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. 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

Intellectual Property Strategy for SMEs

- KIPO’s Supporting Programs for SMEs -

Jong-Hyub CHOI

Director General

Intellectual Property Tribunal

Korean Intellectual Property Office






Importance of SMEs in Korea



Promote greater use of IP


Challenges for the future

Promote the creation & acquisition of IP


- 1 -


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


- 2 -


To Complete the cycle of value-added creation


of IP

Use and trade

patented technology

Rapid and correct

acquisition of right


of IP

Acquisition & Creation

of IP

Creation of new technology & revenue

2. KIPO’s main IP strategy


- 3 -

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


- 4 -

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


- 5 -

Importance of SMEs in Korea

Survey contents


Big enterprises

Case of patent holding





19 (cases)

224 (cases)

Rate of Commercialization

30 %

50 %

20 %

Success rate of registered rights

22 %

3. Survey on the commercialization of patented


The basic data for IPR policy on increasing the use of

patented technology


- 6 -

Importance of SMEs in Korea

Overall difficulties

  • Insufficient funds


  • Marketing


  • Counterfeiting


  • R&D staff


  • Examination period


4. Difficulties in using patented technology

Significant for our policy on the commercialization of patents


- 7 -

KIPO’s support for SMEs

1. To promote creation & acquisition of IP

2. To promote greater use of IP


- 8 -

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


- 9 -

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)


- 10 -

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


- 11-

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


- 12 -

Greater use of IP

Goal: To promote greater use of IP


Financial aid




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

Basic principle of support


- 13 -

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


 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 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


- 15 -

Greater use of IP

Legal base

The act of invention promotion


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


- 16 -

Greater use of IP


  •  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


- 17 -

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


- 18 -

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


- 19 -

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


- 20 -

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)


- 21 -

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


- 22 -

Thank You


- 23 -

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