1. KIPO published ‘strategies for realizing an IP-based dynamic economy’.
- When the depth of reserving industrial property rights increases by 1%, sales increase by 0.35%, to become a key resource for economic growth.
- The number of patents held by Koreans exceeded 1 million (July 2024) and the number of patent examination cases approaches 200,000 per year, to accelerate innovation supply.
- The IP financial era of 10 trillion Korea Won has begun (August 2024), to create an investment and growth environment for innovative technology.
- The quintuple damages to trade secret infringement (the highest level in the world) has been introduced (August 2024).
- The way to utilize 600 million patent bigdata has been opened, to be used as a major weapon in the global technology war, such as establishment of high-tech industry strategies, etc.
Patent preferential examination is introduced for bio inventions after semiconductor and secondary battery inventions. Online counterfeit sales are monitored for 24 hours by AI technology, to be blocked.
While an IP grows a business to create jobs and it increases the possibility of financing start-ups to promote capital inflow, it enhances the productivity of our economy through technological innovation. Ultimately, IP is a key factor driving economic growth by increasing production factor (labor and capital) input and productivity.
KIPO hired 105 private experts in the advanced strategic industry area and launched the semiconductor examination bureau and the secondary battery examination-related 3 departments as dedicated examination organizations, thereby massively expanding patent examination capabilities.
Through the above, the number of patents held by Koreans exceeded 1 million cases in July 2024 and the number of processed patent examination cases per year sharply increased, expecting to be from 180,000 in 2021 to about 200,000 this year.
There was also a monumental achievement to open the IP financial era of 10 trillion Korea Won achieved in August 2024. This was the result of rapid growth of 1.7 times from 6 trillion Korea Won in 2021 in 2 years and 8 months.
In the issue of an overseas leak of Korean advanced technology where there was strong criticism of ‘soft punishment’, the relevant ministries led together the amendment of the sentencing guidelines of a court (March 2024) to increase the maximum sentence for an overseas leak of trade secret from previous 9 years to 12 years and to strengthen privation standards so that a first-time offender is immediately sentenced to prison. The quintuple punitive compensation to trade secret infringement, which is the world’s highest level, was also introduced (August 2024).
A ‘patent preferential examination’ in for bio inventions following semiconductor and secondary battery inventions helps secure rights quickly in the advanced strategic industry.
In January 2025, a total of 60 private experts (including 35 in bio, 16 in advanced robot and 9 in AI) will be hired as patent examiners. In the bio area, a dedicated examination organization will be launched and patent preferential examination will be introduced, thereby completing the support system of a ‘patent examination package’ across the whole advanced strategic industries (semiconductor, display, secondary battery and bio).
Establishment of national strategies is supported with patent bigdata of 600 million cases which is a ‘guide to cutting-edge technology’.
The patent bigdata which are cutting-edge technology information of 600 million cases are fully utilized based on the ‘Industry Property Information Act’ which came into force in August 2024. Since the patent bigdata is a collection of cutting-edge technology information including companies with technology (applicants), researchers (inventors), technology areas (patent classification codes), technology information (detailed description of invention), etc., it is possible to compare and analyze the industrial and technological competitiveness by country and company and to read trends thereof by utilizing the patent bigdata.
As for the game changer technology, such as AI, quantum and high-tech bio, etc., KIPO plans to actively present analysis results of the patent bigdata to a national board relating to these technologies so that the data-based national strategies can be established. KIPO also plans to establish a 5-year basic plan based on the Industry Property Information Act’ within this year so that the utilization of the patent bigdata can be promoted in the AI industry, etc.
An environment to open IP information is created so that companies with innovative technology are properly evaluated in the market.
Although the major countries, such as US, Japan, etc., have attracted investment revitalization by objectively providing companies’ technology and IP information to investors, there is no relevant system in South Korea. In this regard, as part of Korea Value-Up, KIPO plans to create an environment to actively provide the market with the information including the state of IP right(s) held by a company and the relevant investment and utilization, by preparing a guideline to open company IP information, etc.
Support for IP commercialization is to be expanded to promote technological innovation.
