South Korea’s patent performance is weak compared to its economic size and technological level, and this is due to a variety of reasons, including a weak patent protection system, low win rates, and fake patent applications. To improve this situation, a strong patent protection system and improved awareness of intellectual property rights are needed.
A long time ago, there was a protracted war between Samsung and Apple, the two giants of the smartphone industry. The weapon they use to defeat their opponents is patents. This war was not just a competition between companies, but a fight for technological supremacy in the global market, which attracted the attention of the world. The two companies have filed lawsuits based on hundreds of patents, and it has gone beyond a simple trademark dispute to highlight the importance of technological innovation and protection. The importance of patents, in particular, was highlighted by the fact that they are the engine of technological progress.
The rapidly advancing science and technology has created an environment where a large number of patents can be created, and in this environment, huge patent disputes have begun to occur frequently. As the world has become a global village, companies have to compete on a global stage, and patents can be a powerful weapon in this fierce competition. It’s not just about protecting technology, it’s about survival and growth. Therefore, companies need to have a large number of high-quality patents to survive in the global market. These patents are not only an asset for a company, but also a proof of its technological prowess, which is closely linked to the economic strength of a country.
In the modern era, patents are not only the key to corporate competitiveness, but also an important asset at the national level. Especially now that technology has emerged as a major factor in national competitiveness, the quality and quantity of patents is an important shield for a country’s economic security. However, South Korea’s patent activity is far from normal for an economy of its size. The technology trade balance, while improving, is still in the red. This doesn’t simply mean economic losses, but rather that South Korea’s technological prowess is not properly valued in the global market.
As a young country with a modern state system and a late industrializer, South Korea may not yet be a technology leader. However, for a country with one of the world’s top 10 economies and a globally competitive electronics industry, it is hard not to feel that Korea’s current patent performance is lacking. This reflects a problem with the patent policy and system at the national level, which needs to be fundamentally improved.
There are various reasons for this phenomenon. One of them may be the lack of creative and enterprising talent to lead the country’s industries. Creativity and innovation are the key drivers of technological advancement, and the education and environment that fosters them is paramount. To this end, various policies have been proposed to foster creativity by rejecting the traditional instructional approach. But hasn’t Korea been producing outstanding talent? The reason for Korea’s lack of technological capabilities is not a lack of talent. Rather, it’s the lack of a good technology environment, such as a strong patent system, that allows talented people to showcase their abilities.
While Korea’s technological environment has come a long way, the patent system, one of the most important elements of the environment and the foundation of modern technological development, still has a long way to go. In other words, the fundamental cause of the lack of technological competitiveness is not a lack of talent, but a lack of patent protection and a misunderstanding of intellectual property rights in the country as a whole. This is not just a problem for companies and individuals, but an urgent national challenge.
Low win rates and small awards
A patent is a system that grants exclusive rights to the patentee in exchange for the disclosure of technology in order to encourage invention and develop national industries. In other words, the primary function of a patent is to protect the rights of the patentee and to promote industrial development by disclosing the technology. It is an important tool for promoting technological innovation and, in turn, economic growth. Once a patent is registered, all technology is public, except for defense-related parts, so there is no problem with this function. However, the rights of patent holders are not well protected.
The winning rate for patents in Korea is very low at around 30%, with 70% of patents being invalidated by litigation, and half of those who win receive compensation of 50 million won or less. This is a very small number compared to foreign cases and highlights a serious problem with the Korean patent system. A prime example is the Samsung and Apple patent trial verdict mentioned above. A patent trial was held between the two companies in South Korea, and the court awarded Apple 40 million won to Samsung and 25 million won to Apple. On the other hand, a recent verdict in the United States awarded Samsung $119 million to Apple and Apple $158,000 to Samsung.
The total amount of compensation in South Korea was 65 million won, while in the U.S. it was $191.58 million, which is about KRW 112.79 billion. Even considering the difference in the size of the cell phone market between the two countries, the amount of compensation awarded is very large. This is an indicator of how poorly South Korea’s patent protection is, which undermines its international competitiveness.
It is difficult for large companies with trillions of won in operating profits to justify paying tens of millions of won for patent infringement. For small and medium-sized enterprises (SMEs), it is unfair to have their hard-earned technology stolen and used by other companies, and the compensation is so small that they often do not even register patents at all. This discourages SMEs from innovating, which in turn weakens the technological competitiveness of the country as a whole. Thus, the original intent of the patent system has been castrated and is becoming increasingly irrelevant.
Lack of patent system expertise
In general, determining whether a patent claim is patentable requires a basic understanding of technology and specialized knowledge of the law. Therefore, highly specialized experts in the field are required. However, Korea still has a weak foundation, and the most competent experts are affiliated with large companies. There are also limitations to the existing experts. While there are intellectual property law experts called patent attorneys, they are not authorized to represent lawsuits. Lawyers who are authorized to represent litigants can qualify as patent attorneys without any technical training. These deficiencies make patent protection less effective.
