On Intellectual Property Protection Enforcement in Korea Intellectual Property Protection Policy by Central Administrative Agency in 2019

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Registered Publication Number 12-B552783-0000040-10

ANNUAL 2019 REPORT on Intellectual Property Protection Enforcement in Korea Intellectual Property Protection Policy by Central Administrative Agency in 2019

Korean Intellectual Property Office

Division Policy Details Remark

Operate a special judicial police for industrial property (*expanded in 2019) request to block/shutdown Enforcement actions against online and websites associated with online distribution of counterfeit goods; provide support on crackdown of offline Chapter 3 offline counterfeit goods and provide goods by local governments and provide corrective recommendations Section 2 corrective recommendations. 1. Executing agency Korea Protection Agency

Operate a reporting center for false marking of intellectual property rights and a joint private-public Enforcement Enforcement actions against false Chapter 3 marking of industrial property rights and consultative body with Internet portal companies Section 2 provide corrective recommendations Executing agency Korea Intellectual Property Protection Agency 1.

Investigation of unfair competition Operate a reporting center for unfair competition activities Chapter 3 behavior and corrective Executing agency Section 2 recommendations Korea Intellectual Property Protection Agency 3.

Operation of the Intellectual Property Conduct mediation on industrial property rights disputes Chapter 3 Section 3 Rights Dispute Resolution Committee Executing agency Korea Intellectual Property Protection Agency 2.

Dispute Operation of the public patent attorney Proivde counseling services to disadvantaged on industrial property rights related matters Chapter 3 Section 3 settlement counseling center Executing agency Korea Intellectual Property Protection Agency 3.

Operation of a trade secret protection Provide legal advice related to the protection of trade secrets for SMEs Chapter 3 Section 3 center Executing agency Korea Intellectual Property Protection Agency 3.

Educate youths, college students, small business owners, corporate and small/mid size company CEOs Chapter 3 Education to raise awareness of about industrial property rights industrial property rights Section 4 Executing agency Korea Intellectual Property Protection Agency 1.

Spreading Utilize national tour campaigns, essay contests on IP failure cases, and social media to promote industrial Promotion of industrial property rights Chapter 3 a culture of property rights protection Section 4 respect protection Executing agency Korea Intellectual Property Protection Agency 1.

Education and promotion of trade secret Provide online/offline educational courses, information sessions, and seminars Chapter 3 Section 4 protection Executing agency Korea Intellectual Property Protection Agency and trade secret protection center 3.

[Ministry] Cooperation to crack down on Cooperate with the National Police Agency, Korea Communications Standards Commission, and local Chapter 3 industrial property rights infringement governments to protect against online/offline counterfeit goods Section 5 1.

[Ministry] Cooperation in handling Joint announcement by the Ministry of Industry and Ministry of Justice regarding the “Measures to Chapter 3 technical cases Eliminate Industrial Technology Leakage”(*New in 2019) Section 5 Domestic and 1. international cooperation [Private Public] Operation of the Council Cooperate with governments, related organizations, and private companies to crackdown on counterfeit Chapter 3 on the Prevention of Counterfeit Goods goods Section 5 1. [International] Participation in Chapter 3 international conferences such as WIPO, Take measures in response to multilateral trade negotiations on IP rights and trend analysis Section 5 APEC 2.

Provide support for costs associated with preparing overseas application/legal opinion and consulting Operation of the Overseas Intellectual (*Expanded in 2019) Property Center (IP-DESK) - Executing agency KOTRA

Support for initial response to overseas Provide legal advice on intellectual property disputes in areas where IP-DESK service is unvailable - intellectual property disputes Executing agency KOTRA

Provide early warning system against trademark squaating by brokers in China and Vietnam; conduct Establishment of K-brand protection online monitoringof Chinese open markets (*Expanded in 2019) base - Overseas Executing agency Korea Intellectual Property Protection Agency protection activities Support for consultation on prevention Provide support for related consulting expenses and overseas intellectual property protection voucher and response to overseas intellectual Executing agency - property disputes Korea Intellectual Property Protection Agency

Support for a joint response to overseas Provide support for a joint response to overseas corporate disputes - intellectual property disputes Executing agency Korea Intellectual Property Protection Agency

Provide support for consulting expenses such as for strategies in protecting overseas intellectual property Consultation on intellectual property for the content industry protection for overseas expansion - Executing agency Korea Intellectual Property Protection Agency Ministry of Culture, Sports and Tourism

Division Policy Details Remark

Crackdown on online and offline illegal Operate a copyright special judicial police, provide support for scientific investigation, home monitoring, Chapter 3 copies and corrective recommendations, enforcement activities such as the operation of silver inspectors, disposal of online and offline illegal copies Section 2 etc. Executing agency Korea Copyright Protection Agency 2.

Conduct self-inspection and field inspection of the public institution on software, guidance on using genuine Chapter 3 Inspection on the use of genuine software for SMEs software Section 2 Executing agency Korea Copyright Protection Agency 2. Enforcement Establishment of a regular system to Operate a comprehensive situation room to respond to copyright infringement Chapter 3 Executing agency Section 2 respond to copyright infringement Korea Copyright Protection Agency 2.

Operation of the Copyright OK Provide certification for the online/offline legal content seller Chapter 3 Executing agency Section 2 designation system Korea Copyright Protection Agency 2.

Operation of the Copyright Dispute Provide mediation on copyright disputes Chapter 3 Executing agency Section 3 Mediation Department Korea Copyright Commission 2.

Operation of the Content Dispute Provide mediation on disputes related to content trading Chapter 3 Executing agency Section 3 Mediation Committee Operation Korea Creative Content Agency 2. Dispute settlement Operation of a copyright consultation Prevent copyright disputes Chapter 3 Executing agency Section 3 center Korea Copyright Commission 3.

Receive complaints on damages suffered due to unfair trade and provide counseling; provide legal consulting Operation of the Content Fair services; investigate real conditions of fair environment; prepare fair trade guidelines, distribute and make Chapter 3 available standard contracts for the public Section 3 Cooperation Center 3. Executing agency Korea Creative Content Agency

Provide online/offline classes and training, including training on the suspension of indictment under the Education to raise awareness of condition of education and training on softweare protection, for youths and adults* Chapter 3 Executing agency Section 4 copyright Korea Copyright Commission, Korea Copyright Protection Agency 2. Spreading (*Performing the marked policy) a culture of respect Operate regular online/offline campaigns*, promotional content production such as webtoons, supporters, journalists, social media, and YouTube Chapter 3 Promotion of copyright protection Executing agency Section 4 Korea Copyright Commission, Korea Copyright Protection Agency 2. (*Performing the marked policy)

[Ministry] Chapter 3 Establishment of copyright Provide inter-agency support to the Public Prosecutors’ Office, Korea Copyright Protection Agency, and Korea Section 5 control cooperation system Communications Standards Commission 1.

Domestic and [Private] Provide procedures for notification of infringement in response to a request for protection of rights holders, Chapter 3 international Copyright protection operation of a working-level working cooperative group of right holders, etc., the establishment of an overseas Section 5 cooperation cooperation intellectual property protection committee (*new in 2019) 1.

[International] Chapter 3 Overseas copyright Conduct discussions regarding joint cooperation plans on major issues in the copyright field through copyright Section 5 protection forums and workshops 2.

Provide legal consulting services on overseas copyright infringement-related issues Operation of the Overseas Copyright - Center Executing agency Korea Copyright Commission

Overseas Hold cooperative joint seminars to promote legally authorized distribution; provide support for use of legal Creating an environment for legal contracts; issue copyright certificates; provide support for local copyright registration protection distribution of overseas works - activities Executing agency Korea Copyright Commission

Strengthen protection system such as Remove online posting of illegally reproduced contents from overseas blocking access to overseas copyright Executing agency - infringement sites Korea Copyright Protection Agency

Supreme Prosecutors’ Office

Division Policy Details Remark

Chapter 3 Enforcement Arrest and processing violators of Establish an organization dedicated to inspectingintellectual property rights violations and infringements; Section 2 intellectual property laws conduct joint crackdown by Supreme Prosecutors’ Office and related ministries 1,2,3,4.

National Police Agency

Division Policy Details Remark

Arrest and processing violators of Conduct regular and special crackdowns on violators of intellectual property laws such as the Unfair Chapter 3 Enforcement Section 2 intellectual property laws Competition Prevention Act 1,2,3. Korea Customs Service

Division Policy Details Remark

Restrictions on the import and export of Chapter 3 Enforcement goods infringing on industrial property Identify infringing goods; hold the goods for inspection and clearance at customs; operate the intellectual Section 2 rights property integrated information management system (IPIMS) 1.

Spreading Training on brand identification Provide training for customs enforcement personnel Chapter 3 a culture of Executing agency Section 4 respect (genuine/fake) Trade-related Intellectual Property Rights Protection Association 1.

[Ministry] Joint crackdown on imported Chapter 3 and exported goods infringing on Focus on identifying the right timing for the issues Section 5 intellectual property rights 1.

Domestic and [Private] Establishment of the Chapter 3 international cooperation system to control the import Share intellectual property information with the Trade-related Intellectual Property Rights Protection Association Section 5 cooperation and export of infringing goods 1.

[International] Sharing information on Chapter 3 goods infringing intellectual property, Exchange information on illegal goods with overseas customs, such as with Japan customs, and hold working- Section 5 etc. level meetings on intellectual property rights with Korea, China, and Japan 2.

