1. Korea s Experience Building Intellectual Property Awareness and Economic Development Won-Kil Yoon Director Technical Cooperation Division Korean Intellectual Property Office Cairo, March 18, 2010

2. Contents Major Policies of KIPO and its Role in the Economic Development of Korea Development of IP System in Korea Korea s Economic Development Conclusion

3. Korea in brief Republic of Korea (ROK) – The Land of Morning Calm North Korea – Democratic People s Republic of Korea (DPRK) Land: the eastern end of the Asian continent 1000km long and 216km wide Population : 48.6 million(2008) Capital : Seoul Language: Korean + National flag: Taegeukgi National flower: Mugunghwa (Rose of Sharon) Religion: Buddhist (23.2%), Protestant (19.5%), Roman Catholic (6.6%), others Olympic(1988, Seoul), World Cup(2002) More info: www.visitkorea.or.kr 3

4. Korean Economy: Current Status IndexNum (KOR/World)UnitRankRatio Trade Volume (2007) 728,335 728,335/28,012,600Million USD11 th 2.6% Export (2007) 371,489 371,489/13,898,600Million USD11 th 2.7% GDP (2007) 969.9 969.9/54,347 Billion USD 13 th 1.8% Primary Energy Consumption (2006) 225.8 225.8/10,878.51 Million TOE10 th 2.1% Electricity Production(2006) 402 402/18,930TWh10 th 2.1% Science and Technology Capacity (2008) 11.24OECD index 12 th Number of Patent Applications (2007) 174,896/1,854,416No. 4 th 9.4 % World Ranking: About 11 th, World share: 2% - GDP, Energy consumption, Trade scale… (Source: World Banks World Development Indicator 2009) World s 4 th in terms of Number of IPR applications 4

5. Koreas Economic Development (1) $20,045 in 2007 13 th largest in the world 5-Year Economic Development Plan 6,742 Financial Crisis Around 8% Above 10% 10,307 Miracle on the Han River 5

6. Koreas Economic Development (2) The Korean War (1950-1953) : Destruction of industrial faculties GNP Per Capita : $87 High population density, lack of natural resources GNI Per Capita in 1970: $282 (113 th in the world), Kenya $215, Zimbabwe $285, North Korea $436 Small domestic market, weak technology foundation The Korean War (1950-1953) : Destruction of industrial faculties GNP Per Capita : $87 High population density, lack of natural resources GNI Per Capita in 1970: $282 (113 th in the world), Kenya $215, Zimbabwe $285, North Korea $436 Small domestic market, weak technology foundation 1961: One of the Poorest Countries in the World After 1970, average annual economic growth rate: 12.2% Major success factors - Governments will and planning, diligence and entrepreneurship of people, Social atmosphere respecting science, technology, and invention After 1970, average annual economic growth rate: 12.2% Major success factors - Governments will and planning, diligence and entrepreneurship of people, Social atmosphere respecting science, technology, and invention In 1970, the 5-year Economic Development Plan started yielding desired results 1970: Start of Economic Development 6

7. Farming population: 60% of the total population Supply of resources almost wholly dependent on foreign aid. 1960s Export-oriented economy 1970s Promotion of labor-intensive industries (Textile, Shoes, Plywood) 1980s ~ Heavy and chemical industries (Cars, Ships, Steel, Oil, Chemical) Systematic promotion of science and technology Before the 1960s 1960s and beyond Korea s Economic Development (3) 7

8. 1980s Implementation of National R&Ds, such as TDX; and establishment of more private research centers 1990s Fostering of the IT industry, such as semiconductor and communication equipment manufacturing 1980s Implementation of National R&Ds, such as TDX; and establishment of more private research centers 1990s Fostering of the IT industry, such as semiconductor and communication equipment manufacturing 1960s 1966: Establishment of the Korea Institute of Science and Technology (KIST) 1967: Establishment of the Ministry of Science and Technology 1970s Construction of the Daedeok Research Complex, which is the center of science and technology research, a specialized cluster for R&D 1960s 1966: Establishment of the Korea Institute of Science and Technology (KIST) 1967: Establishment of the Ministry of Science and Technology 1970s Construction of the Daedeok Research Complex, which is the center of science and technology research, a specialized cluster for R&D Laying the foundation for science and technology development 8

9. The Korean Economy: past and present (1/2) 9

10. - Opening Markets - Restructuring Industry Sectors 2008 Services Agriculture- Fisheries Manufacturing 1960 Manufacturing Agriculture- Fisheries Services The Korean Economy: past and present (2/2) Changes in Industrial Structure 10

