1. KIPO’s Policies on IP Marketplace Choongjae Lee Intellectual Property Promotion Division KIPO (Korean Intellectual Property Office)

2. Contents 1.Overview of KIPO’s IP Policies 2. Background of IP Marketplace in Korea 3. KIPO’s Policies on IP Transfer and Commercialization 4. Future Plans of KIPO 2

3. KOREAN INTELLECTUAL PROPERTY OFFICE Overview of KIPO’s IP Policies 1 3

4. Introduction of KIPO Management of patents, utility models, trademarks, and designs Affairs of Patent Examination & Trial, Creation, Use and Protection of IPRs Staff of about 1,500 4

5. Overview of KIPO’s IP Policies 5 IP Creation IP Protection IP Awareness IP Utilization

6. Overview of KIPO’s IP Policies IP Creation Providing infrastructure for ‘strong’ IP creation Making R&D effective through the systematic use of IP information IP Utilization IP Transfer IP Commercialization IP Protection Quality-focused examination Crackdown on the distribution of counterfeits Protection of trade secrets 6

7. KIPO’s budget for IP Policy of 2012 (Total 222 billion KRW) 7

8. KIPO’s Budget for IP Policy of 2012 (Total 222 billion KRW) Examination & Trial 44.1 (2010)  53.0 (2012) 20. 1% increase IP Creation 92.8 (2010)  96.9 (2012) 4.5% increase IP Utilization 8.1 (2011)  9.7 (2012) 19.8% increase IP Protection 10.6 (2011)  12.4 (2012) 16.5% increase Unit: Billion KRW 8

9. \\ KOREAN INTELLECTUAL PROPERTY OFFICE Background of IP Marketplace in Korea 2 9

10. Structure of IP Marketplace 10 IP Marketplace Transfer Intermediaries IP EvaluationIP Finance IP Suppliers IP Demanders

11. Status of Korea’s IP Marketplace Number of Technology Transfer Intermediaries in 2011: 59 (public: 22, private: 37) Number of IP Evaluation Institutes in 2011: 9 Estimated No. of technology transfers through the intermediaries in 2010: About 1,000 Estimated amounts of transfer through the intermediaries in 2010: 40 billion KRW 11

12. Background for IP Marketplace in Korea The rate of technology transfer from public research institutes. –It is low compared to the USA, and EU. * USA 26.4%, EU 33.5%, Canada 36.0% in 2010 * Ministry of Knowledge Economy 12 200820092010 No. of transfer 3,2123,4684,259 Rate of transfer (%) 22.222.723.1 Royalty( billion KRW) 128.8101.7124.5

13. Background for IP Marketplace in Korea 13 Only a minority of patented technologies are commercialized. –In 2010, 56.5% of patents were commercialized in companies. –30.3% of patents were commercialized in universities and public research institute. (2010, Korea Institute of Intellectual Property)

14. Background for IP Marketplace in Korea SMEs’ obstacle against commercialization of IP (2010, Korea Institute of Intellectual Property) 14

15. KOREAN INTELLECTUAL PROPERTY OFFICE Policies on IP Transfer & Commercialization 3 15

16. Process of IP Transfer & Commercialization IdeaIP(patents)Prototype Financing Production Marketing Sales 16 Licensing KIPO Examination Registration Manufacture of prototype IP-Mart IP Evaluation Consulting Management of IP

17. Operation of IP-Mart Online IP-Mart –Online IP-Mart promotes the transfer of IP by connecting suppliers with demanders. –Anybody can search online for a desired technology in the website containing a database of 57,000 patents. 17

18. Operation of Online IP-Mart 18

19. Operation of Online IP-Mart 19

20. Operation of IP-Mart An offline IP-Mart was established to promote sales of patented goods and technologies. 20 Exhibition Center Success Case of Technology Transfer Excellent Patent Technologies Patent transfer consulting room Any time consulting Internet PC System for visitors IP Library Holds about 4,000 IP related books Rooms for conference and seminar

21. Demander-Oriented IP Transfer System 21 Patent auction system Reduce the cost of search for demanded IP Higher rate of success of IP transaction through online negotiation Survey of demanded IP Conduct a survey of demanded IP Search for fitting IP IP transaction experts Help and promote IP transactions Provide a customized consultation for IP transaction

22. Operation of IP-Mart 22

23. Financial support for IP Evaluation KIPO supports the cost of IP valuation. –For individuals or SMEs (Small & Medium Enterprises) The individuals or SMEs use the results of IP valuation in financing for commercialization, M&A, marketing and IP transfer. 23

24. Establishment of the IP Evaluation System Automatic Evaluation System: “SMART” (Systematic Measuring And Rating patent of Technology) Developed from Jun 2009 to Dec 2010 –Developing cost: 1.8 billion KRW Show the evaluation results by 9 grades –ex) AAA, AA, A, BBB, BB, …, C –For technology, IP right and market 24

25. Establishment of the IP Evaluation System Sample of evaluation report 25

26. Support for Manufacture of Prototype Support for making a prototype of a patent 26 1 st Step 3D design by Computer Graphic 2 nd Step Manufacturing a prototype Simulation Actual Design

27. Promotion of the Use of the State- owned Patents Government-owned patents that have been idle for 3 years following registration may be used by anyone. –For 3 years without charge KIPO will entrust government-owned patents to private IP transfer intermediaries for transfer and commercialization. 27

28. KOREAN INTELLECTUAL PROPERTY OFFICE Future Plans 4 28

29. Future Plans Framework Act on Intellectual Property (May 19, 2011) –To promote IP creation, protection and utilization, and to provide infrastructure thereof –Start of Presidential Council on Intellectual Property (July, 2011) Providing total services for transfer, commercialization and marketing –Demander-oriented customized services Fostering the IP Services Business 29