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

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

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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 creation• Making R&D ef-fective through the systematic use of IP information

IP Utilization

•IP Transfer•IP Com-mercializa-tion

IP Protection

•Quality-focused examination•Crackdown on the distribution of counterfeits•Protection of trade secrets

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

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Examination; 2012; 53; 31%

IP Creation; 2012; 96.9; 56%

IP Utilization; 2012; 9.7; 6%

IP Protection; 2012; 12.4; 7%

2012

Examination IP Creation IP Utilization IP Protection

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

Examination & Trial44.1 (2010) 53.0 (2012) 20. 1% increase

IP Creation92.8 (2010) 96.9 (2012)4.5% increase

IP Utilization8.1 (2011) 9.7 (2012)19.8% increase

IP Protection10.6 (2011) 12.4 (2012)16.5% increase

Unit: Billion KRW

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Structure of IP Marketplace

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IP Marketplace

Transfer Intermediaries

IP Evaluation IP Finance

IP Suppliers IP Demanders

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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

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

transfer 3,212 3,468 4,259

Rate of transfer

(%)22.2 22.7 23.1

Royalty(billion KRW)

128.8 101.7 124.5

Background for IP Marketplace in Korea

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• 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)

Background for IP Marketplace in Korea

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

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Shortage of Fund35%

Lack of Manpower33%

Marketing & Sales

17%

Others; 판매 ; 14.5;

14%

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Process of IP Transfer & Commercialization

Idea

IP(patents)

Prototype

Fi-nancingProduction

Marketing

Sales

Licensing

KIPO

Examination 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 demanders.

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

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Operation of Online IP-Mart

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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 Prototype

• Support for making a prototype of a patent

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1st Step•3D design by Com-puter Graphic

2nd Step•Manufacturing a prototype•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 intermediaries for transfer and commercialization.

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 Business20