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Patent Activity of South Korea under the Conditions of Creative Economy Development
The article discusses the problems of the Korean patent within the creative economy and highlighted the criteria for development of this sector in South Korea.
Keywords: international business, international relations, South Korea, the creative economy, patents.
In recent years, intellectual property rights have taken a leading role in the economic and scientific agenda, as evidenced by the annual increase in the number of patent applications worldwide.
According to statistics from the World Intellectual Property Organization (WIPO), in 2012 the number of patent applications increased by 9.2 % to 2.35 million. There has been that patent activity continues to be concentrated only in the 5 patent offices (SIPO - China, JPO - Japan, EPO - European Patent Office, USPTO - United States and KIPO - RK), which collected more than 77 % of filings and 74 % of all patents obtained [1, p. 22].
At the same time, South Korea is one of the leading positions in the patent field. According to the report "World Intellectual Property Indicators for 2013", published by WIPO, South Korea ranked 4th in the world in the number of patent applications in 2012 (after China, Japan, USA), by submitting 188,915 applications. From ROK applications large proportion were patent applications in the field of electrical components and to it - 27 138 (14.4%), Computer Technology - 19 812 (10.5 %), electro - ICT - 16 315 (8.6 %).
Protection of intellectual property is one of the main priorities of the South Korean government in the process of building a creative economy based on new technologies and innovations. Aware of the need for the country's development on an innovative way, the new RK President Park Geun-hye has proposed the concept of "creative economy," the central role which will be played by science, innovation and information technologies. In June 2013 the government published a plan for the development of the creative economy in which there are three main objectives, six strategies, which contain 24 tasks.
In particular, much attention is paid to the patent field. Under this plan, the government should draft a patent strategy to protect the creative ideas that have a high market value, and create a mediation system that organically connect patent and scientific and technological developments. February 25, 2014 Park Geun-hye unveiled a three-year plan of economic reforms. He would increase the country's economic growth to 4% per year, achieving the level of employment to 70 % of the economically active population, while the average annual income per capita -. Up to 40 thousand dollars Gross domestic expenditure on research and development as a percentage of GDP from 2000 to 2012. increased steadily, as can be seen from the following figures: in 2000 - 2.3 %; 2002 - 2.4%; 2004 - 2.68 %; 2006 – 3 %; 2008 - 3.57 %; 2012 - 3.74 %.
It is planned for 2017 to increase research costs up to 5 % of GDP. It is planned that the achievement of such high rates will be due to the development of science and technology. By 2015, according to the plan in order to support the development of innovations will be created creative economic innovation centers across the country and "Technology Bank", which will contain information on technologies owned by large companies, but not realized in life.
However, it is not necessary to relax at the apparent positive situation in the scientific field of the South Koreans. The speed of innovation is increasing, and competition from other countries tightened. One of the main competitors of Kazakhstan is China. Despite the fact that research costs in China account for 1.77 % of GDP, while in Kazakhstan - 3.74 % (2012), the average value of the increase in costs for 15 years was 7.8 % in China, while in the Republic of Kazakhstan only 3.3 % [2, p. 10]. Investment growth in this sector from 1995 to 2010 also increased by an average of 24 %, which is 3 times more than in Kazakhstan. China has overtaken the world and the activity in patenting activity: According to that same report, "World Intellectual Property Indicators for 2013" states that for the first time China has entered the 1st place and Resources (proposals submitted by China), and destination (an application, served in China) in respect of all four types of intellectual property (patents, utility models, trademarks and industrial designs). Of the top five patent offices around the world, the State Intellectual Property Office of the People's Republic of China (SIPO) was the only agency which registered double-digit growth in each of the four types of intellectual property.
The situation is aggravated by the complex of problems in the production of new knowledge. The Republic of Korea joined late in the process of industrialization and borrowed ready-made instead of technology development. Despite the fact that the overall intensity of scientific research (R & D expenditures relative to GDP) of the Republic of Kazakhstan included in the group of leaders on a par with Sweden, Finland, and even ahead of Japan in the technology trade balance of the country has one of the lowest among OECD members. In other words,
the system does not work for the organization of new studies and the Borrowing and improving foreign developments. With regard to the legal framework of intellectual property protection in the Republic of Kazakhstan, it includes the following basic laws: Patent Law, Utility Model Law, Trademark Law, the Law on industrial design, the Law on the Prevention of Unfair Competition, the Law on the Protection of trade secrets law the development of semiconductor integrated circuits.