KIPO’s support will be expanded so that patents held by companies, universities and public institutes can be more utilized for commercialization, such as startup, entry into a new business, etc. In collaboration with the relevant ministries, local governments and private investment institutions, etc., KIPO will foster startups and strengthen support of IP commercialization of small and medium companies and also promote the development of private trading organizations to revitalize the private sector-led IP trading market. KIPO also plans to review measures to strengthen tax support of IP commercialization.
Korean companies are to be protected from overseas IP disputes which are obstacles to exports.
A company accused of patent infringement in overseas market will have to bear the risk of huge damages and export bans. As the influence of exports is absolute to Korean economic growth, KIPO will support with all its resources so that a Korean company is able to prepare for an overseas IP dispute. From 2025, KIPO plans to provide a company which is in the early stages of exporting or plans to export with consulting and diagnosing of an IP dispute risk in advance.
24-hour monitoring by AI technology blocks the distribution of online counterfeit products.
As digital transformation has continued, damages due to increased counterfeit product distribution through various paths, such as online shopping malls or overseas direct purchases, etc., have been causes in not only small and medium companies’ brands but also people’s safety level in baby products, car parts, etc. In this regard, an AI monitoring system which monitors and reports counterfeit sales posts of domestic and out of country platforms for 24 hours has been introduced. A trial run was conducted for 11 trademarks this year and this system will continue to expand in the mid to long term by sharply expanding to 160 trademarks in the next year.
2. KIPO held a meeting with Korea Intellectual Property Trial and Appeal Board (KIPTAB) and Korea Intellectual Property Association (KINPA) (November 7, 2024).
- The voice of a company that is a ‘client of patent litigation’ is actively reflected in improving the litigation system.
KIPTAB of KIPO and KINPA had a meeting to listen to companies’ IP-related current issues and suggestions to patent litigation.
KINPA started with the participation of 67 companies including LG Electronics and Samsung Electronics in 2008 to discuss companies’ mutual cooperation plans in IP field and to conduct their joint research, etc. At present about 260 member companies participate in KINPA.
In the meeting, the principle of KIPTAB, a chief judge in the chemistry field and the member companies of KINPA attended to exchange their opinions on difficulties for a company when responding to a patent dispute and the relevant system improvement directions.
As the participants shared KIPTAB’s judgement decision issues in the bio field and dispute responding plan relating to an misappropriated application and KINPA’s practical example(s) and opinions of the drug patent litigation and the litigation for cancellation of a trial decision, this meeting is expected to be an opportunity to expand both the understanding of the latest technology and its precedent trends, etc.
3. KIPO visited Samsung Display and held an on-site meeting.
- KIPO starts an on-site communication to support super gap in the display field.
KIPO and Samsung Display staff had a meeting for on-site communication relating to IP right(s) in Samsung Display Research.
While Chinese technology catch-up has threatened the competitiveness of Korean companies in the competition for display supremacy around world, this meeting was prepared to contribute to a Korean company’s securing global competitiveness by listening to IP-related difficulties of the company which filed many applications in the display field and seeking ways to cooperate.
In the meeting, KIPO and Samsung Display shared the next generation display industry and IP trends and discussed the IP directions that enable a Korean company to maintain competitive advantage in the next generation display field.
The head of the semiconductor examination bureau of KIPO said, “Since the importance of display as an advanced strategic industry has grown day by day, securing a technological gap using IP is more important than anything else. … KIPO will continue to communicate the industry so that Korea companies can secure competitive patents.”
4. In an IP financial era of 10 trillion Korea Won, an innovative company’s scale-up is with an IP finance.
-KIPO and the Financial Services Commission (FSC) jointly held the 6th IP financial forum (November 7, 2024).
-In the IP financial era of 10 trillion Korea Won, excellent results were shared and future policy directions were discussed.
KIPO and FSC jointly held the 6th IP financial forum (IPFF).
In the forum which proceeded with the subject on ‘the IP financial era of 10 trillion Korea Won, from startup to scaleup’, about 140 participants included the commissioners of KIPO, the vice-chairman of FSC, business people of banks, investment agencies, guarantee agencies, invention rating agencies and companies.
Welcoming to the IP financial era of 10 trillion Korea Won, this forum was held to look back on past achievements and to discuss the directions that the IP financing can further contribute to Korea companies’ growth and dynamic economic development.