Overseas protection Support for Korean brand protection Provide training on identification of counterfeits of Korean brands to overseas customs personnel - activities

Fair Trade Commission

Division Policy Details Remark

Chapter 3 Enforcement Ex officio investigation and sanctions on Provide intensive surveillance and sanctions on technology exploitation through the technology exploitation Section 2 technology exploitation surveillance team 3.

Korean Trade Commission

Division Policy Details Remark

Chapter 3 Enforcement Investigation and sanctions on unfair Establish and operatea reporting center for unfair trade practices Section 2 trade practices 1.

Ministry of Environment

Division Policy Details Remark

Spreading Education and public relations for Chapter 3 a culture of implementation of the Biological Provide consulting services and publication and distribution of guidebooks on access, use, and benefit-sharing Section 4 respect Resources Law (ABS) of biological resources 4.

[Ministry] Operation of the National Chapter 3 Institute of Biological Resources Establisha joint ministry ABS legal support group and execute a joint business agreement (*New in 2019) Section 5 Domestic and 1. international cooperation [International] Chapter 3 Cooperation in securing Conduct research on overseas biological resources with partner countries; establisha cooperative system such Section 5 overseas biological resources as joint research and human resource development 4.

Ministry of Agriculture, Food and Rural Affairs

Division Policy Details Remark

Control and disposal of illegal or Crackdown on illegal and bad seed distribution; identify violations Chapter 3 Executing agency Section 2 defective forest seeds Korea Forest Service 4. Enforcement Investigation of Infringement of Plant Use special judicial police to resolve disputes in violation of plant breeder’s rights Chapter 3 Executing agency Section 2 breeders’ rights Korea Seed & Variety Service 4.

Spreading Education and public relations for Provide educational training and promotion for protection of target breeds such as breeders and corporate Chapter 3 a culture of prevention of disputes in violation of bodies of the National Agricultural Cooperative Federation Section 4 respect Plant breeders’ rights Executing agency Korea Seed & Variety Service 4.

Domestic and Strengthen the operating system and increase efficiency through the introduction of the UPOV international Chapter 3 international [International] Cooperation to improve electronic application system and cooperation with related organizations the convenience of overseas applications Section 5 cooperation Executing agency Korea Seed & Variety Service 2. Division Policy Details Remark

Overseas Support for overseas expansion of Open overseas demonstration farm of the local variety; establish and operate a GSP overseas pilot protection Executing agency - activities domestic breeding Korea Seed & Variety Service

Ministry of Oceans and Fisheries

Division Policy Details Remark

Domestic and [Ministry] Conduct research and development of strategic seeds for variety protection in cooperation with the Ministry of Chapter 3 international Promotion of Golden Seed Agriculture, Food and Rural Affairs, the Rural Development Administration, the Ministry of Maritime Affairs and Section 5 cooperation Project (GSP) Fisheries, and the Korea Forest Service 1.

Ministry of Foreign Affairs

Division Policy Details Remark

Domestic and [International] Participation in Chapter 3 international international organizations and regional Host and promote meetings related to attracting regional offices of WIPO, hold a tri-country working-level Section 5 cooperation councils, etc. meetings to discuss intellectual property-related issues with Korea, China, and Japan 2.

[Ministry] Domestic and overseas Establish a joint task force, to deal with companies seeking benefit by being the the Korean Wave bandwagon, cooperation in response to fake Korean with nine ministries including the Korean Intellectual Property Office and Public Prosecutors’ Office (*Expanded - Overseas companies in 2019) protection activities Reinforced support for prevention and response to overseas intellectual Establish an organic cooperation system between headquarters and diplomatic missions abroad, support for - property infringement resolving international disputes

Ministry of SMEs and Startups

Division Policy Details Remark

Investigation of infringement on the Conduct administrative investigations and take administrative measures for SME technology infringement Chapter 3 Enforcement SMEs technology and recommendations activities; establish a technology infringement advisory group and technology infringement investigation team Section 2 for correction (*New in 2019) 3.

Conciliation and Arbitration Committee Provide conciliation and arbitration services for resolution of disputes related to SME technologies Chapter 3 Executing agency Section 3 on Technology Disputes for SMEs SME Technology Protection Center 2.

Dispute Operate integrated consulting and reporting center for technology protection, technology protection service, settlement technology leakage prevention system, technology protection support group, and technology protection legal Chapter 3 Support for technology disputes for support group SMEs Section 3 Executing agency Korea Foundation for Cooperation of Large&Small Business, Rural Affairs, the Korean 3. Association for Industrial Technology Security

Spreading Provide awareness improvement and professional manpower training; publish technology protection Chapter 3 a culture of Education and promotion of technology guidelines; hold conferences protection Section 4 respect Executing agency Korea Foundation for Cooperation of Large&Small Business, Rural Affairs 3.

[Ministry] Cooperation to support Provide joint consulting services with all ministries for technology protection such as the Ministry of Trade, Chapter 3 technology protection for overseas Industry and Energy, the Korean Intellectual Property Office, and the National Police Agency Section 5 Domestic and expansion Executing agency Korea Foundation for Cooperation of Large&Small Business, Rural Affairs 1. international cooperation [Ministry, Private] Chapter 3 Cooperation in Establisha fair coordinating committee and provide responsivemeasures against technology exploitation Section 5 handling technology-related cases (*New in 2019) 1.

Ministry of Trade, Industry and Energy

Division Policy Details Remark

Dispute Provide mediation for disputes related to industrial technology leakage Chapter 3 Industrial Technology Dispute Mediation Section 3 settlement Executing agency Committee Korean Association for Industrial Technology Security 2.

National Intelligence Service

Division Policy Details Remark

Overseas Operation of the National Industrial protection Security Center and monitoring of Block outflow of high-tech overseas, block illegal export of strategic materials, provide support for - activities overseas technology leakage countermeasures against intellectual property rights infringement

Registered Publication Number 12-B552783-0000040-10

ANNUAL 2019 REPORT on Intellectual Property Protection Enforcement in Korea

Publication Remarks

In 2020, the world is experiencing an unprecedented crisis due to COVID-19. As a ripple effect, online education and non-face-to-face activities have seen an exponential increase. At the same time, we are facing a new age with industries realigning on a fundamental level to converge with new technologies such as artificial intelligence.

Amidst such transition, Korea has, for the first time, achieved a rank among the top ten in the 2020 Global Innovation Index, which measures innovative capabilities of each member country, published by the World Intellectual Property Organization. For further achievement, we can look to the way in which Korea handled COVID-19 - “K-Prevention” against COVID-19 was acknowledged as a successful model. Moreover, the Korean boy band affectionately known as BTS whose concert was broadcasted worldwide on online platforms, creating a global fandom for K-Pop. Such achievements by Korea as a whole can be attributed to Korea’s R&D, contents development, and intellectual property protection which are at the center of innovation and creation, even in an unheard-of crisis.

The Presidential Council on Intellectual Property has been publishing an annual report on intellectual property protection policy execution since 2014. This annual report summarizes the government-wide intellectual property protection policies and their practices in executing such policies, as well as trends of IP protection policies in prominent countries abroad. In particular, the 2019 Intellectual Property Policy Execution Annual Report discussed a wider span of policies from domestic and abroad. The Report introduced intellectual property protection activities by the Ministry of Trade, Industry and Energy, and Ministry of Health and Welfare, and also provided further information on IP protection, related issues from WIPO World Intellectual Property Organization.

We hope that this report will serve to emphasize the importance of Korea’s intellectual property and boost Korea to become a foundation of an ecosystem for a virtuous cycle in investment, innovation, and creation. Intellectual property is not physically visible. Notwithstanding, we would like to share that intellectual property is the most important driving force in the Korean New Deal and behind our job growth.

We thank all relevant organizations for cooperation and contribution in publishing our annual report.

Jong Sang-jo, Co-chairperson, Presidential Council on Intellectual Property Contents

Chapter 01. Introduction 01 01

Chapter 02. Intellectual Property 02 Protection Policy 07

Section 1. Intellectual Property Policy and Legal System in Korea 08 1. Second National Intellectual Property Master Plan (2017~2021) 08 2. National Intellectual Property Implementation Plan for 2019 12 3. Intellectual Property Law 14 Section 2. Activities by Central Administrative Agency on Protection of Intellectual Property 15 1. Presidential Council on Intellectual Property 16 2. Korean Intellectual Property Office (KIPO) 17 3. Ministry of Culture, Sports and Tourism 19 4. Supreme Prosecutors’ Office and Korean National Police Agency 21 1) Supreme Prosecutors’ Office 21 2) Korean National Police Agency 21 5. Korea Customs Service 22 6. Ministry of Food and Drug Safety 23 7. Fair Trade Commission 24 8. Korea Trade Commission 24 9. Ministry of Environment 25 10. Ministry of Agriculture, Food and Rural Affairs 26 11. Ministry of Oceans and Fisheries 28 12. Ministry of Health and Welfare 28 13. Ministry of Foreign Affairs 29 14. Ministry of SMEs and Startups 30 15. Ministry of Science and ICT 31 16. Ministry of Trade, Industry and Energy 32 Section 3. Activities of Local Governments for Protection of Intellectual Property 34 1. Seoul Metropolitan City 35 2. Busan Metropolitan City 36 3. Daegu Metropolitan City 37 4. Incheon Metropolitan City 38 5. Gwangju Metropolitan City 39 6. Daejeon Metropolitan City 40 7. Ulsan Metropolitan City 41 8. Gyeonggi-do 42 9. Gangwon-do 43 10. Chungcheongbuk-do 44 11. Chungcheongnam-do 45 12. Jeollabuk-do 45 13. Jeollanam-do 46 14. Gyeongsangbuk-do 47 15. Gyeongsangnam-do 48 16. Jeju Special Self-Governing province 48 17. Sejong Special Self-Governing City 49

