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					       March, 2008

       Baek, Jae-hong,
       Deputy Director
Technical Cooperation Division


                   1
                      Contents



IP system, Technological Innovation and Economic
Growth
KIPO’s experience: KIPOnet

Benefits of KIPOnet

Global KIPO




                         2
IP System, Technological Innovation and Economic Growth




                           3
 IP system, Technological Innovation and Economic
Growth



  Intellectual property (IP) as the key to economic development in
  the 21st century’s information era.
                                                                                 (price per 1g)

   Intangible IP assets are supplanting physical
                                                              Gold                   $31
   resources as the engine of wealth creation and
                                                              Interferon anti-cancer
   economic progress.                                         Medicine
                                                                             $ 5,000
                                                              Anemia medicine in EPO
                                                                           $670,000


   Knowledge-based industry drives new markets
   and adds value.

                                                    43.1
                                                           42.8
                                                                  40.7    39.8        39.5




                                                    USA Germany UK France Korea

                                        4
 IP system, Technological Innovation and Economic
Growth



  IP automation infrastructure facilitating the promotion and
  utilization of intellectual property.




   Competitive IP holds the key to economic development in a knowledge-based
   society.


   Promotion of intellectual property has become a major task for developed
   countries.


   Efforts are directed toward building effective IP automation system in most
   countries.

                                         5
KIPO’s experience: KIPOnet




            6
 KIPO’s experience: KIPOnet
                                                             Brief Introduction of KIPOnet




 A fully integrated IPR automation system
  Electronic handling of applications for all kinds of IPR
  Full automation of internal administration
  Work-at home system




 A unified portal for public service

  all customer-services on 24 hours/7 days
  Notifications by push mail or Short Message Service (SMS)




                                           7
 KIPO’s experience: KIPOnet
                                                      Main Services of KIPOnet




 Assists applicants to file their applications online to acquire an
 exclusive right of their inventions or trademarks

 Supports KIPO examiners to judge on the patentability of applications

 Issues a variety of certificates to applicants

 Publicizes IP information for public disclosure and review

 Helps KIPO trial examiners to make a decision on IP litigations

 Disseminates Korean IP and examination information domestically and
 internationally



                                     8
 KIPO’s experience: KIPOnet
                                                      The Development History KIPOnet




  1995: Established IP Automation plan in 1995, Three-years of development

  1999: KIPOnet launched World’s first Internet-based e-filing system for patent
        application released

  2001: Internet Gazette publishing began

  2003 ~ 2004: KIPOnet upgraded to provide faster, more reliable and more
               convenient service

  2005: World’s first PCT e-filing service launched


  2006: 24 hours and 365 days non-stop service began work-at home service
        examiners started

                                          9
 KIPO’s experience: KIPOnet
                                                                Key Features of KIPOnet :
                                      1. Computerization of all administrative procedures



 Foundation of paperless environment for all IPR administration

  Existing paper-based documents and application (only 7% of total applications)
  are digitalized by KIPO Digitalization Center.

  All the converted electronic files are managed as original.




                                                          Digitalization Center




                                          10
 KIPO’s experience: KIPOnet
                                                                 Key Features of KIPOnet :
                                       1. Computerization of all administrative procedures



 A complete electronic management of internal IP affairs

  Examiners do all their major tasks such as application retrieval, prior art searches,
  and notice preparation at a single window.

  All reports are approved electronically.

  Daily PDF gazettes of granted and laid open applications are published online.

  Changes of ownership of IP rights are available up-to-date.




                                             11
 KIPO’s experience: KIPOnet
                                                                             Key Features of KIPOnet :
                                                   1. Computerization of all administrative procedures



 Work-at-home service

  Examiners can do a remote online examination while staying at their home.

  For security and access to KIPOnet, Government Virtual Private Network (GVPN)
  and fingerprint identification were introduced.

                                                                                        Search
                                                                                        System
            Examiners           Internet

                                                                                        Administration

                                                 Government               Firewall
                                                Administration                          Digital
                                                  Network                               Signature
                         GVPN



                                                                                        KIPO
                                           ※ Government Network Center
                        MOGAHA               GVPN: Government Virtual Private Network



                                                         12
 KIPO’s experience: KIPOnet
                                                              Key Features of KIPOnet :
                                    1. Computerization of all administrative procedures



 Knowledge-based Management

  KIPO’s Knowledge Management
  System (KMS) is a portal system
  allowing the sharing, utilization and
  evaluation of various knowledge inside
  and outside the office.