11. LG Electronics, Samsung Electronics 22.3 (1)Air-conditioners Samsung Electronics, LG Electronics. 14.3 (1)Refrigerators Hyundai Heavy Industries, Doosan Engine Co., STX Heavy Industries 59.6 (1) Large diesel engines for ships Hyundai Heavy Industries, Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering Co. 80.0 (1) LNG carriers Hyundai-Kia Motors, GM Daewoo 9.8 (4) Automobiles Samsung Electronics, LG.Philips LCD 46.5 (1) TFT-LCDs Samsung Electronics, Hynix Semiconductor 49 (1)Semiconductors Company World market share % (Rank) Product Petrochemical products LG Chem, SK 45 (1) Industrial Power of Korea: some facts… 11

12. Development of IP System in Korea

13. History of IP Administration (1) 1961 Enactment of Modern IPR laws and regulations Patent, utility model, trademark, industrial design 1980s Supplementary IPR laws and regulations to meet international standards 1990s Development of automated IP administration system Large increase in the strategic utilization of IPR 2000 ~ Expanding International cooperation on IPR Enhanced IPR enforcement 1961 Enactment of Modern IPR laws and regulations Patent, utility model, trademark, industrial design 1980s Supplementary IPR laws and regulations to meet international standards 1990s Development of automated IP administration system Large increase in the strategic utilization of IPR 2000 ~ Expanding International cooperation on IPR Enhanced IPR enforcement 13

14. History of KIPO History of IP Administration (2) 1908: Enactment of the Patent Decree 1977: Establishment of KIPO as an independent office under the Ministry of Commerce and Industry 1998: KIPO moved its headquarters from Seoul to Daejeon 2006: KIPO was transformed into an enterprise-style, performance-based government agency 1949: Establishment of the Patent Bureau under the Ministry of Commerce and Industry 14

15. Director General for Planning and Coordination Industrial Property Policy Bureau Information Policy Bureau Customer Support Bureau Trademark and Design Examination Bureau Machinery, Metals and Construction Examination Bureau Chemistry and Biotechnology Examination Bureau Electric and Electronic Examination Bureau Audit and Inspection Officer Spokesperson International Intellectual Property Training Institute Intellectual Property Tribunal Seoul Branch Office Commissioner Human Resource Development Division / General Service Division Spokesperson Examination Quality Assurance Officer Information and Communications Examination Bureau Commissioner Deputy Commissioner International Intellectual Property Training Institute Seoul Branch Office Organization of KIPO 15

16. KIPO Personnel Regular staff: 1,548(10.2) Examiners :838 - 712 for patents and utility models - 126 for trademarks and industrial designs 392 have PhDs in various technical fields.(36.3%) Trial examiners: 148 16

17. Korean IP Applications Designs 6,018 10,394 18,731 20,097 29,859 36,867 51,039 56,296 Trademarks 11,037 15,755 28,031 46,612 85,062 107,137 122,384 127,139 Utility Models 8,373 9,064 22,401 25,895 68,822 40,804 32,908 17,226 Patents 3,261 5,303 12,759 28,132 90,326 104,612 166,189 167,904 Total 28,689 40,516 81,922 120,736 274,069 289,420 372,520 368,565 17

18. PCT Applications & Requests for PCT International Search Number of PCT applications Number of requests for PCT international search 18

19. Based on the number of registrations at each office Based on the number of registrations at each office Based on the nationality of patent holders [Source: WIPO World Patent Indicator, 2009) Number of valid patents by nation (2007) 19 Ranking Top 3 rd in the World!

20. Statistical Overview Worlds 4 th in Number of IPR applications Number of requests for PCT International Search Worlds 4 th in Number of applications under the Patent Cooperation Treaty Number of patents in force per 100,000 inhabitants 20

21. Relationship between IPR applications & economic growth (1) Advancement in Technology Increase in patent applications 1% Increase in patent applications 0.11% economic growth Rate of increase in patent applications is closely related to economic growth rate increase. Advancement in Technology Increase in patent applications 1% Increase in patent applications 0.11% economic growth Rate of increase in patent applications is closely related to economic growth rate increase. Report of the Korea Development Institute (KDI) Economic Growth Patent Application Technology Innovation 21 IPR competency in ranking top 4 th Koreas Economic Advancement

22. 0 50,000 100,000 150,000 200,000` 250,000 19701975198019851990199520002008 Number of applications 0 100 200 300 400 500 600 700 800 900 GDP (billion dollars) No. of applications GDP of Korea Synchronization between No. of applications and economic growth Relationship between IPR applications & economic growth (2) 22

