Source: KIPO
Date: April 6, 2006
Individual applications decreased / Substantial increase in corporation applications
KIPO (Commissioner JUN, Sang Woo) announced that the number of Business Method (BM) patent applications has decreased from 9,895 in 2000 to 4,686 in 2005.
The number of individual applications in Korea has drastically decreased from 5,214 in 2000 to 1,370 in 2005, one-forth of the total. However, the ratio of corporate applications compared to individual applications has continuously increased. (85% in 2000, 207% in 2005)
This trend suggests that ‘bubbles’ of individual applications have been removed since 2000, and that the core of BM patent applications is moving to corporations that are actively filing specific BM patents.
BM patents are closely related to internet businesses that require a relatively quick lifecycle from concept to reality. In this new economic space called internet, it is essential to secure early rights in order to facilitate a new business launch, market penetration, company promotion, and funding.
To secure early rights, companies were actively using the expedited examination. In 2004, the ratio for applying for expedited examination was 9.5% among all applications. In other words, one out of ten applications applied for expedited examination.
The number of registrations increased every year as well, and, with the increase the number of disputes grew, showing a 44% increase compared to 2004.
It is a natural consequence that the practice of securing rights by companies may increase the number of disputes. Nevertheless, KIPO is seeking various measures to prevent potentially unreliable rights.
In 2005, KIPO reorganized the examination standards of computer-related inventions. With strict judgment on the patent condition and assessment process, KIPO is making an effort to increase the quality of examinations. KIPO is also working on PR efforts, such as participating in the opening of a presentation on financial BM patents.