Chapter 03. Achivements of Policy 03 Enforcement on IP Protection 51

Section 1. Enactment and Amendment on Acts for Protection of Intellectual Property 52 1. Industrial Property Right 52 1) Amendment to the Patent Act 52 2) Amendment to the Enforcement Decree and Enforcement Regulation of the Patent Act and Enforcement Decree of Utility Model Act 54 3) Amendment to the Design Protection Act and the Enforcement Regulation of the Act 55 4) Amendment to the Trademark Act 56 5) Amendment to the Enforcement Decree of Trademark Act 56 6) Amendment to the Persons Executing the Duties of Judicial Police Officers and the Scope of their Duties Act 57 7) Enactment of the Rules on the Appointment and Operation of the Public Attorney in Patent Trial 57 2. Copyright 58 1) Amendment to the Copyright Act 58 2) Amendment to the Enforcement Decree of the Copyright Act 58 3. Trade Secret and Industrial Technology 59 1) Amendment to the Unfair Competition Prevention and Trade Secret Protection Act 59 2) Amendment to the Prevention and Protection of Industrial Technology Leakage Act 60 3) Amendment to the Investigation of Unfair Trade Activities and Relief for Industrial Damage Act 61 4. New Varieties of Plants 62 1) Amendment to the New Varieties of Plants Protection Act 62 2) Amendment on the Act on Access to and Utilization of Genetic Resources and Benefit-Sharing Act and Enforcement Decree of the Act 63 Section 2. Enforcement of Intellectual Property Infringement Regulations on Illegal Acts 64 1. Industrial Property Right 64 1) Apprehension and Handling of Industrial Property Right Infringement 64 2) Export-Import Restriction on Products Infringing Intellectual Property Right 68 3) Online/Offline Counterfeit Controls 70 A) Operation of Special Judicial Police for Industrial Property 70 B) Investigation and Correction Order of Suspension and Closure on Websites Distributing Online/Offline Counterfeit Products 74 4) Control and Correction on False Marking of Intellectual Property Right 74 5) Inspection and Sanctions on Unfair International Trades 75 2. Copyright 76 1) Processing of Copyright Infringement Cases 76 2) Export/Import Restriction on products Infringing Copyright 78 3) Online/Offline Control and Correction of Copyright Infringement 79 A) Investigation and Support for Scientific Investigation on Copyright Infringement 79 B) Home-Monitoring on Online Illegal Reproduction 84 C) Operation of Silver Surveillance Unit for Offline Illegal Reproduction 85 4) Correction and Disposing of Online/Offline Illegal Reproductions 85 A) Information Request and Correction of Online Illegal Reproductions 85 B) Collection and Disposal of Offline Illegal Reproductions 88 5) Inspection of Genuine Software Use 90 6) Around-the-Clock Response System for Copyright Piracy 91 7) Copyright OK Designation System 92 3. Trade Secret and Industrial Technology 94 1) Treatment on Infringement of Unfair Competition Prevention Act 94 2) Handling of the Prevention of Leakage and Protection of Industrial Technology Act Violations 96 3) Inspection and Restriction of Technology Misappropriation by Authorities 97 4) Inspection and Correction of Unfair Competition 98 5) Operation of Administrative Investigation System for Technology Infringement of SMEs 98 4. New Varieties of Plants and Others 99 1) Handling of the New Varieties Plants Protection Act Violations 99 2) Crackdown and Handling of Illegal or Defective Forest Varieties 100 3) Inspection on Infringement of Varieties Protection Right 101 Section 3. Intellectual Property Dispute Resolution 103 1. Trial and Litigation 103 1) Trial and Litigation on Industrial Property Right 103 A) Trial and Litigations for Cancellation of Trial Decisions 103 B) Claims for Injunction against Infringement (Lawsuits on Merit) 104 C) Injunction against Infringement (Provisional Disposition) 108 D) Claim for Compensation (Lawsuits on Merit) 111 E) Criminal Litigation on Merit 112 2) Copyright Lawsuit 113 A) Injunction against Infringement (Lawsuits on Merit) 113 B) Injunction against Infringement (Provisional Disposition) 114 C) Criminal Litigation on Merit 115 3) Litigation on Trade Secret 115 A) Injunction against Infringement (Lawsuits on Merit) 115 B) Injunction against Infringement (Provisional Disposition) 116 C) Criminal Litigation on Merit 117 2. Alternative Dispute Resolution 118 1) Industrial Property Right Dispute Resolution Committee 119 2) Copyright Dispute Resolution Department 121 3) Content Dispute Resolution Committee 123 4) Industrial Technology Dispute Conciliation Committee 127 5) SMEs Technology Dispute Mediation and Arbitration Committee 128 6) Internet Address Dispute Resolution Committee 131 7) Korean Commercial Arbitration Board 133 8) Seoul Court Mediation Center (Court-Ordered Resolution in Seoul Central District Court) 134 3. Other Activities for Settlement of Disputes 135 1) Public Patent Counseling Center 135 2) Copyright Counseling Center 137 3) Content Fair Cooperation Center 138 4) Trade Secret Protection Center 138 5) Support for SMEs Technology Disputes 139 6) Support of Local Governments for Preventing and Responding to IP Disputes 143 4. Notable Issues from Intellectual Property Cases in 2019 145 1) Industrial Property Right 145 A) A licensee is considered an interested party with the right to file an invalidation proceeding against a patent owner (Supreme Court en banc Decision 2017Hu2819 Decided February 21, 2019) 145 B) Exception to the Territorial Principle with respect to patent infringement (Supreme Court Decision 2019Da222782 Decided October 17, 2019) 146 C) A criteria for incomplete inventions (Supreme Court Decision 2017Hu523 Decided January 17, 2019) 148 D) A criteria for determining the unfair intention of Article 7 (1) 12 of the former Trademark Law (Supreme Court Decision 2017Hu752 Decided August 14, 2019) 149 2) Copyright 152 A) A criteria for determining the ‘comprehensive agency’ included in the trust management of copyright (Supreme Court Decision 2015Do1885 Decided July. 24, 2019) 152 B) A criteria for determining the creativity and practical similarity of mobile game products (Supreme Court Decision 2017Da212095 Decided June 27, 2019) 153 C) Denying responsibility for copyright infringement concerning theft of competitors’ IR data (Supreme Court Decision 2019Do11970 Decided October 31, 2019) 154 3) Trade secret 156 A) Defining the terms “informativeness”and “acquisition”while acknowledging the overseas infringement of trade secrets for the original seed of new crops such as cabbage (Suwon District Court Decision 2018No5924 Decided September. 19, 2019) 156 B) The degree of “reasonable effort”’under the Unfair Competition Prevention Act (revised) is sufficient if the system can be determined to be reasonable in light of the size of the company (Daegu District Court Decision 2019No447 Decided July 23, 2019) 159 C) A criteria for calculating the contribution rate of trade secrets when the starting point of the trade secret protection period and part of the product are related to the infringement of trade secrets (Supreme Court Decision 2017Da34981 Decided September 10, 2019) 163 Section 4. Diffusion of Culture Respecting Intellectual Property 166 1. Industrial Property Right 166 1) Raising Awareness of Industrial Property Rights 168 2) Promotions for Protecting Industrial Property Right 171 A) National Campaigns 171 B) Essay Contest on IP-related Failure Cases 171 C) Production of Public Ads and Use of Social Media 172 2. Copyright 173 1) Education for Awareness-Raising of Copyright 174 A) Offline Copyright Education 174 B) Online Copyright Education 176 C) Strengthening the Foundation of Copyright Awareness and On-the-Job Training 178 D) Educational Courses on Protecting Copyright in Connection with Conditional Suspension of Prosecution 181 2) Promotions for Protection of Copyright 181 A) Online/Offline Periodic Campaigns 181 B) Production of Promotional Contents 182 3. Trade Secret and Industrial Technology 183 1) Educations and Promotion for Protecting Trade Secrets 183 2) Educational Courses and Promotion for Protecting SMEs Technology 184 4. New Varieties of Plants 187 1) Educational Courses and Promotion for Preventing Varieties Protection Right Infringement Dispute 187 2) Educational Courses and Promotion of Enforcement of Genetic Resource Act 187 Section 5. Domestic and International Cooperation Activities for protection of Intellectual property 190 1. Domestic Cooperation System 190 1) Korean Intellectual Property Network (KIPnet) 190 2) Diversified Cooperation among Central Administration Agencies for Monitoring Copyright infringement 191 A) Cooperation for Crackdown on Industrial Property Right and Copyright 191 B) Cooperation for Establishment of International Standard Response System 193 C) Cooperation for Trade Secret Protection and Technology Theft Cases 194 (1) Cooperation for Strengthen and Protection of Trade Secrets for SMEs 194 (2) Cooperation for Lower the Burden of Proof Requirement on Damages in Technology Infringement Cases and Strengthen Punishment for Infringement 195 (3) Quick Response System to SMEs Technology Leakage through Cooperation with Related Ministries 196 D) Cooperation for Protection of New Varieties of Plants 199 (1) Promotion of the Golden Seed Project 199 (2) Cooperation between Organizations Operating the Variety Protection System 200 (3) Establishment of National Species List and Operation of Working-Level Committee 201 (4) Establishment of Interagency ABS Legal Support Group 202 3) Expansion of Public-Private Partnerships for Protection of Intellectual Property 202 2. International Cooperation System 205 1) Industrial Property Right 205 A) Strengthening of International Cooperation to Strengthen Global IP Response Capabilities 205 B) Attracting international IP Organizations and Leading Global IP Initiatives 206 C) Expansion of Support for IP Administration Services in Developing Countries 206 D) Strengthening International Cooperation to Expand Border Measures for Intellectual Property Rights 207 E) Domestic and Foreign Cooperation to Respond to Companies Taking Advantage of the Korean Wave 208 2) Copyright 209 A) Bilateral Cooperation 209 B) Multi-Party Cooperation 210 3) New Varieties of Plants 211 Chapter 04. Future Outlook and 04 Policy Response Direction 217

