Showcasing a National Showcasing a National
Experience: Experience:
Means to Facilitate the Protection and Means to Facilitate the Protection and
Use of Software in KoreaUse of Software in Korea
Colombo, May 30, 2007
Lee, Kyoung-Hwa
Korea Software Copyright Committee(SOCOP)
I.1. The Status of Software Industry in Korea I.1. The Status of Software Industry in Korea
Internet
Internet
Mobile Network
Wireless LAN
Gateway
Internet Service (1999~2001)Mobile Service (2002~2004)
Ubiquitous Service (2005~2007)
Embedded SW as Key Driving Engines
Paradigm Shift in Technology * Source : KIPA
Growth of Software Industry
2002 2003 2004 2005 2006
SW Piracy Rate 50 48 46 46 45
Losses($M) 425 462 506 400 440
* Source : 2006 BSA/IDC Global SW Piracy Study (released May 2007)
Status of Software Piracy
18.2
23.5
2002 2006
0.91.0
2002 2006
Production ($B)
Export ($100M)
4.7
12.5
0.91.0
1996
2.70.2
0.9
1996
0.6
2002 2006
5,601
7,931
1996
1,556
No. of SW Companies
I.2. The Status of Software Industry in Korea I.2. The Status of Software Industry in Korea
Korean SW Share in Global Market (%)
SW Value Added Share in GDP (%)
* Source : KIPA
I.3. Korea’s Approach to Software IndustryI.3. Korea’s Approach to Software Industry
• IPR Registration• IPR Dispute Mediation• Public Awareness Campaign• Illegal Piracy Crackdown
SW IndustryPromotion
SW IPR Protection
• Marketing Strategy Development• Skilled Workforce Training• Strategic Software Promotion• Overseas Market Expansion
II.1. Software Industry Promotion II.1. Software Industry Promotion
Marketing Strategy Development
2006 2006
Holding a Global IT Service Provider Promoting Domestic Package SW Company Elevating Quality Competitiveness
No. of Top 100 Global Companies
1
3
38
54
No. of SW Sales $10M Club Companies
21.5
24.9
Domestic Package SW Market Share (%)No. of CMMI Certified Companies
No. of GS Certified Companies
2(’03)
33
59
462
Public Demand Creation : e-Government Projects, u-Projects
Overseas Market : Export Consulting, Overseas Market Expansion
Quality Innovation : Building Infrastructure for Quality Test,
Developing Systems for Quality Certification
2002 20062002 2002
* Source : KIPA
II.2. Software Industry Promotion II.2. Software Industry Promotion
Strategic Software Promotion
2002 2006
Embedded SW Opensource SW
Market Size ($B)
8.3
2002 2006.3Q
Linux Application Rate for Central Government Organizations (%)
19.1
27.4
Linux Share in Server Market (%)
2002 2006
11.0
25.4
4.3
Annual Increase of
19.6%
Building Infrastructure for Industry : Nurturing Skilled Workforce (OSS:
2,607, ESW: 1,513)
R&D Investment: Domestic Embedded SW (Qplus), OSS Platform
(Booyo) Development
Market Application: NEIS, e-Administration, National Defense SW
* Source : KIPA
IPR Dispute MediationIPR Dispute Mediation
IPR Registration IPR Registration
Public Awareness CampaignPublic Awareness Campaign
III. Software IPR Protection III. Software IPR Protection
Illegal Piracy Crackdown Illegal Piracy Crackdown IV
IPR LegislationIPR LegislationV
III
II
I
III.1. Dispute Mediation III.1. Dispute Mediation
Mediation
Why Mediation?
