US and Europe, the percentage of allowed patents in 2023 was 85% in US and 78.1% in Europe, which were the highest among the patent applications filed by each of IP5 and which showed a difference of more than 5% compared to China taking a 2nd place.
The increase in the number of overseas patent applications does not mean a simple quantitative expansion and this is considered as reflecting Korean companies’ positive movements to target the markets in the major countries by selecting the technologies which are registerable as patents.
5. A ‘quadruple safety device’ to keep Korean technologies has been completed and is fully operational.
- Only the damage due to overseas leaks detected for 7 years is 33 trillion Korea Won…overseas leaks are to be rooted out with the ‘quadruple safety device’.
- KIPO is designated a counter-intelligence agency and it cooperates with the National Intelligence Service to catch industrial spies.
-‘Simulating a leak or holding unfairly’ is a target of an investigation of the technology police, so that prevention of damage thereof is expected.
- From July 1, 2024, the maximum sentence for overseas leaks will be from 9 years to 12 years and even a first-time offender will receive a prison sentence.
- From August 21, 2024, in case of trade secret infringement (theft), the punitive damage limit will extend from 3 times to 5 times.
According to KIPO, the quadruple safety device for technology protection to prevent technology leakage has been completed and is fully operation. A technology protection network that determines
the survival of our companies will be expected to be much tighter.
< Major content of the quadruple safety device for technology protection >
Major content Enforcement date
KIPO is designated as a 7th counter-intelligence agency, based on the amendment of the regulations of counter-intelligence work (by the presidential decree). April 23, 2024
The scope of investigation of the technology police is expanded to all of trade secret-related crimes, based on the amendment of Judicial Police Service Act.
The technology police previously investigated only acts of unlawful acquisition, use, leakage of a trade secret but it also investigates the preparation, conspiracy, unauthorized possession, and unauthorized leak, too.
January 16, 2024
Punishment is strengthened, based on the amendment to the sentencing guidelines of intellectual property and technology infringement crimes.
The sentencing guidelines are standards that a judge refers to when deciding on sentence and probation. July 1, 2024
Punishment compensation expands up to 5 times, based on the amendment of the Unfair Competition Prevention and Trade Secret Protection Act. August 21, 2024
As the amendment of the regulations of counter-intelligence work (by the presidential decree) was announced and implemented (April 23, 2024), KIPO was newly designated as a ‘counter-intelligence agency’ according to the same regulations. KIPO cooperates with the 6 counter-intelligence agencies as previously designated, to catch industrial spies.
Due to the nature of patent examination work, KIPO has about 1,300 staff including doctors of engineering, patent attorneys, professional engineers, etc. in all fields and it also secures IP information which is worldwide cutting-edge technology information in bigdata of 580 million data. Through the bigdata, it is possible to constantly look into information about the latest technologies being developed around the world and to conduct even a professional analysis. It can find out what Korean core technologies are that can be targeted overseas.
KIPO provides the analyzed information to the ‘counter-intelligence information sharing center’ under the National Intelligence Service and it will closely cooperate with other agencies to industrial spies by connecting with the technology leakage-related spies as collected by other counter-intelligence agencies.
KIPO’s technology police consisting of technology experts is an investigation organization specialized in a crime of technology leakage, such as patent infringement and trade secret infringement (theft), etc. Through triangular cooperation with the National Intelligence Service and the Prosecutor’s Office, the technology police has achieved great results including blocking overseas leakage of semiconductor national core technology.
Despite these achievements, there was a limitation in that the scope of investigation of the technology police did not cover all of trade secret infringement crimes. Unless any one actually revealed a trade secret to others, such as competitive companies, even if an act of plotting or preparing for trade secret infringement was confirmed, the technology police had no right to investigate it.
However, as the scope of investigation of the technology police has been expanded to all of trade secret infringement crimes including an act of preparing or plotting a trade secret infringement and an act of wrongful possession of trade secret according to the amendment of Judicial Police Service Act (January 2024), the technology police’s roles have been further strengthened to prevent any damages due to trade secret leakage beyond ex post facto punishment for such damages, so that Korean technologies are able to be protected by thorough criminal investigations.
From July 1, 2024, the maximum sentence in the sentencing guidelines to a crime of leaking a trade secret overseas will increase from 9 years to 12 years (the maximum sentence relating to a crime of domestically leaking a trade secret will increase from 6 years to 7 years and 6 months). Further, probation standards will be strengthened such that even a first-time offender will be immediately sentenced to prison.
Recently, as competition for technological hegemony among countries has been intensified, overseas companies targeting Korean companies’ core technologies have continued to attempt to leak technologies. However, the punishment for a crime of leaking technology is insufficient compared to the seriousness of the crime.
In this regard, KIPO and the Prosecution Service have made efforts to improve a weak punishment to a technology leakage crime, such as trade secret infringement, etc. KIPO also led the amendment to the sentencing guidelines (March 25, 2024) in the Sentencing Commission of the Supreme Court, thanks to the interest of the public and media.
The amended sentencing guidelines will be implemented from July 1, 2024. The new sentencing guidelines will be applied to cases filed after the effective date.
From August 21, 2024, in case of trade secret infringement, the punitive damage limit will be expanded from 3 times the amount of damage up to 5 times thereof which is the world’s highest level.
In February, KIPO also newly introduced high-intensity measures to prevent technology leakage through the amendment to the Unfair Competition Prevention Act.
To raise awareness about trade secret infringement which is an act of leaking technology, KIPO strengthens the punitive damage limit from 3 times up to 5 times. The quintuple punitive compensation is the highest level even when it is compared domestically and internationally. In US which strongly protects technologies, the maximum amount of punitive compensation is twice as much. To date, China is the only country to offer the quintuple compensation.
The completion of quadruple safety device for technology protection is the positive administrative measures to strengthen all of the entire cycle of activities responding to technology leakage, ▲ collection and analysis of information on risk of Korean technology leakage → ▲ investigation of leak allegation → ▲ punishment of leak crime, thereby expecting that comprehensive response capabilities will be improved.
Through these efforts, South Korea ranked 28th, the highest ranking in 8 years, by rising by 9 levels compared to the previous year, in the intellectual property protection ranking, which was published by Swiss International Institute for Management Development (IMD) in 2023. KIPO will promote more advanced technology protection policies to raise this ranking to the top 10 in the future.
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