1. Maintenance of IP Protection System for Non-Face-to-Face Digital Era 218 2. Maintenance of IP System to Lead the Core Technologies of the 4th Industrial Revolution 218 3. Strengthen Fair Economy Infrastructure for IP Protection of Small/Medium/Venture Businesses 219 4. Strengthen Copyright Protection Ecosystem according to Changes in Industrial Environment 219 5. Strengthen IP Protection and Enforcement 220 6. Strengthen IP Protection System for Bio Industries 220 2019 Annual Report Introduction

Chapter 01 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

With a knowledge-based economy expanding rapidly worldwide and an era defined by hyper-connectivity and super-intelligence with digital and network foundation, the importance of intellectual property is increasing as a source of creating added value and a key factor in determining national competitiveness. During the January 2016 Davos World Economic Forum 1) (WEF) , which marked the advent of the 4th Industrial Revolution, the importance of protection of intellectual property (“IP”), that the flow of innovation and creation of wealth, will be with those countries that strongly protect IP.

In light of this, countries around the world are actively implementing policies to strengthen the protection of IP in order to gain a competitive advantage in the global war in the 4th industrial revolution era and to promote their technology security and innovation. In particular, Intellectual Property 5 (“IP5”), which consists of Korea, United States, Japan, China, and Europe, all agree on the need to strengthen the protection of IP in all industrial areas since IP is recognized as a useful tool in overcoming the global economic recession caused by the recent global spread of COVID-19.

For the first time in 2019, the United States implemented the “2018~2022 Strategic Plan,” which contains the strategy of IP for the next five years, to improve the competitiveness of the innovation of the US. Japan established the “Intellectual Property Promotion Plan 2019” in June 2019 and is in position to rapidly respond to changes in domestic and international environments, including informing the public on the cases it has reviewed in relation to artificial intelligence (“AI”) and blockchain technology. China has also announced its “Plan to Advance the National IP Strategy and Accelerate Construction of the Power of IP 2019” and is preparing several legislations to strengthen the protection of IP, including the ability to establish regulations to enforce up to five times the amount of compensation for malicious trademark infringement. The European Union (“EU”) announced its strategic plan 2023 in June 2019 to create the world’s highest quality patents, and at the same time, is strengthening its efforts to eradicate counterfeiting and illegal copying and devising countermeasures against counterfeit goods by conducting an EU-wide analysis on the status and causes of IP crimes.

Amidst this adaptations taking place on a global scale, Korea has established its Second Master Plan for National Intellectual Property (2017~2021) (“Second Master Plan”) with the aim

1) World Economic Forum.

2 제2장 ■ Chapter 01 ■ Introduction 지식재산 현황 ■ Chapter 02 ■ ■ Chapter 03 ■ ■ Chapter 04 ■ 3 , Korea expects 2) Chapter 01 Introduction 01 Chapter With respect to copyright, the government has implemented measures to be more responsive responsive be more to measures has implemented the government copyright, to With respect First, with respect to industrial property rights, the government has not only strengthened With With this roadmap, each central administrative agency and local governments have In 2019, six key directions for creating an intellectual property ecosystem that promotes era-Focusing on the economic ripple effect analysis of the 2nd Master Plans for National Intellectual Property (April 2017). Property Intellectual National Plans for analysis of the 2nd Master ripple effect on the economic era-Focusing Presidential Presidential Council on Intellectual Property, Intellectual property strategy in Korea in response to the 4th industrial revolution

to to copyright infringement cases by cracking down on violations of the copyright law through 2) international international organizations, including World Organization Trade (“WTO”), World Intellectual Property Organization (“WIPO”), and Asia-Pacific Economic Cooperation (“APEC”), to lead the stage. issues in the global IP-related establishment establishment of IP for strategies promising technologies, such as acquistion of strong IPs in healthcare and blockchain technologies, in order to create new technologies and industries. Further, the overseas local response system was strengthened by expanding the functions and expertise of overseas IP centers and expanded the international cooperation for IP with promoted various policies throughout 2019 in order to protect IP. protect to 2019 in order policies throughout various promoted compensation for IP infringement, such as increasing the damages amount up to three times the amount found or assessed in willful infringement cases, but has also supported the for for a copyright ecosystem that corresponds to the digital environment, ⑤ reinforce global IP IP. for of respect a culture spread ⑥ capabilities, based based on the goals set in the Second Master Plan. The key directions are: ① contribute to of IP-based jobs, of creation ② the IP secure 4th strong for revolution preparation industrial and creation of new industries, ③ enhance IP capabilities and establish process order for growth of start-up companies and Small to Medium Enterprises (“SME”s), ④ create a foundation billion, added value of KRW 3,601.7 billion, and employment of 79,076 and employment of 63,389. innovative growth and job creation were established and detailed tasks were implemented of “securing IP competitiveness to lead the 4th industrial revolution.” Through implementation of the Plan that reflects global environment changes, including introduction of new technologies, digitalization of contents, and the effect of the Nagoya Protocol advancement of the IP system and economic ripple effects such as of generation KRW 7,725.1 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

the copyright special judicial police and by collaborating with the Korea Communications Standards Commission to bring about changes in the method of blocking the access and limiting the access time. In addition, the government continues to operate the comprehensive situation room for responding to copyright infringement and provide support centered around the overseas copyright center for overseas expansion to countermeasure against infringement to strengthen the protection of Korean companies’ copyrights abroad.

The protection of corporate trade secrets was further strengthened by broadenly defining the types of trade secret infringement activities and revising the related laws for stronger penalties while easing the requirements for determining trade secrets so that they can be determined as trade secrets even if the information was kept secret despite lack of reasonable efforts to keep such information hidden. The Fair Coordinating Committee was also established for expedient mediation and arbitration of technology infringement cases to allow not only relevant ministries, such as the Ministry of SMEs and Startups (“Ministry of SMEs”), Fair Trade Commission (“FTC”), and Supreme Prosecutors’ Office (“SPO”), but also the private sector, such as large, small and medium-sized enterprises, and the Foundation for Cooperation of Large & SMEs and Agriculture/Fisheries (“Foundation for Large & SMEs”) can cooperate to discuss technology infringement cases. It became possible to quickly and accurately address technology takeover exploitations by the utilizing the expertise of the Korea Intellectual Property Office (“KIPO”) thereby expanding the scope of investigation, covering patents, trade secrets, design infringement, and unfair competition activities as well as illegal reproduction of goods, by the special judicial police under the jurisdiction of the KIPO.

In the sector of new plant varieties, the Genetic Resource Information Management Center (“Genetic Center”) was established and in operation since 2018, and a special judicial police were expanded to crack down on violations of breed protection rights in order to promote and protect the development of new varieties in response to new international norms related to biological and genetic resources such as the Nagoya Protocol.

