1. Anti-counterfeiting Activities by the Korean Intellectual Property Office June 2006 KIPO The Korean Intellectual Property Office

2. - 1 - Contents IPR Protection in Korea 1 Improving IPR Protection Laws 2 Anti-counterfeiting Activities 3 New Activities for IPR Protection 4

3. - 2 - 1. IPR Protection in Korea □ Strengthening IPR Protection □ Legislative Protection of IPR in Korea Patent, Utility Model, Design, Trademark : Korean Intellectual Property Office(KIPO) Copyright, Sound Record, Video product : Ministry of Culture and Tourism Computer Program : Ministry of Information and Communications Korean Government’s policy - To Improve the IPR Protection system - To strengthen enforcement activities

4. - 3 - 1. IPR Protection in Korea □ Public Prosecutors’ Office Every district prosecutors’ office has ; - Prosecutor who exclusively investigates IPR violations Annual meetings to discuss IP crimes - Prosecutors' Office, Ministry of Foreign Affairs and Trade, Ministry of Culture and Tourism, Ministry of Information and Communication, National Police Agency, Korea Customs Service, Korea Food & Drug Administration, Korean Intellectual Property Office

5. - 4 - 1. IPR Protection in Korea □ Korean Intellectual Property Office(KIPO) Industrial Property Protection Team - Administering the Unfair Competition Prevention and Trade Secret Protection Act, and warning infringement of well-known trademarks - Supporting public prosecutors and the police’s crackdown on counterfeiting □ Korea Customs Service Anti-counterfeiting activities at the earliest stage Export, Import, Transshipment

6. - 5 - Penalties for IPR infringements (2001) Imprisonment: up to 5 years up to 7 years Fine: up to 50M KRW up to 100M KRW Penalties for trade secret infringements (2004) Prosecution requirements : Offense subject to complaint Offense not-subject to complaint Fine: up to 50M KRW up to 2 ~ 10 times the profit Strengthened penalties 2. Improving IPR Protection Laws

7. - 6 - Simple damage calculation(2001) Damage = # of sales of violating goods × Profit for each item Strengthened penalties Easier calculation of damages 2. Improving IPR Protection Laws

8. - 7 - Prohibition rules introduced against unfair competition practices Dilution of well-known marks (2001) Cyber-squatting (2004) Copying the design of goods (2004) - “Dead Copy” - Strengthened penalties Easier calculation of damages New forms of IPR Protection 2. Improving IPR Protection Laws

9. - 8 - 3. Anti-counterfeiting Activities Training for Field Officers Greater Public Awareness Crackdowns on Counterfeit Goods KIPO Relevant Gov. Agencies

10. - 9 - Local governments also have Regular Investigation power Every local governments appoints field officers to do crackdown (250 people) KIPO inspects and evaluates delegated duties, and conducts training Evaluations affect each local government’s performance at the national level “Counterfeiting Report Center” operated by KIPO Reports can be made by phone and the Internet (with guaranteed anonymity) Independent investigations or joint crackdowns by the prosecution or the police are executed in some cases Counterfeiting crackdown performance in 2005 : Stores: 837 (88 criminal charges filed) Quantities: 17,742 (1) Crackdowns on Counterfeit Goods

11. Counterfeiting Report Form via the Internet - 10 -

12. On-site crackdowns of counterfeit goods - 11 -

13. - 12 - 3. Anti-counterfeiting Activities Training for Field Officers Greater Public Awareness Crackdowns on Counterfeit Goods KIPO Relevant Gov. Agencies

14. - 13 - (2) Training and Incentives for Field Officers Training for local governments’ officials On-site courses for field officials and joint investigations in local areas * 19 on-site courses in 2005 (one course: 4~5 days), for 325 field officials “Course on Enforcement of IPRs” at the IP Training Institute Aims to provide investigators of the prosecution, customs officers, police officers and local governments’ officials with increased knowledge and skills in IPR enforcement * 4 classes in 2005 (one course: 5 days), for 219 officers Awards for outstanding field officials Awards given to individuals and one local government (Dec. 2005)

15. - 14 - 3. Anti-counterfeiting Activities Training for Field Officers Greater Public Awareness Crackdowns on Counterfeit Goods KIPO Relevant Gov. Agencies

16. - 15 - (3) Greater Public Awareness Promotion through the “Cyber IP Protection Center” Introduces IP policies and the latest IP news, offers consultations on IPR disputes, reports counterfeit goods. (Established in March 2004) Advertisements on 124 electronic signboards in downtown Publicize the illegality of marketing counterfeit goods (supported by the Government Information Agency) Distribution of educational and informational publications “The Frequently Counterfeited Trademarks List” “Anti-counterfeiting Activities in Korea” “The way of crackdown on counterfeit goods”

17. Cyber IP Protection Center - 16 -

18. - 17 - If you bought a COUNTERFEIT product, you bought a STOLEN product. Public Education through Downtown Electronic Signboards

19. - 18 - “BRAND KOREA” begins with expelling Counterfeits

20. Frequently Counterfeited Trademarks List - 19 -

21. - 20 - 4. New Activities for IPR Protection Anti-counterfeiting Reward System Collaboration among Relevant Agencies - Powerful system for collecting information on counterfeits - Reward(not exceeding 10M KRW ) for report manufacturers, large-scale distributors or sellers ▶ “IPR Protection Policy Council” * 12 Gov. Agencies - Strengthening Crackdown - Improvement Legal Structure & IPR protection recognition ▶ Collaboration among Gov. agencies and IPR owners Upgraded IPR Protection

22. Industrial Property Protection Team Korean Intellectual Property Office(KIPO)