기술창조와특허_Sty_#07_Role and Implication of IP in the Economic Development in Korea

8/13/2019 _Sty_#07_Role and Implication of IP in the Economic Development in Korea

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Special Lecture for KIPA

Role and Implication of IP in

the Economic Development in Korea

Wednesday, June 9, 2010Yonsei Univ.

Chaho JUNGProf., School of Law

SungKyunKwan University


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Introduction

The fields where it seems that Korea can NOT even be close

to the U.S.A. within coming 50 years

Music & Movie

Hollywood v. Chungmuro

Pharmacy

Pfizer v. Dong-A

Airplane

Boeing v. Korea Aerospace Indus.

Education

Harvard v. Seoul Natl Univ.

Legal Infrastructure

Westlaw v. Law&B

American football

No Korean professional team


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History of Patent Law

the very first written patent law in Italy in 1474Success of industry based, at least in part, on the patent system


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Statute of Monopolies in England in 1623Driving force for the Industry Revolution


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Italy England U.S.A.There are no undisputable evidence which shows that the patentsystem was a direct cause of economic development

somebody: There is a direct correlation between innovation, IPprotection & economic performance

Three above countries operated strong patent systems andeventually achieved unprecedented economic developments

Three above countries were all advanced countries

The patent system is effective only in advanced countries?


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Experiences of Korea

In 1970s in Korea, no copyright to foreign authors, esp.musicians to protect local music industry

Results?

In 1970s in Korea, a quota system to protect local movieindustry under which a movie maker could import 1 foreignmovie after making 5 local movies

Results?

In 1980s in Korea, a quota system to protect local electronicindustry, one of which was SAMSUNG, under whichsubstantially limited amount of importations of Japaneseproducts, many of which were SONY products

Results?


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Section 1 of the Korea Patent ActTo promote the (countrys) industry

So proper patent system shall be designed considering currentlocal industry

History of the Korean Patent Act

History of stronger patent rights which are somewhat ahead of

the economic situationsSinged the Korea-US FTA

Singed the Korea-EU FTA

Planning the Korea-China FTA


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To stay or to proceed?

Genuine Item with IntellectualProperty, such as Technology,Trademark and Design

$2,000

Counterfeiting Item withoutIP

$20


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Increasing Value of Knowledge

Value of Knowledge

Gold/g = U$17

Anti-cancer Interferon/g = U$5,000

EPO/g = U$670,000

Erythropoietin (EPO): A hormone produced by the kidney that promotes

the formation of red blood cells in the bone marrow.

Portion of Intangible Property in a Companys Whole Market Value

38%(82) 68%(92) 85%(98) Brookings Institute (S&P 500Companies)

66% to 75% 3 Corporate Accountability 144-48

Produced Value Per Worker, Per Year in the USA from 2000 to 2004

$181,000 in IP-intensive companies

$106,000 in non-IP intensive companies

Robert Shapiro & Nam Pham, Economic Effects of Intellectual Property-Intensive Manufacturing



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To stay or to proceed?


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Active patent filings


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Active patent filings


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IP Activities of Korean SMEs

IP management is more important to SMEs than to bigcompanies

Korean SMEs have been more active in IP activities, such as R&Dexpenditures, patent filings

50% more patent filings per the same revenue

Government assistance for Korean SMEs

Free Patent Management Services for Small and Medium-SizedEnterprises

Small and Medium-Sized Enterprises' IPR Acquisition Campaign

Fee Reductions for Small and Medium-sized Enterprises

Free Education on Patent Information Systems to PatentApplicants

Ongoing Programs of Assistance for Facilitating Technology

Transfer


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Future of Korea

Strong belief for a stronger patent system

Strong patent system is essential for economic development

Special situation between two giant countries

The IP Basic Act in 2010

A long way to go

Bank ofKorea

2000 2001 2002 2003 2004 2005 2006

Growth

Rate

00 to 06

2012?

Royalty

Income 688 924 835 1311 1861 1908 2011 292% 5872

Royalty

Expenditu

re

3221 3053 3002 3570 4446 4561 4487 139% 6237

Deficit 2533 2129 2167 2259 2585 2653 2476 98% 365

Unit: million US$


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Future of Korea

Future of Korea depends on how much IP will be created inKorea

Inventions are created by inventors

Incentive to inventors is essential for the patent system

Employee invention shall be compensated by the Invention PromotionAct

How much compensations?

A meal or a drink?

A makeup or a golf club?

A car or an apartment?

Bigger compensation, stronger incentive

A graduate who majored a science or technology must be treated inaccordance with his/her achievement

Many smart students going to medical schools, law schools, etc.

Smart students must research and create valuable inventions, forwhich attorneys are being hired


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Future of Korea

Some 25 years ago, it was understood that Korea can NOT

even be close to the U.S.A. in coming 50 years in thefollowing fields:

Semiconductor

Automobile

Nuclear Power Plant

Baseball


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Thank you for yourattention!

Chaho JUNG

Prof., School of Law

SungKyunKwan University

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기술창조와특허_Sty_#07_Role and Implication of IP in the Economic Development in Korea