In addition, the KIPO, the Ministry of Culture, Sports and Tourism (“Ministry of Culture”), the Korea Customs Service, and the SPO have consolidated their protection and enforcement efforts by cracking down on IP infringement. In 2019, the Korean National Police Agency (“National Police Agency”) handled 182 cases on violation of the Patent Law, an increase of about 3.41%

4 제2장 ■ Chapter 01 ■ Introduction 지식재산 현황 ■ Chapter 02 ■ ■ Chapter 03 ■ ■ Chapter 04 ■ 5 Chapter 01 Introduction 01 Chapter In chapter 5, this report discusses basic data for designing IP protection policies in Korea In Chapter 4, the execution of the Korean government’s IP protection policy in 2019 was In Chapter 2, this report examines the status of applications and per registrations each type The Annual Report on the Enforcement of IP Protection Policies 2019 introduces the In 2019, the SPO received 17,886 cases of IP Law violations and handled 17,736 cases. The under the prospect of international IP in the future by looking at the trends of IP protection achievements achievements of regional local governments under the supervision of the Presidential Council on Property (“Presidential Intellectual Council on IP”). It to the intended to contribute derivation of effective policy improvement plans, such as preventing duplication of projects related to IP governments. and local agencies administrative central related between protection and described per rights by activities such as crackdown in violators of the IP laws; trial, litigation, of the IP laws; trial, litigation, in violators such as crackdown activities by and described per rights and alternative dispute settlement; spread of a culture of respect, domestic and international cooperation activities and overseas activities. In each activity, it mentions not only the policies and achievements of the relevant central administrative agencies but also the policies and of IP, and 3, in this chapter report of discusses IP the the system policyKorean promotional and policies in 2019. IP protection new and expanded into categorized enactment and amendment of laws and regulations related to IP protection, of IP throughout 2019. This report is a compilation of the will, efforts, and achievements of enforcement of IP protection policies by the Korean government, and was created to promote and internationally. domestically in Korea enforcement the level of IP protection Ministry of Culture, were a total of 762 cases, also up 13.6% from the previous year. the previous also up 13.6% from of 762 cases, a total were Ministry of Culture, various policies and the results that the Korean government has pursued the protection KRW, and reserved customs clearance on 303 trademark-related infringing products. Through anti-counterfeiting activities of the special judicial police, the KIPO confiscated 6,269,797 counterfeit products, an increase of about 1,155.7% from the previous year. The number of copyright infringement violators, processed by the copyright special judicial police of the from from the previous year, arrested 366, and prosecuted 54 of them. In 2019, National Police 9,847 people. arrested and infringement of copyright cases handled 7,489 Agency Korea Customs Service has processed 273 IP infringing goods, amounting to KRW 6609 billion 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

policies in major foreign countries such as the United States, Japan, China, and European Union. In consideration of the above contents comprehensively, Chapter 6 of this report introduces main directions of the IP-related policies that the Korean government plans to pursue in the future.

6 Intellectual Property Protection Policy

Section 1. Intellectual Property Policy and Legal System in Korea 08 Section 2. Activities by Central Administrative Agency on Protection of Intellectual Property 15

Section 3. Activities of Local Governments for Protection of Intellectual Property 34

Chapter 02 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

This chapter provides an overview of IP policies and laws in Korea and addresses IP protection strategies and policies of related central administrative agencies and local governments that are the main bodies of the establishment and execution of IP protection policies.

Section 1. Intellectual Property Policy and Legal System in Korea

Korea has introduced a five-year National Intellectual Property Master Plan (“Master Plan”) that sets forth a short-to-mid term policy objectives and cardinal directions for a national IP policy, and based on this Master Plan, the National Intellectual Property Implementation Plan (“Implemention Plan”) was introduced that sets forth the action plan for each year. The Implementation Plan is developed by aggregating the implementation plans of the relevant fields collected by the relevant central administrative agencies and local governments. As such, further to introduction of Korea’s overall IP strategies, which are detailed in the Master Plan and Implementation Plan, laws and regulations related to IP rights and relevant ministries in Korea will be discussed below.

1. Second National Intellectual Property Master Plan (2017~2021)

In adherence to the Framework Act on Intellectual Property, enacted in 2011, the Presidential Council on IP was launched to establish national IP strategies and be the control tower for all areas of IP, including review, mediation, inspection, and evaluation of related policies.

The Presidential Council on IP operates by establishin and implementing a five-year plan for national IP. Following the expiration of the First National Intellectual Property Master Plan (2012- 2016) in 2016, the Second National Intellectual Property Master Plan (2017~2021) (“Second Master Plan”) was established and approved in December 2016.

The Second Master Plan sets forth the policy direction and strategic goals under the vision of

8 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 9 IP and trade secrets IP and trade Strengthening the protection of the protection Strengthening Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter Policy Policy Vision Direction Policy Objectives Policy financial, and service industry utilization of intellectual property of intellectual utilization Vision and Policy Goals Vision and Policy to lead the 4th industrial revolution the 4th industrial lead to Securing IP national competitiveness competitiveness Securing IP national Expansion of private sector-centered IP trade, IP trade, sector-centered of private Expansion Establish a virtuous cycle system of creation, protection and and protection of creation, a virtuous cycle system Establish Overseas Expansion of IP Beyond the Domestic Market Domestic the IP Beyond Expansion of Overseas Policy Objectives and Basic Direction of the Second National Intellectual Property Property Intellectual National the Second of Basic Direction and Objectives Policy Master Plan Master

oriented IP creation oriented Respecting IP Values and Realizing Fair Compensation to Right Holders Right to and Realizing Fair Compensation IP Values Respecting From quantity to quality- quantity to From In addition, the direction of the government’s IP finance allocation for 2020 was reviewed In accordance In with accordance the Second Master Plan, the Presidential Council on IP has been and approved in March 2019. The Presidential Council on IPheld disccusions on the following topics - IP issues and improvement directions for bio-industry, composition and plan operation of for bio-industry,IP special plan expert implement committee to policy-making for intellectual Implementation Implementation Plan of 2019 was composed of 12 projects, 23 detailed projects, and 105 sub- 20 and strategies five supplementing by 2018 in established directions key six the on based tasks Plan. Master in the Second suggested tasks implementation * Source: Presidential Council on Intellectual Property, “Second National Intellectual Property Master Plan (2017~2021)”(2016.12.) Master Property Intellectual National “Second Property, Council on Intellectual Presidential * Source: establishing IP implementation plan on an yearly basis, and the National IP Implementation Plan for 2019 was reviewed and approved at the 24th meeting in March 2019. The National IP “securing IP to lead national the competitiveness 4th Industrial Revolution.” of A 4.4 total trillion this plan. realize to the same period during KRW invested will be 2-1-1] [Figure 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

property issues in 2019, and improvement Plan for intellectual property protection system in the 4th industrial revolution era.

[Figure 2-1-2] Strategies and Core Tasks in the 2nd National Intellectual Property Master Plan (2017~2021)

5 Strategies 20 Core Tasks

1 Promote creation of outstanding IP through lintellectual property strategy and R&D

2 Strengthen the use of the standard patent strategy to R&D of new technology Creat high-quality IP and invigorate 3 Strengthen industry-leading IP management of public research institutions commercialization 4 Promote IP and technology trades and commercialization

5 Advance private sector-centered IP finance

6 Strengthen support for SMEs’ participation in IP-related maaters Enhancement of SMEs’ IP 7 Strengthen protection of SMEs’ ideas and technologies competitiveness and 8 Encourage active participation in employee invention policy and establish a protection reasonable compensation system

9 Provide problem-solving support to companies located overseas on IP-related Strengthening support issues for IP activity 10 Strengthen IP international cooperation and enhance global status in the global market 11 Response to new international norms related to biological and genetic resources

12 Improve copyright protection system for digital content

Copyright protection 13 Encourage active use of copyright works using digital platforms and fair use in a digital 14 environment Support entry of Korean Wave contents to global markets 15 Create a content creation ecosystem that meets new technology trends

16 Improve IP protection system in line with emergence of new technologies and industries

Solidifying the 17 Enhance the reliability and stability of patent rights foundation of the IP 18 Support growing activities in IP service industry ecosystem 19 Expand human base IP and improve regional IP capabilities

20 Revitalize development of and strengthen protection of new plant varieties

* Source: Presidential Council on Intellectual Property, “Second National Intellectual Property Master Plan (2017~2021)” (2016.12.)

10 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 11 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter Strengthen response to global standards for new intellectual property such as biological and genetic and genetic such as biological property new for intellectual standards global to response Strengthen awareness resources companies Enhance IP capabilities and establish fair system for growth of start-ups as well as SMEs and venture as well as SMEs and venture of start-ups growth for system fair and establish IP capabilities Enhance Expand IP education to primary and secondary schools and strengthen efforts to raise citizen citizen raise to primary to efforts IP education and secondary schools and strengthen Expand Strengthen capabilities to respond to global IP global to respond to capabilities Strengthen IP for of respect a culture build and spread to a foundation Establish environment in the digital subsist can that ecosystem copyright for a foundation Create Contribute to creating IP-based jobs jobs IP-based creating to Contribute new industries revolution and create the 4th industrial for be ready IP to strong Secure companies Strengthen local response system and expand continuation of international cooperation of international continuation and expand system response local Strengthen Strengthen support for handling of IP-related issues by innovative startups, SMEs, and venture SMEs, and venture startups, issues by innovative handling of IP-related support for Strengthen Six Major Directions by Projects

5 6 3 4 1 2

9. 10. 7. Establish and ensure a fair compensation system for creators for system compensation a fair and ensure 7. Establish industry the content foster to diversification export and expand the system 8. Improve 5. companies of SMEs and venture IP protection for economy fair for a foundation 6. Establish 3. Occupy IP space in core technology early through IP-R&D strategy through technology early in core IP space 3. Occupy technology and new for industries IP infrastructure 4. Establish 1. Foster IP professionals and provide opportunities for startups and employment and startups for opportunities and provide IP professionals 1. Foster and finance IP service IP transaction industry and market-led private-sector 2. Stimulate 12. Strengthen local IP competitiveness local 12. Strengthen 11. 6 Major Directions Major 6 * Source: Presidential Council on Intellectual Property website (www.ipkorea.go.kr) (www.ipkorea.go.kr) website Property Council on Intellectual Presidential * Source: [Figure 2-1-3] [Figure 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

2. National Intellectual Property Implementation Plan for 2019

The National Intellectual Property Implementation Plan for 2019 (“IP Implementation Plan for 2019) has incorporated the six key directions established in 2018, which incorporates current government’s national strategy such as job creation, response to the 4th industrial revolution, innovative growth, and fair economy. The Second Master Plan (2017-2021) formed the basis for the government’s national strategy. The Implementation Plan for 2019 consists of six key directions, 12 tasks, and 23 detailed tasks with a goal of constructing an IP ecosystem that promotes innovative growth and job creation.