  KIPO messenger enables KIPO staffs to               Existing communication media                        KIPO Messenger


  do a real time file exchange,
  communication, and also give real-time              In person           e-mail


  notices to applicants.                                                             Real-time


                                                     telephone           Meeting
                                                                                                    Real-time file exchange
                                                                                                    Real-time communication
                                                                                                    Real-time notice
                                                Circular, notification   Liaison




                                           13
 KIPO’s experience: KIPOnet
                                                                 Key Features of KIPOnet :
                                         2. A ubiquitous single window for public services



 24 * 7 public service

  All kinds of IP applications can be filed online to KIPO.

  Customers view and retrieve a variety of notifications online.

  Legal status of applications is notified by push mail and mobile messages.

  Requests and issuances of various certificates are available online.




                                          14
 KIPO’s experience: KIPOnet
                                                                  Key Features of KIPOnet :
                                          2. A ubiquitous single window for public services



  IP information archive portal

   Domestic and foreign IP information is freely
   available online for the public by KIPRIS.
  - It covers all the Korean IP information of
    KIPO and major patent authorities such
    as EP, JP, US, and so on.
                                                          Free of change public IP search service
                                                                    in Korea since 2000




   Customized IP information is delivered daily
   by push mail.
  - Push mail service sorted by IPC code,
    design classification, trademark
    classification, applicant, patent attorney
    etc.

                                           15
 KIPO’s experience: KIPOnet
                                                                Key Features of KIPOnet :
                                        2. A ubiquitous single window for public services



 Transparent online disclosure of all the procedures and results of civil
 petitions
  Applicants are informed of the progress of applications through My KIPOnet service

  My KIPOnet provides legal status information to law firms, enterprises or
  individuals who can access the web.

  It also supports viewing and
  downloading of applications and
  examination information grouped
  by applicant or case, including
  information of renewal of patent
  rights and due dates.




                                         16
 KIPO’s experience : KIPOnet
                                                                Key Features of KIPOnet :
                                3. A Network for sharing and disseminating IP Information



  High-quality services for other government organizations

   A variety of IP administrative or legal information are made available to
   governmental organizations such as the Ministry of Government Administration
   and Home Affairs (MoGAHA), the Ministry of Finance and economy (MoFE), and
   the Courts.

  - Offers examination and trial information to the Courts
  - Allows the general public to view the register of granted patents by linking to
    the administrative information sharing system of the MoGAHA
  - Enables applicants to pay their fees to an account of the MoFE.




                                          17
 KIPO’s experience: KIPOnet
                                                               Key Features of KIPOnet :
                               3. A Network for sharing and disseminating IP Information



 High-quality services for R&D institutes and private companies

  Customized patent information including patent maps
  and patent litigation maps is available for private
  companies and R&D institutes free of change.




  To encourage mutual use between patent statistics and industrial statistics, KIPO
  publishes a patent statistics analysis report.




                                         18
Benefits of KIPOnet




        19
 Benefits of KIPOnet
                                           Greater efficiency in IPR administration in KIPO




  Significant reduction of examination pending period


   The average examination pending period in 1999 was 23.6 months. By 2005 it
   had reduced to 17.6 months and in 2007 it further reduced to 9.8 months.

  - This brings a result that applicants can
    be given the results of their applications
    and decide to whether or not to
    commercialize their inventions quicker
    than before in this rapidly changing
    information technology era.




                                           20
 Benefits of KIPOnet
                                         Greater efficiency in IPR administration in KIPO




  Significant improvements in the quality of its examinations


   The examination error rate for patent applications dropped from 6% in 2001 to
   1.5% in 2006.

                               <Examination Error Rate>

             Type             2001    2002       2003     2004     2005      2006
    Patent & Utility models   6.0      4.3        3.8      3.6      2.3       1.5
    Trademarks & Designs      3.5      1.7        1.8      1.9      2.0       1.4




                                         21
 Benefits of KIPOnet
                                                       Greater efficiency in IPR administration in KIPO




  Internal business cost savings due to KIPOnet

    KIPOnet brought about cost savings of over 367 million US dollars from 1999 to
    2006, by reducing gazette publication costs, saving space for preserving paper
    documents, and reducing examination pending period.

