1. KIPO improves regulations by allowing automatic applicant address changes

According to the KIPO, since the introduction of the applicant address automatic change system last June, 17 regulation improvement tasks have been completed. If an applicant applies for a change of address when the address is changed due to the move of residence, it is automatically updated in linkage with the system of the Ministry of Security and Public Administration. The patent registration certificate reissue online service is also available, so it can be reissued free of charge by online application.

In addition, the burden for using a state-owned patent was lightened by allowing license fee paid for the quantity used after the expiry of the contract period

2. 3,000 material parts-specializing companies to be promoted

The Ministry of Trade, Industry and Energy plans to push for early commercialization of ten core materials such as smart surface treated steel plate and ultralight material for transport equipment by investing two trillion won until 2016 in a joint civilian and government effort. It also suggested a target that it would expand the number of small-and-medium businesses specializing in material parts from 2,770 last year to 6,000 by 2020. A material parts-specializing company refers to a company whose ratio of sales of material parts is 50% or more. It is also planned to increase the number of core businesses, whose sales of material parts is 200 billion won or more and exports is 100 billion won or more, from 981 to 2,800.

3. New technologies developed through complicated requirements are often frustrated by complicated procedures of patent registration

Patent registration is possible just by the description of the invention in an advanced country, but many items including the name, field and background art have to be described in this country for registration. The current patent application system is fastidious in form and limited in amendment opportunity after filing an application, so small-and-medium venture businesses of this country are having difficulties in timely securing of patent rights.

The KIPO has submitted a patent law amendment proposal to the National Assembly to push for a “creative idea protection reinforcing scheme for the improvement of the intellectual property system” whereby creative ideas and new technologies can be protected. As representative cases, from now on, smart phone apps, mobile games and computer program inventions in an online distributed form will be objects to be examined for patent regardless of the form thereof. This means apps also will be examined as an idea or technology for a patent right.

A 17 year old boy called Nick from the U. K. developed “Summly”, an app using an idea for summary presentation of news and filed it for an international patent application. This year Yahoo bought it at about 40 billion won, so through this process Nick hit the jackpot.

4. The Hague System to take effect next July … what are the advantages

As the design international application system (Hague System) is enforced also in this country from next July, the government amended the design protection law last May by reflecting the essentials of the system and is now amending the subordinate laws including the enforcement ordinance. With the operation of this system, a design right can be protected in many countries just by filing one application with the KIPO or WIPO. As approvals were required from respective countries conventionally, time, cost and labor are saved with the introduction of this system. Whereas the number of world patent applications increased by 47% in 2001-2011 and that of trademark rights increased by 76%, the number of design applications showed a growth by as much as 158%.

5. Loans will be available with a trademark right as collateral

Loans will be possible with a trademark as collateral. A trademark right is an intangible asset, rather than a property or real estate that is traditionally viewed as an asset that can be used as collateral.

The Industrial Development Bank became the first bank to launch loan products with a patent as collateral, and opened the way for a trademark right, which is another axis of IP, to be securitized, so that from next year on, it will be a new window for small-and-medium and mid-sized firms to raise funds.

An IP collateral loan is a financial product involving a system in which a professional appraisal organization calculates a collateral amount by assessing the value of the commercialized IP so as to provide the loan. Last October, five firms had 6.7 billion won loaned with patents as collateral, and 14 firms will have a total of 15.6 billion won loaned by the end of this year.