The details of the Implementation Plan for 2019 are as follows. First of all, in order to create IP-related jobs, the ministries will: ① reorganize the system and infrastructure for fostering IP professionals so as to lay the foundation, for instance, for stregthening the operation of IP leading universities and professional degree programs led by the KIPO and the Ministry of Culture and revitalization of start-ups and employment will be supported by programs such as setting up a link between education and recruitment; and ② expand the number of IP valuation agencies to 20 (nine private institutions) in the efforts to revitalize IP transactions and finance as well as development of the private-sector led IP service industry, increase IP transactions through the expansion of the trade platform database (DB), and expand IP finance by seeking substantialization through providing quality control standards and periodic inspections.

Next, in regards to securing strong IP in preparation of the 4th industrial revolution and in order to create new industries, the ministries will: ① make efforts to preoccupy the core technology IP arena by supporting government’s research and development (“R&D”) strategy collection efforts in the fields of innovative growth engines such as augmented reality (“AR”), virtual reality (“VR”), customized healthcare, unmanned aerial vehicles, and big data and securing predominance in the technical field where acquisition of the standard patents is viable and ② review overall IP protection system will be reviewed, and restructure the dedicated audit organization for each core sector of the 4th industry by making efforts such as researching the direction for improving the legal system suitable for future copyright environment which would include issues related to AI and blockchain technology and establishing a software patent protection system in a digital environment.

12 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 13 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter Furthermore, Furthermore, in order to be more competitive in the global IP arena, the ministries will: With With a goal of building a copyright ecosystem foundation for the digital environment, the Additionally, Additionally, in order to IP strengthen capabilities and for fair procedure the establish growth response response to international standards of new IP such as biological and genetic resources by new varieties. develop and protect to seeking ways international international cooperation by providing consulting services to countries included in the New Southern Policy; and, ② continue providing taining and publicity on matters complying with developmentto pursue of improvements markers and procedures, system Protocol the Nagoya and inspection system to resolve disputes over variety protection rights, and strengthen the ① revitalize the permanent consultation channel between diplomatic missions abroad and overseas support centers and strengthen the response system by opening a new IP-DESK; and expand efforts in joint examination of patents with major IP countries and strengthen works works by making available, for instance, an DB integrated of copyright information, build a content creation ecosystemby increasing the financial incentives for providing completion diversification export and expansion global for support seek and creation, content on guarantees events. cooperation public-private hosting by ministries ministries will: ① make mandatory the use of standard contracts in government-supported broadcasting projects, provide a fair compensation system for copyright creators by increasing creators’ profits on textbooks, and strengthen copyright protection by expanding the scope of emergency response works; and, ② make an accessible environment for creating and using with relevant organizations to strengthen the efforts on to strengthen enforcement IP with rights organizations relevant infringement and, promote a dispute mediation system by, for increasing instance, support for dispute mediation costs. by streamlining the system for the job by system inventions; streamlining and ② of work ideas the to strengthen protection and technology of SMEs and venture companies by revising the law to lower the burden of proof standard in technology infringement cases and adopt into law the principle of punitive within the KIPO cooperate assessment technical for agency an exclusive and establish damages; of start-ups, of SMEs, start-ups, and the venture companies, ministries will: ① support increase for IP-related activities by innovative start-ups, SMEs, and venture companies by, for instance, increasing innovate to and inspiring inventors startups IP-based promote to companies start-up support for 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Lastly, in order to spread and establish a foundation for a culture of respect for IP, the ministries will: ① put forth efforts to create an IP-friendly environment, including efforts to provide IP courses and educational programs as well as establish a cooperative network between companies; and ② provide support to comprehensive consulting by operating an IP management support group with the aid of the local knowledge center, and promote IP awareness by IP experts providing expertise and knowledge concerning IP-related issue with the disadvantaged and foster development of specialized industries that matches the conditions and characteristics of each region.

3. Intellectual Property Law

The most basic law on IP in Korea is the Framework Act on Intellectual Property, which is a law under the jurisdiction of the Ministry of Science and ICT (Presidential Council on IP).

The laws related to industrial property rights such as the Patent Act, Utility Model Act, Trademark Act, Industrial Design Protection Act, and Unfair Competition Prevention and Trade Secret Protection Act are under the jurisdiction of the KIPO, and the Copyright Act and Cultural Industry Promotion Basic Act are under the jurisdiction of the Ministry of Culture.

The Protection of New Varieties of Plants Act is under the jurisdiction of the Ministry of Agriculture, Food and Rural Affairs (“Ministry of Agriculture”) and the Ministry of Oceans and Fisheries (“Ministry of Oceans”), and the Access and Use of Biological Resources and Profit Sharing, Act the Conservation, Management and Use of Agricultural Life Resources Act, and Act on the Securing, Management, and Use Act, of Marine and Fishery Life Resources are under the jurisdiction of the Ministry of Environment, the Ministry of Agriculture, and the Ministry of Maritime Affairs, respectively. In addition to the aforementioned, various other ministries have legal regulations related to the protection and enforcement of IP.

14 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 15 Meteorological Administration

Korean Intellectual Property Office

Cultural Heritage Administration

Korea Customs Service

Financial Services Commission

Fair Trade Commission

Korea Communications Commission

The Office for Government Policy Coordination

National Intelligence Service

Ministry of SMEs and Startups

Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter Ministry of Oceans and Fisheries

Ministry of Land, Infrastructure, and Transport

Ministry of Environment

Ministry of Health and Welfare

Ministry of Trade and Industry

Ministry of Agriculture, Food and Rural Affairs (Chairperson: Prime Minister·Civilian Expert) (Chairperson: Prime Minister·Civilian Ministry of Culture, Sports and Tourism

Ministry of Public Administration and Security Presidential Council on Intellectual Property Council on Intellectual Presidential Ministry of Justice

Ministry of Unification Activities by Central Administrative Administrative Central by Activities Agency on Protection of of Protection on Agency Property Intellectual Central Administrative Agency Related to Intellectual Property Protection Policy Protection Property Intellectual to Related Agency Administrative Central Ministry of Foreign Affairs

Ministry of Science and ICT

Ministry of Education With With the Presidential Council on IP at the top on the chart, organization the central [Figure 2-2-1] [Figure Ministry of Environment, Ministry of Agriculture are intensively managing various policies on industrial property rights, copyrights, and new plant varieties, and actively cooperating with central each of roles and functions the outlines section This IP. protect to ministries related other in 2019. and their activities and implementing IP policies in establishing agency administrative administrative agencies administrative related to IP protection policies such as the KIPO, Ministry of Culture, Section 2. Section Ministry of Strategy and Finance 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

1. Presidential Council on Intellectual Property

The Presidential Council on IP ① establishes and amends the master plan and implementation plan for the national IP, ② inspects and evaluates the progress of the master plan and implementation plan, ③ allocates and manages efficiently IP-related financial resources, and ④ reviews, coordinates, and inspects key policies related to IP in order to establish a foundation for promoting the creation, protection, and utilization of IP.

The Presidential Council on IP is composed of 13 government members and 18 civilian members with the Prime Minister and a Civilian expert as co-chairs, and the Minister of Science and ICT (“Ministry of Science”) serves as the assistant administrator. The Presidential Council on IP has five specialized committees for each field (creation, protection, utilization, infrastructure of IP, and emerging IP) under its subsidiary, and a special expert committee, a temporary organization for professional review on important issues. There is also a working-level steering committee for preliminary review of committee agendas and reconciliation of disagreements among government ministries, and the Office of IP Strategy and Planning in charge of supporting committee work. In 2019, the Presidential Council on IP held two plenary sessions to deliberate on major policies and plans related to IP.

[Figure 2-2-2] Organization of the Presidential Council on Intellectual Property

Presidential Council on Intellectual Property

Special Expert Committees Co-Chairpersons (Prime Minister and Civilian Expert) (Temporary) Government Civilian Members (13) Members (18)

Expert Committees Working-Level Steering Committee

Infra- Creation Protection Utilization Emerging IP structure

Office of IP Strategy and Planning

IP Policy Bureau IP Promotion Bureau

IP Policy Planning & IP Performance Management & IP Protection Policy Division IP Creation & Utilization Division Coordination Division Infrastructure Division

* Source: Presidential Council on Intellectual Property website (www.ipkorea.go.kr)

16 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 17 , and 3) Items proposed Items Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter Organization and operation plan for IP Special Expert Committee in the bio in the Committee IP Special Expert plan for and operation Organization industry (Proposed) IP Issues 2019 (Proposed) plans for implementation Policy (Proposed) IP policy in China's and system changes for Countermeasures build a virtuous cycle R&D and utilizing IP to creating plans for Innovative ecosystem (Proposed) patent of standard the competitiveness plans for Enforcement policy of IP implementation directions and future inspection Performance (Proposed) Implementation plans for national IP 2019 and direction for allocation finances in finances allocation for IP 2019 and direction national plans for Implementation 2020 (Proposed) the of performance of implementation and evaluation of inspection Results IP 2018 (Proposed) national plan for implementation in the bio industry (Proposed) directions IP Issues and improvement 4 5 1 2 3 4 1 2 3 Item no. Item The 5th Committee Conference and Agendas for 2019 for and Agendas Conference The 5th Committee 25th 24th 2019) Category (April 3, 2019) Furthermore, Furthermore, KIPO promotes administrative informatization of industrial property rights The KIPO is in charge of domestic and international filing, examination, and registration (December 23, (December training training and promotions to raise awareness of industrial property rights and offering training to examiners and judges so as to cultivate experts in the field. KIPO also carries out undertakings Act. Organization Government 5 of the National 3) Article 37, Paragraph industrial property rights. property industrial for the spread of patent technology information to the industry and effective protection and management of industrial property rights and executes various functions such as providing invalidation invalidation proceedings for industrial property rights. In addition, KIPO is responsible for overseeing various functions, including reviewing, enacting, and revising related rules and regulations for the protection of industrial property rights, establishing and implementing various invention promotion policies, and establishing, an international system cooperation for 2. Korean Intellectual Property Office (KIPO) Office Property Intellectual 2. Korean of industrial property rights such as patents, utility models, designs, and trademarks supervises the Intellectual Property Tribunal which is in charge of a trial system such as * Source: Presidential Council on Intellectual Property website (www.ipkorea.go.kr) website Property Council on Intellectual Presidential * Source: [Table 2-2-1] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

that aids in protection of semiconductor integrated circuit arrangements, trade secrets, and trade dresses.

