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AHN Jae-Hyun Senior Director. Contents I.Importance of IP Management of SMEs II.Current Status of IP Management of SMEs in Korea III.National IP Action.

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Presentation on theme: "AHN Jae-Hyun Senior Director. Contents I.Importance of IP Management of SMEs II.Current Status of IP Management of SMEs in Korea III.National IP Action."— Presentation transcript:

1 AHN Jae-Hyun Senior Director

2 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

3 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

4 3 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-based Economy IPRs : Sources of competitiveness 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 mgt 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 mgt I.Importance of IP Management of SMEs

5 4 SMEsSMEs R&D IPR Enhancing technical competitiveness Mgt for connecting R&D and IPR GovtGovt 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 I.Importance of IP Management of SMEs

6 5 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

7 6 Increase of SMEs to Produce leading goods Over 2/3 of manufacturers to produce leading goods in the global market are SMEs since Large firms SMEs Strengths and Opportunities II.Current Status of IP Management of SMEs

8 7 Constant increase of SMEs to develop essential technology -Constant increase of medium sized corporations( 50~299 employees) to produce parts and materials % 46.9% Constant increase of R&D centers of SMEs - R&D centers set up by SMEs have exceeded 10 thousand since ,217 8,927 10,894 12,398 Source : Korean Statistics Administation 14, II.Current Status of IP Management of SMEs

9 8 Constant increase of patent filings and registrations by SMEs Patent filings Patent registrations ,969 13,08815,093 18,661 12,705 13,89514,966 20,597 II.Current Status of IP Management of SMEs

10 9 Weaknesses and Threats 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. Korean SMEs are weak against a patent offensive by foreign companies due to the lack of a defensive strategy and competitive essential patents.

11 10 Lack of incentive for invention by employee 29.8% Only 29.3% SMEs gives compensation Only 29.3% SMEs gives compensation for employee inventions for employee inventions * Large firms : 75.0% * Large firms : 75.0% 20.6% 20.6% SMEs have ever lost industrial secrets due to the lack of proper incentives for employee inventions. II.Current Status of IP Management of SMEs

12 11 Lack of CEOs 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 II.Current Status of IP Management of SMEs

13 12 Lack of IP specialized team and staff IP specialized team : 9.4% (07) Large firms : 20.6% 9.4% IP specialized staff : average 2.3 persons (07) average 2.3 persons (07) Large firms : 3.7 persons 160 million 35 million Patent filings & registrations Patent filings & registrations Education & training Lack of education and training IP specialist II.Current Status of IP Management of SMEs

14 13 Contents I.Importance of IP Management of SMEs II.Current Status of IP Management of SMEs in Korea III.National IP Action Plan for SMEs in Korea

15 14 1. Making R&D Effective to Create More IPRs Making R&D effective thru systematic use of patent information Free patent information service (KIPRIS) - Expand the patent information DB million 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 ,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

16 15 Guide for development of essential technologies P revention of patent disputes Analysis of patent information SMEs 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) * III.National IP Action Plan for SMEs in Korea 1. Making R&D Effective to Create More IPRs

17 16 Expansion of employee invention system as catalyst of innovation Inducement of development of essential technologies Preferential Treatment in Various support 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 design Develop and offer design maps to help SMEs develop a good design and prevent design disputes III.National IP Action Plan for SMEs in Korea

18 17 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 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 III.National IP Action Plan for SMEs in Korea

19 18 Reduction 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 Max amount per filing 2.5mil.3 mil. 6 mil. III.National IP Action Plan for SMEs in Korea

20 19 3. Commercialization of IPRs Support 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 : KIPOs survey III.National IP Action Plan for SMEs in Korea

21 20 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) Establishment of Fund of fund (06~07, Total 110 billion KRW) : Invest SMEs or venture companies with excellent patented technology III.National IP Action Plan for SMEs in Korea

22 21 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 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) III.National IP Action Plan for SMEs in Korea

23 22 Improvement of preferential procurement of patented goods Preferntial procurement NEP Testing Agency Testing 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 benefit from various government supports. III.National IP Action Plan for SMEs in Korea

24 23 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 III.National IP Action Plan for SMEs in Korea

25 24 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 (07) Survey of demanded technology Patent 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 III.National IP Action Plan for SMEs in Korea

26 25 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. III.National IP Action Plan for SMEs in Korea

27 26 Future 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 III.National IP Action Plan for SMEs in Korea

28 27 Thank you! ^^


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