ahn jae-hyun senior director. contents i.importance of ip management of smes ii.current status of ip...

AHN Jae-HyunSenior Director

Contents

I. Importance of IP Management of SMEs

II. Current Status of IP Management of SMEs in Korea

III. National IP Action Plan of Korea to

help SMEs

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More R&D investment Effective R&D through IP system More IPRs Stronger competitiveness

More R&D investment Effective R&D through IP system More IPRs Stronger competitiveness

Knowledge-basedEconomy

IPRs : Sources ofcompetitiveness

Large enterprise :

Bitter experience of IPR infringements

Good awareness on the importance of IPR

Active IP strategy and IP management

SMEs : Lack of awareness on IPR, Shortage of fund

and professional staff No IP strategy , no IP mg’t

Large enterprise :

Bitter experience of IPR infringements

Good awareness on the importance of IPR

Active IP strategy and IP management

SMEs : Lack of awareness on IPR, Shortage of fund

and professional staff No IP strategy , no IP mg’t


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SMEsSMEsSMEsSMEsR&D IPR

Enhancing technical

competitiveness Mgt for connecting R&D

and IPR

Gov’t Gov’t Gov’t Gov’t Help SMEs invest in R&D help them make

R&D more effective through search for prior

art help them get more IPRs help them

exploit IPRs enhancing competitiveness


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Contents



III. National IP Action Plan of Korea to

help SMEs

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Increase of SMEs to Produce leading goods Increase of SMEs to Produce leading goods

Over 2/3 of manufacturers to produce leading goods in the global market are SMEs since 2003.

‘01 ‘02 ‘03 ‘04 ‘05 ‘06

Large firms

56 69 21 30 25 13

SMEs 44 67 57 65 79 61

<Trend of the number of leading goods by size of enterprises>

Strengths and Opportunities

Strengths and Opportunities

II. Current Status of IP Management of SMEs

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Constant increase of SMEs to develop essential technology Constant increase of SMEs to develop essential technology

-Constant increase of medium sized corporations( 50~299 employees) to produce parts and materials

’99 ’05

42.1%

46.9%46.9%

Constant increase of R&D centers of SMEs Constant increase of R&D centers of SMEs

- R&D centers set up by SMEs have exceeded 10 thousand since 2005.

8,217 8,927 10,894 12,398

Source : Korean Statistics Administation

14,014

‘01 ‘03 ‘05 ‘06 ‘07


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Constant increase of patent filings and registrations by SMEs

Patent filingsPatent registrations

’02 ’03 ’04 ’05

11,969

13,088

15,093

18,661

12,705

13,895

14,966

20,597


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Weaknesses and Threats

Weaknesses and Threats

Lack of search for prior art to avoid duplicate R&D Lack of search for prior art to avoid duplicate R&D

Many SMEs modify an R&D project (53.1%) or stop it (14.6%) after investment due to a prior art. <‘05, Korea Industrial Technology Association>

Korean SMEs are weak against a patent offensive by foreign companies due to the lack of a defensive strategy and competitive essential patents.

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Lack of incentive for invention by employee Lack of incentive for invention by employee

29.8%

Only 29.3% SMEs gives Only 29.3% SMEs gives

compensationcompensation

for employee inventionsfor employee inventions ** Large firms : 75.0%Large firms : 75.0%

20.6%

20.6% SMEs have ever lost 20.6% SMEs have ever lost

industrial secrets due to the industrial secrets due to the

lack of proper incentives for lack of proper incentives for

employee inventions.employee inventions.

<’06><’07>


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Lack of CEO’s IP awareness and an IP strategy Lack of CEO’s IP awareness and an IP strategy

A Korean SME to produce DMB paid huge amount of royalty to an

American company on receipt of ‘warning letter against patent

infringement’ without thorough investigation into scope of the

patent.

Most SMEs are lack of an IP strategy against a patent dispute with a large firm home or abroad. - 24% SMEs have experienced patent disputes for the last 3 years.

Most SMEs are suffering from royalty deficits by over 4 times. -Average royalty income : 17 million KRW-Average royalty expenditure : 76 million KRW

Due to lack of commercializing funds and difficulty in marketing etc. SMEs have difficulty in getting profit from IPRs and investing R&D.

Lack of profit from patents Lack of profit from patents


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Lack of IP specialized team and staffLack of IP specialized team and staff

IP specialized IP specialized team : 9.4% (07) team : 9.4% (07) Large firms : 20.6%

9.4%

IP specialized staff : IP specialized staff : average 2.3 persons average 2.3 persons

(07)(07) Large firms : 3.7 persons

160 million

35 million

Patent filings & Patent filings & registrations registrations

Education &Education &trainingtraining

＞＞

Lack of education and training IP specialistLack of education and training IP specialist


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Contents



III. National IP Action Plan for SMEs in Korea

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1. Making R&D Effective to Create More IPRs

Making R&D effective thru systematic use of patent informationMaking R&D effective thru systematic use of patent information

Free patent information service (KIPRIS)

- Expand the patent information DB

‘07‘06

54million

60million

Search for prior art before launch of a R&D project

- avoid duplicate R&D, thereby saving money and time

- Further develop a technical idea ‘06 ‘07

7871,200

Strategic R&D projects

Patent information DB

- Customized patent information service

- Link to popular Internet portal sites such Naver, Empas

III.National IP Action Plan for SMEs in Korea

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Guide for development of essential technologies

Prevention of patent disputes

Analysis of patent informationAnalysis of patent information

SMEsSMEs

Patent map and patent dispute map

- Help SMEs make a strategy for preventing patent disputes and cope with them - Analyze IPR dispute cases between ROK and major countries such as US, EU and JP

