KIPO’s Policies on IP Marketplace

Choongjae LeeIntellectual Property Promotion Division

KIPO (Korean Intellectual Property Office)

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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

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KOREAN INTELLECTUAL PROPERTY OFFICE

Overview of KIPO’s IP Policies

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Introduction of KIPOManagement of patents,

utility models, trademarks, and designs

Affairs of Patent Examina-tion & Trial, Creation, Use and Protection of IPRs

Staff of about 1,500

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Overview of KIPO’s IP Policies

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IP Creation

IPProtection

IPAwareness

IPUtilization

Overview of KIPO’s IP Policies

IP Creation

• Providing infra-structure for ‘strong’ IP cre-ation• Making R&D ef-fective through the systematic use of IP informa-tion

IP Utilization

• IP Transfer• IP Commercial-

ization

IP Protection

• Quality-fo-cused examina-tion

• Crackdown on the distribution of counter-feits

• Protection of trade secrets

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

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31%

56%

6%7%

2012

Examination IP Creation IP Utilization IP Protection

KIPO’s Budget for IP Policy of 2012(Total 222 billion KRW)

Examina-tion & Trial44.1

(2010) 53.0

(2012) 20. 1% in-

crease

IP Creation92.8 (2010) 96.9 (2012)

4.5% increase

IP Utilization8.1 (2011) 9.7 (2012)

19.8% increase

IP Pro-tection

10.6 (2011)

12.4 (2012)

16.5% in-crease

Unit: Billion KRW

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KOREAN INTELLECTUAL PROPERTY OFFICE

Background of IP Marketplace in Korea

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Structure of IP Marketplace

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IP Marketplace

Transfer In-termediaries

IP Evaluation IP Finance

IP Suppli-ers

IP De-manders

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Status of Korea’s IP Marketplace

• Number of Technology Transfer Interme-diaries 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

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

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2008 2009 2010No. of trans-

fer3,212 3,468 4,259

Rate of

trans-fer (%)

22.2 22.7 23.1

Roy-alty(billion KRW)

128.8 101.7 124.5

Background for IP Marketplace in Korea

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• Only a minority of patented tech-nologies are commercialized.– In 2010, 56.5% of patents were com-

mercialized in companies.– 30.3% of patents were commercialized

in universities and public research insti-tute. (2010, Korea Institute of Intellec-tual Property)

Background for IP Marketplace in Korea

• SMEs’ obstacle against commercialization of IP (2010, Korea Institute of Intellectual Property)

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Shortage of Fund

35%

Lack of Manpower

33%

Market-ing & Sales17%

Others14%

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KOREAN INTELLECTUAL PROPERTY OFFICE

Policies on IP Transfer & Commercialization

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Process of IP Transfer & Commer-cialization

Idea IP(patents) Prototype FinancingProduction

MarketingSales

Licens-ing

KIPO

Examina-tion Registration

Manufacture of prototypeIP-Mart

IP Evaluation ConsultingManagement of IP

Operation of IP-Mart• Online IP-Mart

– Online IP-Mart promotes the transfer of IP by connecting suppliers with deman-ders.

– Anybody can search online for a desired technology in the website containing a data-base of 57,000 patents.

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Operation of Online IP-Mart

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Operation of Online IP-Mart

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Operation of IP-Mart

• An offline IP-Mart was established to promote sales of patented goods and technologies.

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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

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Demander-Oriented IP Transfer System

Patent auction system

• Reduce the cost of search for demanded IP

• Higher rate of success of IP transaction through online negotiation

Survey of de-manded IP

• Conduct a sur-vey of de-manded IP

• Search for fit-ting IP

IP transaction experts

• Help and pro-mote IP trans-actions

• Provide a cus-tomized consul-tation for IP transaction

Operation of IP-Mart

2006 2007 2008 2009 2010

3446

72

100

140

No. of IP Transfer through IP-Mart op-erated by KIPO

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Financial support for IP Evaluation

• KIPO supports the cost of IP valua-tion.– For individuals or SMEs (Small & Medium

Enterprises)

• The individuals or SMEs use the re-sults of IP valuation in financing for commercialization, M&A, marketing and IP transfer.

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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

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Establishment of the IP Evaluation System

• Sample of evaluation report

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Support for Manufacture of Proto-type

• Support for making a prototype of a patent

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1st Step• 3D design by Computer

Graphic

2nd Step• Manufacturing a proto-

type• Simulation• Actual Design

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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 inter-mediaries for transfer and commer-cialization.

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KOREAN INTELLECTUAL PROPERTY OFFICE Future Plans

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Future Plans

• Framework Act on Intellectual Prop-erty (May 19, 2011)– To promote IP creation, protection and utiliza-

tion, and to provide infrastructure thereof– Start of Presidential Council on Intellec-

tual Property (July, 2011)

• Providing total services for transfer, commercialization and marketing– Demander-oriented customized services

• Fostering the IP Services Business

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