It is noted that the first intellectual property laws were passed in 1908, the basis of which the laws of Japan were taken. In 1946, a new law on patents, which served as the basis for US law. The next milestone was the creation in 1977 of the Korean Office for the Protection of Industrial Property now renamed the Korean Intellectual Property Office (KIPO)], which was formed from the Patent Office, in force since 1949 under the guidance of the Ministry of Trade and Industry of the Republic of Kazakhstan 14. currently, KIPO - this is the main body responsible for the protection of intellectual property rights in the Republic of Kazakhstan, development and support of the applicants, etc. Today, there is a multi-level patenting system in the world to you lyddite approximately as follows.
In that case, if the applicant is required to obtain a patent for intellectual property in any country of the world, the most profitable option would be filing a single application in a separate national patent office. In the case of South Korea, a patent application must be submitted in the Korean Intellectual Property Office.
Patenting the PCT Treaty
An international agreement, which was concluded in 1970, received the name of the PCT (Patent Cooperation Treaty) - Patent Cooperation Treaty. On the basis of the signed contract, which includes at present 146 countries, it is possible to simplify the application process for patenting inventions and utility models. According to the PCT, served one international application with the Patent Office of the country, which is among the countries united by the agreement. Patent applications filed under the Patent Cooperation Treaty. The number of international patent applications filed in 2013 under the PCT, the first time exceeded 200 thousand., Showing an increase of 5.1% compared to the 2012 total number of applications published in 2013, it amounted to 205.3 thousand, and almost half of them (49.2 %) fell in the United States and Japan. These two countries, like the year before, leading the list of countries where it has been published most applications. United States tops the list with 57.3 thus., Japan is second with 43.9 thousand., China in 2013 could rise to third place. The top ten also include South Korea (5th), France, UK, Switzerland, Netherlands, Sweden.
In recent years, Asian countries began to dominate the patent market. Besides Japan, which has caught up with the US patent activity level and even surpassed them significantly increased patents for invention patent offices in South Korea and China. It is noteworthy that the three Asian countries in the top ten - Japan, China and South Korea - in 2013 accounted for 38 % of all applications filed under the PCT.
In comparison, their share was 25 % in 2007. Areas in which last year's most active issued patents under the PCT, was electronic equipment - 14.9 thousand, or 7.8 % of the total; computer technologies (14.7 thousand, 7.7 %.); digital communications (14.1 thousand., 7.3 %) and medical technology (11.9 thousand., 6.2 %). The largest decline is observed in the microstructure and Nano technologies (minus 8%), Organic Chemistry (minus 3.3 %), pharmaceuticals (minus 1.3 %).
Preparation of the European patent
For intellectual property protection in the territory of 32 European countries allows the European patent that may issue based on the European Patent Convention in 1977 Such an application can be submitted in French, German or English directly to the European Patent Office. In this case, the examination procedure will be carried out in one agency will be issued one regional patent for all countries, in the case of payment of the relevant duties.
Eurasian application is filed through the Patent Office of the State, which is part of the Eurasian Patent Organization, which was founded in 1995 and brought together 9 countries, or directly to the Eurasian Patent Office, which is located in Moscow. Already in the 1990s, Kazakhstan has been active in patenting activity, but the number of companies applying for patents, marginally from 1982 to 1999 on the 5 major companies accounted for 67.8 % of applications submitted; with regard to the institutions, they also did not show activity in this area, except for institutions ETRI (Electronics and Telecommunications Research Institute) and KIST (Korea Institute of Science and Technology) 19. Already in the 2000s, dramatically increasing the patent activity of South Korean applicants for abroad, the industrial sector RK leader in this field,
1. LG Electronics
2. Samsung Electronics
3. LG chem.
4. LG Innotec.
5.Issledovatelsky Institute of the Republic of Kazakhstan in electronics and telecommunications.