Unified patent information service - Open a website providing various kinds of patent information services

* Offer DB of patent infringement cases in the federal courts and CAFC (’07)

* www.patentmap.or.kr


1. Making R&D Effective to Create More IPRs

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Expansion of employee invention system as catalyst of innovation

Inducement of development of essential technologies Inducement of development of essential technologies

Preferential Treatment in

Various support

개정 직무발명제도

설명회 개최

Explanatory Meetings, seminars

Expansion of a Best

practice,

Tax exemption of

compensation for emp.

inventions

Analyze international and domestic trademark

applications and registrations and offer to SMEs to help

make a brand and design strategy

Enhancement of awareness of brand and designEnhancement of awareness of brand and design

Develop and offer design maps to help SMEs develop a

good design and prevent design disputes


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2. Speedy acquisition of IPRs

Most speedy patent examination

In the world (’07 : 9.8 month)

Assistance of SMEs to acquire IPRs of the results of R&D Assistance of SMEs to acquire IPRs of the results of R&D

Speedy examination

(9.8 mth)

Speedy

acquisition of IPRs

Shortening of life cycle

-Economic effect : 2.4 trillion KRW

( Korea Institute for Industrial Economics & Trade, ‘06)

「 Highway for patent examination between Korea and Japan 」 (‘07.4) - Help Korean SMEs speed up acquisition of Japanese patents - JPO will give preferential treatment to the filings from Korean applicants that have been filed with both Korean and Japanese Patent Office.

Preferential speedy examination for the filings by tech.-

innovative SMEs


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Reduction of cost for promoting acquisition of IPRsReduction of cost for promoting acquisition of IPRs

Fee exemption

-Medium sized firms : 50%

-Small sized firms : 70%

Support for filings abroad

Promoting international applications of outstanding inventions- 3 million KRW per filing

- Excellent invention : 6 million KRW

‘05 ‘06 ‘07

Max amount per filing

2.5mil. 3 mil.

6 mil.


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3. Commercialization of IPRs

Support for commercialization of IPRsSupport for commercialization of IPRs

“Council for Commercialization of Patented Technologies”

composed of several ministries : 263 billion KRW (’06) 277

billion KRW (’07)

52%

26%

SMEs’ obstacle against commercialization of IPRs

Shortage of fund

Marketing and sales

’06 : KIPO’s survey


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Secured loan against patents

- Help SMEs which lack in capability of security against tangible

assets to get more loan secured against a patented technology

(Amount of loan secured against patents, billion KRW)

‘05 ‘06 ‘07

52.4 768.6

Establishment of ‘Fund of fund’ (‘06~’07, Total 110 billion KRW)

: Invest SMEs or venture companies with excellent patented

technology


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Strengthening the support for making a prototype of a

patent made by SMEs* Up to 30 million (’06) 50 million (’07) per SME

Support for marketing patented goods Support for marketing patented goods

‘E-commerce system’ for patented goods was set up to

help SMEs that lack in capitals and marketing skills.

* Sales are on the rise year by year ( Million KRW)

6300

5200‘05 ‘06

7000‘07


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Improvement of preferential procurement of patented goods

Preferntial

procurement

Preferntial

procurement

NEPNEP Testing AgencyTesting Agency

•Click to add Text



•NEP : Certification mark given to a new excellent product by the Korean Agency for Technology and Standard.

-The patented goods

recommended for preferential

procurement by KIPO are

exempted from valuation test

for NEP (New Excellent

Product).

A product with a NEP can

benefitfrom various government

supports.


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Establishment of the valuation system of a patent Establishment of the valuation system of a patent

Support for valuation of a patent

: Help SMEs borrow money from a bank, transfer the patent or

promote

marketing of the patented product.

79.4%

>> 79.4% of the result of the valuation of a patent are useful for financing, sales of the technology, certification or marketing. (02~06)

Strengthening of the credibility of the valuation - Sharing knowledge and skills between valuation agencies

- Training valuation experts through seminars, symposia etc.

- Making a guideline for valuation and a report of valuation


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Establishment of a demander-oriented transaction system Establishment of a demander-oriented transaction system A demander-oriented transaction system was established

to promote transaction of patents.

-Reduce the cost of

search for demanded

technology

-Higher rate of

success of patent

transaction through

online negotiation

Patent auction system Patent auction system (07)(07)Survey of demanded technologySurvey of demanded technologyPatent transaction expertsPatent transaction experts

-Conduct a survey of

demand of technology

-Search for fitting

technology

-Offer a customized

consultation for

transaction of patents.

- Patent transaction

experts help and

promote the patent

transactions


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Establishment of 「 Comprehensive Information System for

Commercialization and Transfer of Patented technology 」

(website)

: Offer comprehensive information on governmental support

programs

such as valuation of technology, loans of commercializing fund

etc.

‘Free license of state-owned patents to

SMEs- More than 700 of state-owned patents that are not

licensed over

3 years are offered to SMEs for free licensing for up

to 2 years.


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Future Policy DirectionFuture Policy DirectionFuture Policy DirectionFuture Policy Direction

Consistent development of an IP

action plan to

help SMEs build IP capacity Enhancement of the quality of patents by

SMEs Enlargement of customized support to

SME Maximization of the policy effect by

strengthening of link between various

support

programs


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Thank you! ^^Thank you! ^^Thank you! ^^Thank you! ^^

ahn jae-hyun senior director. contents i.importance of ip management of smes ii.current status of ip...

Documents

ip management smes

korean smes

ip system

constant increase of

ip specialized staff

lack of ceos ip awareness

lack of ip specialized

training ip specialist