KIPO’s Policies on IP Marketplace Choongjae Lee Intellectual Property Promotion Division KIPO (Korean Intellectual Property Office) 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 2 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 4 Overview of KIPO’s IP Policies IP Creation IP Awareness IP Protection IP Utilization 4 Overview of KIPO’s IP Policies IP Creation IP Utilization • Providing infrastructure for ‘strong’ IP creation • Making R&D effective through the systematic use of IP information • IP Transfer • IP Commercialization IP Protection • Quality-focused examination • Crackdown on the distribution of counterfeits • Protection of trade secrets 5 KIPO’s budget for IP Policy of 2012 (Total 222 billion KRW) 2012, IP Examination Protection, 2012, IP 12.4, 7% Utilization, 9.7, 6% IP Creation IP Utilization Chart Title IP Protection 2012, Examination, 53, 31% 2012, IP Creation, 96.9, 56% 6 KIPO’s Budget for IP Policy of 2012 (Total 222 billion KRW) Examination & Trial IP Creation 44.1 (2010) 53.0 (2012) 92.8 (2010) 96.9 (2012) 20. 1% increase 4.5% increase Unit: Billion KRW IP Utilization IP Protection 8.1 (2011) 9.7 (2012) 10.6 (2011) 12.4 (2012) 19.8% increase 16.5% increase 7 Structure of IP Marketplace IP Suppliers Transfer Intermediaries IP Demanders IP Marketplace IP Evaluation IP Finance 8 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 9 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 2008 2009 2010 No. of transfer 3,212 3,468 4,259 Rate of transfer (%) 22.2 22.7 23.1 Royalty(b illion KRW) 128.8 101.7 124.5 * Ministry of Knowledge Economy 10 Background for IP Marketplace in Korea • 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) 11 Background for IP Marketplace in Korea • SMEs’ obstacle against commercialization of IP (2010, Korea Institute of Intellectual Property) 판매, Others, 14.5, 16% Shortage of Fund 35% Lack of Manpower 33% Marketing & Sales 17% 12 Process of IP Transfer & Commercialization Licensing Idea IP(patents) Examination Registration Financing Production Prototype Manufacture of prototype IP-Mart IP Evaluation Marketing Sales Consulting Management of IP KIPO 13 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. 14 Operation of Online IP-Mart 15 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 16 Establishment of the IP Evaluation System • Sample of evaluation report 17 Support for Manufacture of Prototype • Support for making a prototype of a patent 1st Step 2nd Step • 3D design by Computer Graphic • Manufacturing a prototype • Simulation • Actual Design 18 Promotion of the Use of the Stateowned 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. 19 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 Business 20