KIPO cooperates with relevant ministries, including the Public Prosecutors’ Office, to crack down on trademark infringement activities such as production and distribution of counterfeit products on and off-line, and conduct administrative investigations and recommendations for corrective actions against unfair competition activities such as product reproductions. In addition, KIPO operates an unfair competition behavior reporting center and IP rights reporting center to investigate and offer correction to unfair competition behaviors, such as seizure of ideas having economic value, and false statements. In 2019, KIPO expanded the scope of duties of the special judicial police, previously limited to trademark infringement, to include patent rights, design rights, and trade secret infringement, and the penalties for IP infringements were toughened through revision of the law such as recognizing punitive damages for intentional infringement of patent rights and trade secrets, and raising the sentence for infringement of trade secrets.

KIPO supervises the Intellectual Property Rights Dispute Resolution Committee so that disputes related to industrial property rights can be quickly and smoothly resolved and provides various sevices to protect industrial property rights of the disadvantaged through its counseling center serviced by public interest patent attorneys. Furthermore, in order to protect corporate trade secrets, KIPO has under its control a trade secret protection center that provides consultation on trade secrets and legal advice for handling disputes.

KIPO supervises an overseas IP center whose objective is to provide protection to the Korean companies abroad on IP-related issues and provide legal advice related to IP disputes in areas where the services of the overseas IP center cannot be reached. In addition, KIPO provides consulting services for prevention and response to international IP disputes for those companies having overseas operation and at the same time, provides information on damages to related companies from the information gathered by a response system established to keep track of the activities by unauthorized preemption of overseas trademark brokers. In 2019, KIPO enhanced functions and expertise by establishing a new overseas IP center and promoting specialized projects that addresses each type of dispute in different countries and expanded its efforts to protect the K-brand to the ASEAN region. In cooperation with the Ministry of Foreign Affairs

18 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 19 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter The Ministry of Culture is in charge of the copyright special judicial police, the online home The Ministry of Culture is in charge of copyright , including establishment and implementation and implementation , including establishment of copyright is in charge The Ministry of Culture In 2019, in order to secure strong IP for the 4th industrial revolution and to create new Furthermore, Furthermore, KIPO is making efforts to strengthen its capabilities to be competitive in global related industries. related 3. Ministry of Culture, Sports and Tourism Culture, of 3. Ministry of a comprehensive plan to strengthen the copyright protection system, support policies to encourage the use of works, and strengthen the foundation for the development of copyright- a “measure to eradicate industrial technology leakage”to prevent the outflow of high-tech technology abroad. industrial technology IP arena by increasing support to come up with a for strategy acquiring standard patents, and put for efforts to cultivate competent workers. Moreover, KIPO made efforts to cultivate local talents in connection with local IP organizations and to strengthen IP-related support to promising local companies by opening a new Sejong Intellectual Property Center. The Ministry of Industry and the Ministry of Justice jointly offered support by announcing industries, industries, KIPO provided support to devise an IP strategy for a field related to promising technologies, including and much healthcare blockchain, contributed to efforts the occupy core as WIPO, and responding in strategically order to lead the global IP initiatives and striving for a stable IP protection abroad by exporting the patent administration information system to overseas countries and allowing our company’s patents to be automatically without registered countries, in overseas examination IP industry by promoting bilateral and multilateral cooperation and create an environment for protecting overseas IP. To this end, KIPO has strengthened cooperation with overseas IP organizations, and formed IP5 national councils to promote examination cooperation and universal system. KIPO is paying attention to major issues of international organizations, such (“MOFA”), (“MOFA”), the Ministry of Industry, and the SPO, KIPO formed a joint task force to respond to companies that copy Korean products and pursued local resolution through country-specific requests. and enforcement efforts fact-finding 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

monitoring group, and offline silver inspectors and is taking measures to expeditiously eliminate and stop distribution of illegal copies by expanding public-private cooperation with online businesses. The Ministry of Culture recommends corrective actions such as removal of illegal copies through information and communication networks and warnings to the distributor of copied works, and carrying out the collection, disposal, and elimination of illegal copies offline. In 2019, through collaboration with the Korea Communications Standards Commission, he Ministry of Culture changed the method of blocking the access, remedied the problem of illegal sites not being blocked when using the security protocol, and shortened the time required for blocking access. the Ministry of Culture also governs the copyright dispute mediation department for smooth resolution of copyright-related disputes and the content dispute mediation committee for quick resolution of disputes related to content transactions, and the Ministry of Culture is making efforts to prevent copyright disputes with the aid of the copyright consultation center.

The Ministry of Culture established the Overseas Intellectual Property Protection Council, a joint consultative body between the ministries, public, and rights groups, laying the groundwork for joint public-private responses to infringements abroad. In particular, the Ministry of Culture continues to supervise the comprehensive situation room , opened in 2018 as a 24/7 copyright infringement response system to quickly respond to copyright infringement. The Ministry of Culture promotes the enactment of the Creating a Fair Distribution Environment of the Cultural Industry Act, and expanding the function of the Content Fair Cooperation Center to support unfair damage reports and legal consulting for content.

Furthermore, the Ministry of Culture has established and operated a comprehensive support system for the legal distribution of overseas copyright works centered on overseas copyright centers and is working to strengthen and expand international cooperation on copyrights. In 2019, the Ministry of Culture introduced a trust fund to the World Intellectual Property Organization (WIPO) to support the development of the copyright field and to raise awareness of copyright protection in the countries under the effects of the Korean Wave and to strengthen capabilities.

Further, the Ministry of Culture is researching the direction of improving the legal system suitable for the future copyright environment and conducting inspections and education to

20 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 21 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter The National Agency Police executes a periodic and special against violations crackdowns of 2) Korean National Police Agency Police National 2) Korean The SPO is working to introduce procedures to strengthen expertise to effectively deal 1) Supreme Prosecutors’ Office Prosecutors’ 1) Supreme The SPO has inspection offices, within its 28 nationwide locations, dedicated to handling IP the Patent the Act, Patent Act, Trademark Copyright Act, Unfair Competition Prevention, and Secret Trade Protection Act for protection of the intellectual property rights. It particular, with respect to measure, measure, held the Fair Cooperation Mediation Committee to swiftly deal with and mediate/ cases. practice and unfair SME technology infringement arbitrate effectively effectively handle technology leak crimes, which are increasing in with importance time, and in 2019, the number of patent investigation advisors were increased to advise on IP infringement cases. In of an May Understanding” Memorandum 2019, executed the Office Public Prosecutors’ (MOU) for creating Fair Economic Ecosystem with the Ministry of SMEs, and as a follow-up trying to find the actual truth and therefore, the Daejeon District Prosecutors’ Office has been and selected is serving Crime 2015 since to supplement as the the for Patent Office Prosecutor’s investigation. The Science and Technology Crime Investigation Department was established and has been 2018 since in at operation the in Office Seoul Prosecutors’ order District to Central to continue with joint enforcement efforts on IP rights infringements. on IP rights efforts with joint enforcement continue to with the increasing number of IP infringement cases. In dealing with highly technical issues associated with patent infringement cases, existing method of investigation has limits in rights-related issues to systematically crackdown on issues crackdown IP rights-related to systematically infringements. In particular, the SPO has with system KIPO, a Ministryestablished cooperative of Culture, and Servicethe Customs Korea by holding campaigns or creating promotional content. promotional or creating campaigns holding by Agency Police National and Korean Office Prosecutors’ 4. Supreme improve the IP protection system for software in digital and network environments. At the in At and for software same environments. digital network system the improve IP protection time, there is an attempt to expand the use of standard for contracts fair compensation to the right holder. It is also implementing education to raise awareness of copyrights such as job protection copyright and subject promoting each for education protection and software training 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

trademark infringement, the National Police Agency focuses its enforcement efforts to stopping manufacturers and distributors of counterfeits and conducts periodic monitoring to track websites engaging in selling of counterfeits. Additionally, with respect to copyright infringement, the the National Police Agency is continuing its enforcement efforts against unauthorized online sharing and copying.