7. Seoul National University.
8. Institute of KAIST (Advanced Institute of Science and Technology).
9. Cheil industries inc.
10. Research Institute of the Republic of Kazakhstan on the biosciences and biotechnologies.
South Korean applicants also successfully obtained patents in the US. In 2012, Samsung has won the 2nd place in the ranking of the 50 companies that received the highest number of patents (No. 5081) in the United States, in this rating were also company SK Hynix Inc KR (43rd place), Electronics and Telecommunications Research Institute (47th place), LG Display Co Ltd (50 th place). Competition in innovation is growing, while innovation should be characterized by originality, market demand and economic efficiency. Today, the competition winner is the one who is not only faster and better produce new knowledge and technology, but also in the shortest possible time can bring them to a particular product, offering it on the market. Protection of intellectual property (and the patent system as a part of it) - a key point of innovation, allowing companies to profit from the innovations that South Korea has successfully mastered. However, despite the generally positive attitude of the international patent system and patent activity in the Republic of Kazakhstan there are some problems in this area.
1. Accusations of borrowing foreign technology.
Rapid and successful innovative development of Kazakhstan became possible thanks to the active borrowing foreign technology and competent patent policy. Analysis of the economic policies of South Korea in 1960-1970's shows that the scientific and technical potential of the Republic of Korea was formed on the basis of foreign borrowing of scientific and technical knowledge in the small role of its own scientific and technological potential. If you compare the cost of borrowing technology with a volume of its own R & D expenditures (ie. E. The level of technological dependence on other countries, which is calculated as the ratio of costs on borrowed technology to their own R & D expenditures), in 1977-1981. RK technological level depending was 28 %. For comparison: in 1987 the level of US technological dependence, Japan and France was 1.1 %, 6.1 % and 6 2 %, respectively. In the 1980s, growing import of technologies, which from 1982 to 1986 amounted to 1 184 900 million dollars., Which exceeded the previous record of 10 in 12 years’ time.
It's no secret that in the beginning of the development of scientific and technological development Republic of Korea was on the way up and the borrowing of foreign technology. And thanks in part to successful activities in the field of patenting, protection and implementation of these technologies in the local production of currently profits from these developments it receives South Korea, rather than country-developer. A striking example of this situation is the Russian development and use of Russian experts in the Republic of Kazakhstan. It is noted that in the 1990s, when Russian science was experiencing serious difficulties related to the lack of necessary funding, the South Korean representatives were interested in learning Russian developments, and without large financial investments. In particular, it is believed, that his success in the early 1990s, Samsung was it owes much to Russian experts, including in the field of digital video recording technology to the disks and computer graphics. Another example of the use of Russian technology in Samsung - the technology of Inventive Problem Solving (TRIZ), the use of which to kontsa1990's allowed Samsung to expand the patent portfolio of more than 100 items.
The following example is related to developments in the field of aviation. In January 2014 The Moscow Arbitration Court completed the hearing of the international claim to two South Korean airlines. They used the program for Flight simulators belonging to the organization "Penza Design Bureau Modeling" (BSPC) [3, p. 14]. The lawyer asked the Russian company to recover from the south side of $ 49.6 million. The court satisfied these requirements and required foreign firms to stop using the program, belonging to Penza developers. The essence of the trial is that even in the 1990s, programmers BSPC gratuitously wrote to South Korean corporation Daewoo Heavy Industries program to airplane simulator, asking instead to coordinate its further use. then Corporation Intrapore and Korea Aerospace Industries - Flight simulators began to deliver this program in the armed forces of Indonesia and South Korea. In this case, the approximate number of contracts for the supply of equipment amounted to about $ 50 million.
2. Increase in the number of patent wars and the negative effects from them.
Research and development and innovation are a major advantage in the competition between the major corporations and the main task is to protect the rights of their possession from the competition. In this regard, the world is experiencing a real surge in patent wars, including the involvement of South Korean companies. In the first half of 2013, the number of court cases on intellectual patents between South Korean companies and foreign companies was 210, which is 130.8 % more than in the same period of the previous year. According to KIPO data, about 78 % of the total volume of international patent litigation in the first half of 2013 occurred in two industries: IT and electronics.
