1. KIPO, enhances on-line service.

On the 15^th of this month, the KIPO announced the four task promotion plans: (1) payment of service charges by mobile phones; (2) introduction of the system to certify the general power of attorney by mobile phones; (3) combination of electronic application softwares; and (4) overall reorganization of the electronic application site (Patent Road), so that applicants may proceed with the patent application procedure more conveniently.

Above all, the KIPO will provide a mobile payment service for patent fees from December of this year, so as to facilitate a system to pay service charges by mobile phones. If the mobile payment system starts, it is expected to prevent the loss of applicant’s rights resulting from unpaid service charges as well as to improve the convenience of applicants.

2. Multinational pharmaceutical companies, who oppose ‘patent restriction law’ to “submit a lawsuit against the Korean government to WTO.”

Multinational pharmaceutical companies indicated that they are opposed to the introduction of a law for restricting the abuse of patent rights and thus, they are in preparation of filing a lawsuit to the WTO with each pharmaceutical company to provide opposition to the Korean government’s plan to enforce the legislation. The Korean Ministry of Health and Welfare has submitted an amendment of the National Health Insurance Act to restrict the abuse of patent rights by multinational pharmaceutical companies. According to this legislative bill, if a pharmaceutical company that has an original drug delays the release of generic drugs using existing patent law, the Korean National Health Insurance Corporation can reclaim 30% of the medical charge of the original drugs sold during this delay period from the pharmaceutical company and provide to the Korean national health insurance finance program.

3. Japanese government, raises the plaintiff winning rate in patent infringement actions.

The Japanese government has established plans to strengthen the protection of patentees, such as the provision of a system to facilitate the proof of infringement in patent infringement actions and increase the factors which may be included in the calculation of damages. Although the plans are intent upon protecting Japans own patent enterprises, they are also expected to protect foreign small businesses that enter Japan. The Japanese government made

an official announcement about such contents last month and clarified strengthening the protection of intellectual properties. As for the plaintiff success rate in patent infringement actions, Japan is 23%, Germany 63%, the Netherlands 41%, and France 39%.

4. China building a wall with patents … on-site Korean corporations in panic

Under the deluge of the tremendous amount of Chinese patent applications and registration, it is difficult to correctly apprehend who controls which patents in China. The ‘Patent Troll’ China, based on the overwhelming quantity of patents, is beginning to appear as a significant threat.

Of the key Chinese patent risks, the present threat is definitely in the field of utility models (product shape and structure). China has been running an ‘Intellectual Property Rights’ (Patent) system to facilitate the application and registration of utility model rights, with only quite a basic examination process. The application of Chinese utility models totals 0.87 million cases (vs. Korea’s ten thousand cases).