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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. 1.

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

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

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

http://in2smile.bnz.co.kr


Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Contents

1

Introduction

2

Importance of SMEs in Korea

3

4

Promote greater use of IP

5

Challenges for the future

Promote the creation & acquisition of IP

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Introduction

The 21st century: Era of Knowledge and information

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

- Shift in requirements for creating added-value:

labor & capital  knowledge & information

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)

1. Changes in the economic environment

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Introduction

To Complete the cycle of value-added creation

Protection

of IP

Use and trade

patented technology

Rapid and correct

acquisition of right

Commercialization

of IP

Acquisition & Creation

of IP

Creation of new technology & revenue

2. KIPO’s main IP strategy

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Importance 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

1. Current status of SMEs in Korea

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Importance of SMEs in Korea

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

2. How many IPRs are owned by SMEs

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Importance of SMEs in Korea

Survey contents

SMEs

Big enterprises

Case of patent holding

PA

T

EN

T

19 (cases)

224 (cases)

Rate of Commercialization

30 %

50 %

20 %

Success rate of registered rights

22 %

3. Survey on the commercialization of patented

technology

The basic data for IPR policy on increasing the use of

patented technology

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Importance of SMEs in Korea

Overall difficulties

  • Insufficient funds

(34%)

  • Marketing

(19%)

  • Counterfeiting

(12%)

  • R&D staff

(10%)

  • Examination period

(9%)

4. Difficulties in using patented technology

Significant for our policy on the commercialization of patents

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

KIPO’s support for SMEs

1. To promote creation & acquisition of IP

2. To promote greater use of IP

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

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 Institute

Creation & Acquisition of IP

1. IPR Acquisition Campaign for SMEs

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

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>

Creation & Acquisition of IP

2. Information service on patented technology (1)

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Production and distribution of patent maps

  • Since 2000, 120 patent maps have been produced

  • Patent Maps are distributed free of charge to SMEs and

    research institutes in the form of CD-ROMs and booklets

 Used for formulating R&D strategy and policies

on industrial technology

Creation & Acquisition of IP

2. Information service on patented technology (2)

 Patent maps are designed to analyze patented technology

and to show trends in technology development

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

KIPO provides IP consultation

  •  For individuals and SMEs

  • Provide appropriate advice before investing in R&D

Consultation procedure

 KIPO designated 25 specialized institutes

 KIPO itself supports 20-40 cases every year

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

Creation & Acquisition of IP

3. IP consultation service

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Greater use of IP

Goal: To promote greater use of IP

Transfer

Financial aid

Marketing

Patentee

Principle

Support varies according to the patentee's ability, financial condition etc.

Basic principle of support

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Greater use of IP

 Facilitates transaction between technology consumers and

providers through the Internet

 Database of 55,000 items of patented technology

 Http:// www.patentmart.or.kr/english

Permanent Patented Technology Market (off-line)

1. Patented Technology trade market

IP-mart (on-line)

 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

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Greater use of IP

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

2. Evaluation of patented technology

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Greater use of IP

Legal base

The act of invention promotion

Objective

Integration and cooperation of commercialization support

programs from the government sector

Financial support in 2003

Total: ₩179 billion (U$149 million)

3. Committee on Patented Technology Commercialization

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Greater use of IP

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

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

3. Committee on Patented Technology Commercialization

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Greater use of IP

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

4. Programs of financial support

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Greater use of IP

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

5. Venture capital fund

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Greater use of IP

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

6. The marketing of patented products (1)

  • - Marketing strategy is vital for commercial success

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Greater use of IP

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 commercialize

superior patented technology

6. The marketing of patented products (2)

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

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

http://in2smile.bnz.co.kr

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Wipo asia regional workshop on ip for managers and staffs of smes and sme support institutions

Thank You

http://in2smile.bnz.co.kr

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