Mediation facilitates the amicable resolution of IPR disputes
with assistance of mediation panel consisting of three
specialists who represents the legal, academic, and industrial
sectors
No. of Dispute Mediation Takes on average 50 days
Low cost compared to a lawsuit
Protects trade secrets
Effects as court settlement when parties
accept the mediation 200620042002
46
2035
65.5
64
Resolution Rate (%)No. of Dispute Mediation
31.3
III.1.1. Software Appraisal III.1.1. Software Appraisal
Appraisal
Subject to Appraisal
Appraisal provides decisive evidence of IPR violation
rendered by the appraisal experts pool and appraisal software
(exeyes) upon request of mediation parties, courts and
prosecutors
No. of Appraisal SW reproduction
Completion of SW development
SW development cost
Other documents & database 200620042002
39
2822
III.1.2. Mediation Case III.1.2. Mediation Case
Compensation for Damages Caused by Infringement of Game Program Copyright
Developer A was working for Company X and, after leaving the company, A
developed the similar game program, which he currently operates through
Company Y’s website. X alleged that A illegally sneaked the source code of X
for his professional use. X applied for mediation to demand compensation for
damages caused by the infringement of their program copyright
During the mediation, a cross-check of both parties was made. X admitted
that there had been no illegal copy of the source code. An amicable agreement
was made since X committed not to raise any further questions in this matter
Since game program is a complex copyrighted work in nature, the Mediation
panel advised to be cautious with copyright infringement
III.1.3. Appraisal Case III.1.3. Appraisal Case
Developer A is employed by Company X and developed the e-
Learning Program as assigned by X. During the development,
A leaked the program under development and established
Company Y in secret
After completion of the program, A left X and started a business in Y on the basis of the same program. After realizing this, X sued Y for copying its program and the district prosecutor’s office applied to SOCOP for an appraisal of the similarities
The programs were found to be similar after the appraisal
Appraisal of Similarities in e-Learning Programs
Registration
Registration verifies the origins of programs and explains
transfers regarding the ownership of the copyright
III.2. Software RegistrationIII.2. Software Registration
No. of SW registration
200620042002
9505
8917
9141
Registration Effects
Presumption of the creation date
Verification of the creation
Presumption of negligence on the part
of the infringer
Defense against the third party
Online Registration
Online registration launched in
2004, and have gradually increased
its share in the whole registrations
III.2.1. Online Software RegistrationIII.2.1. Online Software Registration
No. of On/Offline Registration
200620052004
5459 (57.5)
2601 (39.5)
4849 (51.8)
4046 (42.5)4516 (48.2)
No. of Offline (%)No. of Online (%)
6540 (60.5)
Escrow
Escrow guarantees the safe use
of software by depositing the
source code with the SOCOP
The user can use the software
with stability even when the right
holder is troubled with
bankruptcy, natural disasters,
loss or damage to the source
code
III.2.2. Software EscrowIII.2.2. Software Escrow
User
Right Holder
SOCOP
No. of SW Escrow
200620042002
79
4
68
SW Escrow Agreement
Escrow Package
License Agreement Release Escrow Package
III.3 Public Awareness Campaign III.3 Public Awareness Campaign
Discounted Software Sales
Public Education
SW companies made special software
offers of up to 40% discount for the
‘Hello! SW Copyright’ event to public,
especially SMEs in Korea
200520052004200420032003
SW Academy
Visiting Edu.
4(86)
20(2,010)
5(180)
50(6,717)
5(163)
159(68,655)
4(112)
33(4,885)
20062006
No. of Classes(No. of Students)
III.3.1. Public Awareness Campaign III.3.1. Public Awareness Campaign
Posters
III.3.2. Public Awareness Campaign III.3.2. Public Awareness Campaign
TV Commercial Flash Animation
III.4. Software Piracy Crackdown III.4. Software Piracy Crackdown
Standing Inspection Team
Inspection Activities
200520052004200420032003
SIT Members
SIT Raids
32
1,760
61
2,537
61
2,172
20062006
61
2,514
Standing Inspection Team (SIT) under the Ministry of Information
and Communication has been granted special police powers in
2003 to ensure the effectiveness of inspection, and conducts
inspection against software piracy
Self-Inspection Tools
Software Asset Management Consulting
III.4.1. Software Piracy Inspection III.4.1. Software Piracy Inspection
To understand the actual conditions of SW
use and ownership
Reduce the total cost of ownership (TCO)
through the systematic management of SW
assets
Free self-Inspection software (inspector 3.1)
* 29,830 Distributed (2004 ~ 2006)
• Network-based inspection (net inspector)
Online Monitoring
Standing monitoring against
illegal file-sharing service
through online (P2P, Web Storage
etc.)
III.4.2. Online Piracy CrackdownIII.4.2. Online Piracy Crackdown
No. of Online Monitoring
200620052004
620
124
500
SW Piracy Report Center
III.5 IPR Legislation III.5 IPR Legislation
Reinforced IPR Legislation
The 10th Amendment of Computer Program Protection Act
(CPPA) was made for prompt and effective enforcement
against online software piracy
* The amended CPPA is effective from April 5, 2007
Corrective recommendation against Online Service Providers’
illegal distribution of copyrighted works (CPPA, Art. 34.3)
Reinforced criminal penalty up to 5 years imprisonment or a
50 million won ($50,000) fine
* Habitual criminals : up to 7 years imprisonment or a 70 million won
($70,000) fine (CPPA, Art. 46)
III.5.1. IPR Legislation III.5.1. IPR Legislation
The Republic of Korea and the United States concluded a free
trade agreement on April 1, 2007 that will provide high-level
standards for protection and enforcement of IPR
Protection of rights over temporary copies
Extended terms of protection for copyright
* life of the author plus 70 years
Strengthened protection for technological protection measure
Reinforced liabilities of online service providers
KORUS Free Trade Agreement
Thank you!