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2008. 12. 50th
+ Changing Paradigm in Patent Management

Centering around building Patent Pool Base appropriate for domestic environment


 


According to a statistics, Korean companies own 115 patents among 394 patents related to a terrestrial DMB system, which accounts for 29.2% of the TDMB related patents.   The royalty of the patents, however, only accounts for 8.4% since Europe standard has been adopted as the domestic TDMB transmission system.


 


In developed countries, various patent pools have been built centering around next generation technology and widely used in the countries, the example being MPEGLA and VIA Licensing in the US, 3G3P and cooperative administration by individual companies, United License for Digital Age of Japan, and VCD standard of China. Although there have been efforts to build patent pools like DBM Patent Pool by domestic manufacturers and RFID Patent Pool by ETRI and Korean RFID/USN, the efforts have not been accomplished.


 


Patent pool is a system which is administrated by license agencies making it possible that the right holder can make royalty management easily and the licensee can use the patent technology at low cost  The patent pool is useful for both patent right holders and licensees and can contribute to industrial development through extended use of technology. 


 


The KIPO has proposed a patent pool system providing general guideline for patent pool royalty calculation and distribution adapted to Korean environment.  According to the guideline, at the initial stage of patent pool, MPEGLA method with no royalty difference per patent is adopted and the royalty is distributed according to the use of the patent.  In order to let foreign companies to participate in the patent pool, agreement forms have been illustrated considering foreign laws and systems.


 


This proposal is expected to become a first step for better use of patent pools through improved understanding of patent pool, securing dedicated personnel and general standard of royalty calculation. The KIPO plans to provide companies with related information through research and analysis of patent pool and related system laying the ground for extensive use of patent pool in Korea.