▶ Introduction of achievements and future policy directions in the IP financial era of 10 trillion Korea Won,
▶ Cases of policy fund loan using an IP of a company with excellent technology,
▶ Current state of IP investment from the perspective of a venture investor,
▶ Scale-up of an innovative company through IP financing
<2024 IP financing scale exceeded 10 trillion Korea Won, which is a ‘priming water’ in financing for an innovative company.>
Through IP financing, the Korean government has supported small and medium companies and venture companies, which have excellent technical skills but have difficulties in financing due to lack of material security or credibility, so as to smoothly secure business funds by using IPs.
KIPO has carried forward the ‘program to support IP valuation’ required to use IP financing and the ‘program to recover collateral IP’ to reduce the risk of recovering collateral IP by a bank and it also set aside a government budget to create an IP investment fund. Further, KIPO built a financial ecosystem by closely cooperating with FSC, venture investors, financial institutions, evaluation agencies, etc.
As a result, the Korean IP financing scale exceeded 10 trillion Korea Won (based on balance) in August 2024 and the companies with excellent technological skills were able to overcome the financial crisis and achieve innovative growth by utilizing the financing.
The vice-chairman of FSC emphasized, “IP has become a source of competitiveness and added value for companies and countries… We will serve as a catalyst for growth of companies that innovate technology, through the deep tech (technology finance) fund to be launched this year.”
The commissioner of KIPO said, “the funds exceeding 10 trillion Korea Won have served as a stepping stone for companies’ growth through IPs which are potential for companies’ technological capabilities and growth possibility … KIPO will spare no effort in providing policy support by closely communicating with financial institutions and demand companies so that much more companies will actively utilize the IP financing where it is needed.”
5. KIPO attended a 15th meeting of the heads of the Korea, China and Japan IP training institutions (November 5 and 6, 2024).
KIPO’s International Intellectual Property Training Institute (IIPTI) attended the meeting of the head of Korea, China and Japan IP training institutions, which was held in Beijing, China, to discuss the current issues and cooperative plan in the IP education field among the three nations.
The participants of this meeting included the heads and working groups of Korea IIPTI, China Intellectual Property Training Center (CIPTC) and Japan National Center for Japanese Industrial Property Information and Training (INPIT).
The meeting of the head of these three IP training institutions is for the heads in charge of IP education to share the IP training status and experiences among the three countries and to discuss a plan to develop their training cooperation.
In this meeting, the three countries occupying 51% of international patent applications (PCT) (based on 2023 WIPO’s PCT annual report), which agreed on the need for cooperation in the field of IP education, discussed many current issues including: ▲ sharing each country’s IP education status, ▲ implementing a joint cooperation education program, ▲ discovering an IP education curriculum for university researchers, and ▲ planning to apply an IP education of AI technology, etc.
The joint seminar of Korea-China-Japan, which was held at 9:00 (local time) on November 6, 2024 is a cooperation program to strengthen each country’s IP capabilities. This seminar was reopened after a 4-year delay due to the COVID-19 pandemic. In the seminar for examiners and patent attorneys of each country, the three countries’ AI-related patent examination regulations was online presented and discussed.
6. It becomes easier to find a prior design by using the ‘patent and design classification matching information’.
-KIPO held a presentation of a project to build the ‘patent and design classification matching information (November 21, 2024).
As part of on-site communication, KIPO held a presentation to utilize and spread the ‘patent and design classification matching information’ which was built to improve the convenience of searching for a prior design(s) when filing a patent application and examining it.
The need to search for a prior design(s) when filing a patent application and examining it has increased in accordance with the recent trend of convergence between patented technology and design. In this situation, the presentation was prepared to share the results of building the patent and design classification matching information and the examination cases using the matching information and to listen to the opinions from the relevant industry.
The participants of this presentation to share opinions included the head of the Patent Examination Policy Bureau of KIPO, the policy manager(s) and the policy demanders from industries, prior art search agencies, patent attorneys, etc.
The patent and design classification matching information has been built to make a prior art design search easier and more accurate when a patent application for a technology with a distinctive appearance is filed and examined, by matching the closest design classification to a particular patent classification, based on the relevance between the patent and design classifications.
The head of the Patent Examination Policy Bureau of KIPO said, “We will continue to make every effort to improve the reliability of patent examination and the convenience of searches and further secure the legal stability of patents, by reflecting the opinions collected in this presentation in the project of building the ‘patent and design classification matching information’.”
|