23. Major Policies of KIPO and its Role in the Economic Development of Korea

24. Intellectual property Neo-IPRs Patents (including plant varieties) Utility models Industrial designs Trademarks : Korean Intellectual Property Office : Ministry of Culture and Tourism Industrial property Copyright Computer programs Layout Designs of Semiconductor Integrated Circuits Design layout of semiconductor integrated circuits Prevention of unfair competition Protection of trade secrets Traditional knowledge Geographical indicators IP Administration in Korea 24

25. Overview of KIPO s IPR Policies 3. Raising IP experts4. Protection of IPR 2. Creation and utilization of strong patents IP capacity building for SMEs and Universities Timely support in technology development and commercialization Raising IP specialists in SMEs Raising student and women inventors Seizing counterfeit goods Enhanced IP Protection Awareness 1. Building IP Awareness Providing IP information services (KIPRIS) Providing training opportunities in IP Upgrading industry competence by IPR 25

26. KIPOnet: Brief Introduction Paperless and fully computerized IPR system Consists of 48 subsystems KIPOnet is a fully integrated IP automation system. It handles applications and various aspects of internal administration on all kinds of IPRs KIPOnet is a fully integrated IP automation system. It handles applications and various aspects of internal administration on all kinds of IPRs 26

27. Korea has one of the highest e-filing rates in the world It was the worlds first Internet-based e-filing system for patent applications. An IP automation plan was established in 1995. The development phase lasted three years. 2007 100 80 60 40 USAEU Republic of Korea Japan 32% 49% 97% % Launch of the KIPOnet 27

28. Major Features of KIPOnet System 28 Work-at-Home System Work-at-Home System 24X7 Non-Stop Service

29. 1. Quality-focused Examinations Quantity Quality Paradigm Shift: Change in corporate IP strategy The focus is on strong, high-quality IPRs rather than the quantity of applications. Policy Direction on IPR (1/5) Transforming into an IP nation in the 21 st century. 29

30. 2. EXCEL (EXamination exCELlence) Plan Measures to optimize the examination infrastructure Putting emphasis on vigorous search of non-patent literature Improving the automatic machine translation system Measures to enhance examination quality Implementing an individual self-diagnostic system for examination quality Establishing new examination divisions dedicated to newly emerging integrated technologies Measures to maximize efficiency in examination quality management Systemizing standard operating procedures for searches and examinations in each examination bureau Implementing a Responsible Management System, where director generals and directors take full responsibility for the quality of the examination results of their respective bureaus and divisions. Policy Direction on IPR (2/5) 30

31. 3. Customer-tailored Patent Examination System Three-track Examination System Accelerated Examination : Within 3 months of the date of the request for examination Customer-deferred Examination : Within 3 months of the date specified by the customer Customer-tailored patent examination system AE CE RE - Customers can choose an accelerated track, a regular track or a customer-deferred track. Accelerated Examination Regular Examination Customer-deferred Examination Policy Direction on IPR (3/5) 31

32. 4. International Cooperation under the new IP5 Framework Work-Sharing among the IP5 offices Work-sharing: a way of tackling examination backlogs Policy Direction on IPR (4/5) Bilateral cooperation and the PPH Support for SMEs, * Cooperation on IPR education, Establishing experts meetings * Exchange of staff and examiners, 32

33. 5. Developing country support using IP Policy Direction on IPR (5/5) Cooperating with WIPO based on Korea Funds-in-Trust Establishment of the Korea Funds-in-Trust at WIPO(2004) -To support developing and low income countries in strengthening their IP capacity About 2 Million USD has been spent in 22 fields Practical support through educational programs on the use of IPR, technology transfer IP-based support programs Objectives: To help local communities increase their income through the utilization of IP To provide technological solutions to the basic necessities of life One Village One Brand Objectives: To increase product sales volume through the creation of brands Pilot project (2008): designing a brand and securing a trademark for East Timor coffee 33

34. Conclusion Quality focused Examinations and International cooperation Quality focused Examinations and International cooperation Creation and promotion of strong IPRs Advancing domestic and foreign protection of IPRs 34

35. Thank you شكرا جزيلا Won-Kil YOON Director, Technical Cooperation Division Korean Intellectual Property Office (KIPO) Tel. +82 (42) 481-8254 Fax. +82 (42) 472-9313 E-mail: wonkil@kipo.go.kr