For a more complete patent system, specialized personnel with full authority and knowledge of the patent system are needed, and a foundation should be laid to make patents accessible to many companies. To this end, it is important for the government and the private sector to work together to strengthen patent-related education and research, and to train specialized personnel. This will not only strengthen patent protection, but also contribute to improving the quality of the country’s technological capabilities.
Lack of awareness of IPR protection
Although there has been a significant disconnect between the public’s sentiment and the court’s rulings in recent years, the law is only as good as the public’s consciousness. As mentioned earlier, one of the reasons why the court has been so lenient on patents is the widespread misconception of intellectual property rights, including patent rights, in the country. This is a deeply ingrained problem in Korean society, and it is not just a matter of protecting patent rights, but also a matter of social responsibility and ethics.
Examples of intellectual property infringement are very easy to find around us. For example, the most common cases of IPR infringement that the average person is familiar with involve copyright. It’s not uncommon to see people downloading paid works for free, such as movies, music, or TV shows. Because copyright infringement is so socially acceptable, people often don’t realize how serious it is.
Many people also illegally install and use computer software that is protected by copyright rather than patents. These illegal activities are not only committed for personal gain, but also hinder the technological development of society as a whole. South Korea has modeled its industrial development after that of other countries, and as a result, its economy has developed at a pace that is unparalleled in the world. However, there are side effects of this, and one of them is a culture of copying. This culture is an important factor that stifles creativity and innovation and must be addressed for the long-term development of the country.
Copying other people’s work or patents has only recently been recognized as a big problem, and while it’s much better than it used to be, some producers still don’t fully realize the seriousness of the act, or if they do, they do it intentionally for profit. It’s more than just an ethical issue for individuals, it’s a major problem that affects the entire economy of a country.
Fake patent applications for performance
Another side effect of rapid growth is a performance-driven mindset, which has become a barrier to patent revitalization in South Korea. Because patents are becoming increasingly important, companies are eager to file patent applications, and researchers are abusing fake patents for performance. Many companies apply for patents that have no nutritional value for the sake of performance, which is not only a waste of corporate capacity but also a waste of state administration. This overuse of fake patents hinders the search for and protection of truly useful patents and undermines the credibility of the patent system.
The problem is particularly acute in South Korea. The volume of patent applications is one of the largest in the world. However, the qualitative value is very low, as many patents are never exercised or are invalidated after litigation. This reflects a structural problem with the Korean patent system that cannot be solved by simply improving the patent system. More fundamental changes are needed.
This probably contributes to the low win rate and high invalidation rate. Low win rates discourage the filing of quality patents, and the vicious cycle continues. To break the cycle, we need to strengthen the qualitative assessment of patent applications and create institutional mechanisms to reduce fake patents. We also need to improve the performance-driven mindset of companies and research institutes and shift policies to focus on improving the quality of patents.
Inadequate patent protection is the problem, not a lack of talent
To improve these issues, we need to increase penalties and compensation for patent infringement. It’s important for patent holders to believe that their technology can be protected by filing a patent application. We also need legal professionals who specialize in intellectual property and have a good understanding of technology. To do this, we need to increase education and awareness of intellectual property rights and improve the legal framework for patent protection.
It is also necessary to emphasize to the public the seriousness of intellectual property and patent infringement. This is a side effect of rapid economic growth, which will hopefully improve with education. At the national level, these issues need to be addressed by raising awareness of intellectual property protection and enforcing strong penalties for patent infringement.
The problems with South Korea’s patent system are not limited to its home market. It is unreasonable to expect a company or individual entrepreneur to utilize patents properly in a foreign market if they cannot do so in their home market. Each country’s patent laws are slightly different, and the penalties for patent infringement are on a different level, making patent rights a very powerful weapon unlike in Korea.
If companies enter the global market with the Korean patent environment in mind, they will be in a very dangerous situation. Patents are not just a way to protect a company’s interests, but an important asset that proves a country’s technological prowess. Therefore, Korea needs to address the issues related to its patent system and build a stronger patent protection system.
Under the current patent environment in Korea, even if talented individuals emerge, it will be very difficult for them to create quality patents. Even if we do our best to avoid the temptation to copy for the sake of copying, there are obstacles that individuals cannot overcome. These obstacles are more than just a problem for companies, they are a major factor that hinders national technological development.
Right now, there could be a great technology somewhere in Korea that is hiding from the obstacles of the patent environment. The sooner we can improve the patent environment and the perception of patents, the sooner Korea will be able to knock on the doors of technologically advanced countries. This is more than just an economic benefit, it is a crucial task that will determine the future of the country. Improving the patent system is an essential process for Korea to become a global technology powerhouse, and it is time for the government, businesses, and the people to think about and solve it together.
