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WIPO Asia Regional Workshop on IP for Managers and Staffs of SMEs and SME Support Institutions

Intellectual Property Strategy for SMEs

- KIPO’s Supporting Programs for SMEs -

Jong-Hyub CHOI

Director General

Intellectual Property Tribunal

Korean Intellectual Property Office


Contents

Introduction1

Importance of SMEs in Korea2

3

4

Challenges for the future5

Promote greater use of IP

Promote the creation & acquisition of IP

- 1 -


Introduction1. Changes in the economic

environment

Importance of intellectual property - From a national point of view, creation & use of IP is essential - A recent report of the Korea Development Institute

Increase of 1%(national patent applications)

Increase of 0.11%(national growth)

- IP is vital in the activities of enterprises (especially SMEs)

- Shift in requirements for creating added-value:

labor & capital knowledge & information

The 21st century: Era of Knowledge and information

- 2 -


Introduction2. KIPO’s main IP strategy

To Complete the cycle of value-added creation

Protection

of IP

Commercialization

of IPAcquisition & Creation

of IP

Use and trade

patented technology

Creation of new technology & revenue

Rapid and correct

acquisition of right

- 3 -


Importance of SMEs in Korea1. Current status of SMEs in Korea

SMEs drive the national economy

• Number of SMEs: 99.8 % of all companies

• Employees: 86.7 % of all employees

SMEs’ role is emphasized more than ever:

they can quickly and flexibly respond to rapid changes in the global economy

- 4 -


Importance of SMEs in Korea2. How many IPRs are owned by SMEs

Ownership ratio of SMEs

* 20 % of all IPRs

Only 7 % of SMEs own more than one IPR

Lack of human resources and inadequate funding and marketing, especially IP creation

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Importance of SMEs in Korea

3. Survey on the commercialization of patented technology

The basic data for IPR policy on increasing the use of

patented technology

22 %20 %Success rate of registered rights

50 %30 %Rate of Commercialization

224 (cases)19 (cases)Case of patent holdingPATENT

Big enterprisesSMEsSurvey contents

- 6 -


Importance of SMEs in Korea4. Difficulties in using patented

technology

- 7 -

Significant for our policy on the commercialization of patents

Overall difficulties

Insufficient funds (34%)

Marketing (19%)

Counterfeiting (12%)

Examination period (9%)

R&D staff (10%)


KIPO’s support for SMEs

1. To promote creation & acquisition of IP2. To promote greater use of IP

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Creation & Acquisition of IP

1. IPR Acquisition Campaign for SMEs

Nation wide explanatory meetings on IPRs

Target: top managers, executives, officials,

IPR-related staff ..etc.

Topics : importance of IPRs, application procedures,

government programs that support creation of IP

Supporting IP training programs for SMEs at the

International Intellectual Property Training Instit

ute

- 9 -



2. Information service on patented technology (1)

Providing a free public service for searching patent information

The service offers information on the Internet

For all IP-related fields such as patents, utility models,

industrial designs and trademarks

Web site: KIPO <http://www.kipo.go.kr>

KIPI <http ://www.kipi.or.kr>

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2. Information service on patented technology (2)

Production and distribution of patent maps

Since 2000, 120 patent maps have been produced

Used for formulating R&D strategy and policies

on industrial technology

Patent Maps are distributed free of charge to SMEs and research institutes in the form of CD-ROMs and booklets

Patent maps are designed to analyze patented technology

and to show trends in technology development

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3. IP consultation service

KIPO provides IP consultation

Consultation procedure

For individuals and SMEs Provide appropriate advice before investing in R&D

KIPO designated 25 specialized institutes

KIPO itself supports 20-40 cases every year

KIPO assists with 75 % of the cost (up to ￦ 15 million)

- 12 -


Greater use of IP Basic principle of support

Goal: To promote greater use of IP

Patentee

Principle

Support varies according to the patentee's ability,

financial condition etc.

Transfer Financial aid Marketing

- 13 -


Greater use of IP1. Patented Technology trade

market

IP-mart (on-line)

Permanent Patented Technology Market (off-line)

Facilitates transaction between technology consumers and providers through the Internet Database of 55,000 items of patented technology Http:// www.patentmart.or.kr/english

Located on the 3rd floor of the Korea Invention Promotion Association selection and exhibition of items registered at the IP- mart Three specialist agencies provide information on market, industry trend and standard contracts

- 14 -


Greater use of IP2. Evaluation of patented

technology

Infrastructure for transferring & commercializing patented technology

Technical evaluation - 29 designated institutions - performance, efficiency, safety of invention

Economic evaluation - 12 designated institutions - market value, potential of commercialization

Evaluation cost Up to 80 % of evaluation cost is subsidized for individuals and SMEs

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Greater use of IP3. Committee on Patented Technology

Commercialization

ObjectiveIntegration and cooperation of commercialization support programs from the government sector

Legal base

The act of invention promotion

Financial support in 2003

Total: ￦ 179 billion (U$149 million)

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Greater use of IP3. Committee on Patented Technology

Commercialization

Major tasks

Upgrade and maintain the systems related to commercialization of patented technology Determine a comprehensive support strategy and scale Coordinate the various policies of government sectors

Participants Ministry of Commerce, Industry & Energy Korean Intellectual Property office Small & Medium Business Administration

Ministry of Agriculture & Forestry

Ministry of Maritime Affairs & Fisheries Rural Development Administration / Korea Forest Service

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Greater use of IP

4. Programs of financial support

Support for producing a prototype of patented technology

After evaluation of the technical and commercial potential,

we assist individuals and SMEs by subsidizing up to 80 %

of the cost of the prototype.

Commercialization rate of the program’s beneficiaries is about 70 %

Financial support for overseas IP applications

To acquire overseas IPRs for active international business

Subsidies up to ￦ 2 million (about $1,700) per case

- 18 -


Greater use of IP

5. Venture capital fund

Venture capital fund for patented technology commercialization

In cooperation with venture capitalists:

- The Korea Development Bank

- The Kibo Technology Advancing Capital Co.

Mainly invested in SMEs with promising patent technology

- 19 -


Greater use of IP

6. The marketing of patented products (1)

SMEs are poor in marketing capability

KIPO's marketing assistance:

Exhibition for superior patented products

Publicity for superior patented products

- eg) The top one hundred Superior Patented Products Selection

- Marketing strategy is vital for commercial success

- 20 -


Greater use of IP

6. The marketing of patented products (2)

Operation of a cyber shopping mall- for selling patented products (opens in Oct. 2004)

Priority purchase recommendation program

Superior inventions are recommended for purchase

by national and local governmental organizations

and government-funded organizations

Publicizing cases which successfully commercializesuperior patented technology

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Challenges for the future

Strengthening the infrastructure for creating and using IP

- Less direct financial support- More studies on new IP policies

Close cooperation with related offices

- to overcome financial limits- to enlarge the extent of support - to introduce many programs for SMEs

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http://in2smile.bnz.co.kr- 23 -

http://in2smile.bnz.co.kr wipo asia regional workshop on ip for managers and staffs of smes and sme...

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