               <Internal Business Cost Savings due to Enhancement of KIPO Productivity>
                                                                                                  (Unit : US$ 1000)
   Area of Assessment        1999     2000     2001         2002     2003     2004     2005     2006      Total
 Internal   Administration   21,160   18,631   24,521       25,381   26,770   30,854   39,264   51,672   238,253
 Busines
  s Cost     Examination     11,495   10,656   9,728        13,947   16,942   19,294   21,387   25,712   129,161
 Savings
                Total        32,655   29,287   34,249       39,328   43,712   50,148   60,651   77,384   367,414




                                                       22
 Benefits of KIPOnet
                                                                                  Improvement of Public Service




  Dramatic cut-down in paperwork
   Online filing reached 92% by the end of 2007.
   Online searches surged about twenty-fold from 900 thousand in 2001 to over 16
   million in 2007.
  - This shows that inventive activities of the general public have been continuously
    increasing.
                                            <Annual Online Searches>
                        18,000,000
                    S   16,000,000
                    e
                        14,000,000
                    a
                    r   12,000,000
                    c   10,000,000
                    h
                         8,000,000
                    H    6,000,000
                    i
                         4,000,000
                    t
                    s    2,000,000
                                 0
                                     2001     2002   2003    2004   2005   2006    2007
                                                                                          Year


                                                        23
  Benefits of KIPOnet
                                                                             Improvement of Public Service




    Customers opportunity cost savings due to KIPOnet

      On the customer’s side, opportunity cost savings thanks to e-filing and
      computerized IP search amounted to more than 3,355 million dollars from 1999
      to 2006.

              <Customers Opportunity Cost Savings due to Improvement of Public Services>
                                                                                                       (Unit : US$ 1000)
  Area of Assessment      1999      2000      2001      2002      2003      2004      2005      2006          Total
                          1,809     2,424     2,866     4,182     4,635     5,364     6,099     6,924        34,303
              E-filing
 Customer
Opportunity Computerize   60,399   165,127   330,092   401,748   464,988   536,113   621,412   741,255     3,321,134
   Cost      d Search
  Savings
                          62,208   167,551   332,958   405,930   469,623   541,477   627,511   748,179     3,355,437
               Total




                                                       24
 Benefits of KIPOnet
                                                           Improvement of Public Service




  Enhanced transparency of IP administration in KIPO

   With all IPR examination procedures available online, the public has better
   access to information and can learn about specific cases.
   KIPOnet has also brought about a renewed faith in the Korean intellectual
   property system, raising KIPO’s ranking amongst the world’s top PCT
   (international patent) application receivers from 13th in 1999 to 5th by 2006.
                                   <Ranking of KIPO>

        Year      1999    2000    2001     2002    2003    2004     2005    2006
      Ranking      13      10       9          9       7     7       6        5




                                          25
 Benefits of KIPOnet
                                         Rising the Efficiency of National R&D Activities




  Prevention of duplicated R&D investment
   Utilization of patent information in R&D is preventing redundant investments

   This has not only reduced R&D expenses, but also shortened the R&D period.
  - R&D institute could reduce R&D time by
    26.18 percent and an R&D cost by 27.59
    percent with the use of customized patent
    services offered by KIPOnet.




                                         26
Global KIPO




    27
 Global KIPO
                                             Best practice recognized worldwide




  Since the launch of the KIPOnet in 1999, approximately 30
  Intellectual Property Offices (IPOs) benchmarked the KIPOnet to
  modernize their own IP examination and administration system.

  KIPO has provided nine developing countries with technical
  consultations on office automation and enhanced cooperation in
  the IT field with other IPOs and international organizations such as
  WIPO and APEC.




                                   28
 Global KIPO                                                               PCT-ROAD




  In cooperation with WIPO, KIPO developed the PCT-Receiving
  Office Administration system, called PCT-ROAD in 2005.

   As of 2007, this system has been deployed in 18 countries around the world,
   including Israel, Egypt, Indonesia, the Philippines and Malaysia.
   PCT-ROAD has contributed to increasing the e-filing rate of international patent
   applications and decreasing the digital divide between developing PCT member
   states.




                                         29
 Global KIPO        PCT-ROAD




                30
 Global KIPO
                                                                        K-PION Service




  Due to the increasing importance of Korean patent information,
  the Korean Patent Information Online Network, so called K-PION
  was launched in 2005.
   It provides examiners in other countries with a means of searching English
   translations of Korean patent documents including file wrapper information.
   Examiners of 35 foreign IPOs can
   view and retrieve Korean-English
   translations of Korean IP information
   and examination history.




                                           31
           Thank You


Jong-Hyub Choi: jonghyub@kipo.go.kr



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