Companies are enormous costs associated with the patent wars that could be used more effectively. One of the high-profile trials is an ongoing dispute between Samsung and Apple for patent infringement on the technology used in smartphones and tablet computers. The patent war between companies in just two years have caused more than 150 trials. August 24, 2013 the jury found that Samsung infringed six Apple patents as a result of the payment in the amount of $ 1 billion. was approximately twice the amount the company would pay Samsung, if Apple agreed to a proposal on the licensing of patents, made in the autumn of 2010. [4, p. 210]
In parallel, the company is Samsung patent war not only with foreign companies, in particular with the company Ericsson, but also with his South Korean counterpart - from LG. The company LG Display has accused Samsung Electronics and Samsung Display of violating the rules for the use of patents in the production of new LCDs with organic light emitting diodes (OLED). Samsung Display has already said it is preparing a counter-suit against LG. In the struggle for the development of all means, including by means of bribing employees of a competitor. A prime example is the fact that in the first half of 2012. 11 former Samsung Mobile employees have been arrested and accused of trying to convey the company's production technology LG Display 55-inch LCD TVs with organic light-emitting diodes.
Patent wars among the largest manufacturing companies are only part of the iceberg of problems in this area. Scourge and parasitic entities patenting activity called "patent troll" - a company specializing in buying and registering patents for the purpose of subsequent judicial or non-judicial (the claim) prosecution of persons illegally using patented these firms of intellectual property for the sole purpose of obtaining compensation. Only in the last two decades, the damage caused by "patent trolls" has made more than $ 500 billion.
At the same time, South Korea, seeking to protect their development, also become like "patent trolls", created at the state level company Intellectual Discovery. Recently, the company has acquired more than 200 US patents and, according to officials, it is planning to use them to protect other South Korean companies against patent lawsuits from competitors.
3. The high cost of patents.
High cost and patents consist of three parts: 1) the cost of filing, 2) the cost of examination and correspondence with experts, 3) the value of the patent. According to some reports, patent, valid throughout the world, may be worth more than 100 thousand. USD., And it is not the limit. Valuable patents go from500 thousand. Dollars. And if we add to this amount, the cost of litigation costs, you get a substantial amount, for example, in US patent attorneys association estimated that the completion of judicial proceedings in respect of patents costs for each side in the amount of about $ 2.5 Mill.
4. Timing of the patent. Terms of consideration of applications for patents are different and can last anywhere from 1 year to 7 years. For example: in China, the Ukraine, Israel 1 year; in Kazakhstan - more than 1 year (Table 2.), in the US - 2-3 years, the EU - 4-5 years, in Japan - up to 7 years. China, Ukraine and Israel may grant a patent for 1 year, if the applicant already has a patent of the Russian Federation and the PCT application, since these countries, experts quite trust the PCT. Japanese experts, in contrast, have a habit of not trust anyone and meticulously suited to applications, so the term of consideration of the application in Japan can reach 7 years. According to KIPO, terms of consideration of applications in the Republic of Kazakhstan is one of the fastest in the world and make up slightly
more than a year. It is noted that due to the increased number of patent applications, patent office’s cannot cope with so many, which significantly affects the timing of the application. Given the fact that the application process may be delayed, the applicant incurs significant losses due to delays in obtaining the patent.
5. Weakness support small and medium enterprises in the patent field. If large companies still have a chance to defend themselves against patent claims, then from the intricacies in relation to patents suffer smaller companies and start-ups, because they do not have enough cash to protect you identify is not protected there any new technology is one of the patents, it is not easy because, for example, only in mobile communications such patents amount exceeds 250 thousand.
- Comparison of Scientific and Technological Competitive Edge Between Korea and China // HRI Economic Review. March 2013. P. 10.
- Gupta N., Healey D. Institute for defense analyses «Innovation policies of South Korea». August 2013. USA. P. 22.
- WIPO. The economics of intellectual property in the Republic of Korea. P. 14.
- National industrial competitiveness policy (the experience of the West in favor of Russia). M.: IMEMO RAS, 2002. P. 210.