5. Korea Customs Service

The main duty of the Korea Customs Service is to control customs borders to protect IPRs under Article 235 of the Customs Act. The Korea Customs Service urges IP right owners to declare their rights for efficient enforcement of the infringing goods. The information declared to the Korea Customs Service is stored in the computer system for use in customs clearance. The the Korea Customs Service determines whether there is IPR infringement of declared exports/ imports as well as of goods reported as trans-shipments, combined transshipments, imports to bonded areas, shipments on bonded goods, and temporary unloaded goods.

The Korea Customs Service is committed to increasing manpower to continously detect and crackdown on IP infringement products through training customs officials on a regular basis to identify infringing products of IP rights. In addition, the Korea Customs Service is working to strengthen it enforcement efforts on IP rights infringing articles at the distribution stage as well as the customs clearance stage. In particular, the efforts by the Korea Customs Service is leading to increase in the effectiveness of online and offline crackdowns on infringing goods and such efforts include forming private organizations and private consultative groups such as the Trade- related Intellectual Property Protection Association (Private) and establishing a cooperation system that shares information on enforcement among related organizations.

The Korea Customs Service is also strengthening international cooperation to protect IP rights. The Korea Customs Service is building foundation for international cooperation to strengthen the protection of IP rights by actively participating in Korea-China-Japan Customs Commissioner’s Meetings and invitational workshops for World Customs Organization (WCO) Asia-Pacific Intellectual Property Experts and by exchanging information on illegal goods with customs of Japan and other countries. The Korea Customs Service is committed to protecting domestic corporations through continuous promotion of the K-Brand protection project.

22 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 23 Special Measures on Health Crime 「 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter and has established an efficient monitoring system for the distribution the distribution for system an efficient monitoring and has established 4) . 」 The Ministry of Food cooperates with local governments to exchange monitoring information information monitoring exchange to governments with local cooperates The Ministry of Food The The Ministry of Food has set up a drug patent informatics database to provide essential The Ministry of Food and Drug Safety (“Ministry of Food”) is responsible for controlling the Pharmacist Pharmacist Act, that the licensed content and active ingredients are different or significantly insufficient (defective), and counterfeit or altered (forgery) similar to the already approved drugs, etc. Article 3 of the Act Control Unauthorized/defective Unauthorized/defective drugs collectively refer to those that have not obtained permission (unlicensed) according to the

4) business cooperation with Service business the Customs cooperation and Korea cooperation international promoting by participating annually in the Project, Pangaea a project organized by Interpol to crack down on illegal drug distribution with the global pharmaceutical regulatory authorities, customs, and drug sales online sites. overseas of illegal Interpol notifying and by Agency Police the National illegal or defective drugs, or defective illegal of illegal and defective drugs by sharing information and cooperation with judicial institutions such as the Criminal Investigation Office and the National Police Agency. The Ministry of Food is also making efforts to block the inflow of illegal and defective drugs from overseas through the results of the impact assessment of the system, the Ministry of Food is able to produce and policy, industry, and employment. health pharmaceutical on the domestic the impact evaluates and jointly monitor drug manufacturers, importers, and sellers to prevent the distribution of information information for development of generic drugs, such as information relating tolicense and patents, to pharmaceutical companies. The Ministry of Food has introduced a drug license patent linkage system to actively protect the patent rights of new drugs while expanding the use of data on safety and effectiveness of new drugs. With the publication of annual reports on of surveillance coverage. Asof surveillance selling drugs advertisement for coverage. illegal that and online related stores have been identified, the Ministry of Food is taking measures to block online and access delete such advertisements. in response to new market changes such as distribution of drugs via e-commerce market. To this end, the Ministry of Food has designated personnel to conduct online monitoring of illegal distribution of drugs and encouraged monitoring efforts of the Medicine Safety Guard, the for the purpose scope of expanding etc., public consumers, of students, university consisting 6. Ministry of Food and Drug Safety Food and Drug of 6. Ministry distribution of illegal and ineffective medicine/drugs in the domestic and international markets 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

7. Fair Trade Commission

The FTC is responsible for, with respect to IP rights, investigating monopoly/oligopoly and unfair transactions, making IPR related competition polices, amending procedures, etc. Particularly, the FTC has prepared the Monopoly Regulation and Fair Trade Act as its basic guiding principle and an Inspection Guideline on Illegal Exercise of IP right to serve as a specific inspection standard on exericse of IP right so as to provide higher level of consistency and predictability with law enforcement.

In the meantime, the FTC has set up the around-the-clock surveillance system for patent abuses which thwart the growth of innovative companies in the industries dominated by technology standards such as next-generation semiconductors and wireless communication. Futher, the FTC is conducting an officio investigation on interruptions to market entry by unfairly exercising patents in bio/pharmaceuticals industries.

In the field of cultural contents such as online music distribution, the FTC also has established and has in operation a constant monitoring system to monitor collusion activities that hinder SMEs from free market entry or business activities. The FTC has established in 2018 a dedicated task force for technology exploitation cases to prevent unfair technical infringement in subcontracting transactions. In 2019, the FTC introduced a regulation requiring execution of a confidentiality agreement between large and SMEs and use of the technology lease system in the standard subcontracting contract to protect IP rights and technology of SMEs.

8. Korea Trade Commission

From an organizational standpoint, the Korea Trade Commission falls under the Ministry of Trade, Industry, and Energy and is responsible for inspecting unfair trade activities such as infringement of IP rights and follows the Investigation of Unfair International Trade Practices and Remedy against Injury to Industry Act. The Korea Trade Commission is taking the lead in establishing a fair trade practices by taking measures to suspend export, import, sales, and manufacturing activities, exclude and dispose of infringing goods, and order corrections to advertisements as well as impose financial penalty on IP infringers. In 2019, the Korea Trade Commission extended the request period for investigation of unfair trade practices, giving two

24 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 25 and is responsible for inspection- 5) Legal Support Group and signed a joint 6) Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter The Ministry of Environment officially publishes the national species list every year to The National Institute of Biological Resources (“NIBR”), under the Ministry of Environment, sharing’ among the three goals of the Convention on Biological Diversity. on Biological of the Convention goals sharing’ among the three The Nagoya Protocol is an internationally binding legal document that stipulates international norms for achieving ‘fair profit- Access and Benefit Sharing. Access

retained retained technology and with cooperate research. Furthermore, the Ministry of Environment 5) 6) which is tasked to gather on statistics biological resources from each ministry. The Ministry of Environment also manages technologies secured through usability studies based on domestic indigenous organisms and traditional knowledge as patents state-owned and supports related industries by operating the Biological Resource Industry-Academic Association to advance latest trends and issues as well as discuss countermeasures through workshops. through as discuss countermeasures and issues as well trends latest secure the sovereignty of Korea’s biological and genetic resources and supervises the NIBR resources resources to the Secretariat of the Convention on Biological Diversity. In 2019, the Genetic Resources Information Management Center and five related ministries jointly launched the Genetic Resource Access and Benefit Sharing (“ABS”) business agreement. Through this, relevant ministries, including the Ministry of Environment, provide support for ABS-related consulting and counseling to domestic companies, share the national national liaison agencies (MOFA, Ministry of Environment), national responsible agencies (five (six ministries agencies inspection including the Ministryand national of Environment) ministries including the Ministry of Environment). In addition, since 2018, NIBR has operated the Genetic Resources Information Management Center and provides information on domestic genetic related related matters regarding prior approval and implementation of access to, use, and profit- sharing of domestic and international genetic resources. NIBR collects, manages, investigates, and provides information on access, use, and profit-sharing of, for instance, domestic and foreign and genetic resources and provides technical administrative support for the work of the 9. Ministry of Environment Environment of 9. Ministry is a national inspection agency under the Nagoya Protocol years years from the date of unfair trade for practice anyone submit a request in writing to the Korea Commission Trade for investigation into unfair trade practices, and expanded the scope of IP rights. to related trade unfair against protection 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

provides biological information through a website titled Biological Diversity in Korean Peninsula, an integrated biological resource information system, and controls a biological materials bank for sustainable use of biological resources. In addition, the Ministry of Environment promotes overseas biological resource research and joint research with partner countries, such as Tanzania and Vietnam, and is striving to establish an international cooperation system to secure overseas biological genetic resources.

[Figure 2-2-3] Integrated resource management system diagram of the Genetic Resources Information Management Center Protocol Execution Information

User of Genetic Resources Implementation of Contact Sharing System for Implementation of Organization Information on Genetic the Integrated Resources Domestic ABS Process Report System Information Domestic Access Ministry of Responsible Reporting Information Overseas ABS Process Environment Information Organization (Case of Litigation, Genetic Resources Profit Sharing Cases, etc.) Information Center Overseas Process Awareness-Raising Inspection Enforcement of Capacity Compliance Information Organization

* Source: Ministry of Environment

10. Ministry of Agriculture, Food and Rural Affairs

The Ministry of Agriculture has agencies under its control, such as the Korea Seed & Variety Service and National Agricultural Products Quality Management Service, and each respective agency is responsible for protection of geographical indications, new plant varieties, agricultural life resources, and forest resources.

The National Agricultural Products Quality Management Service operates a geographical indication system for agricultural products, aquatic products, and processed products. If the reputation and quality of the products are attributed to the geographical characteristics of a specific region, then the particular agricultural product would be registered and protected with a geographical indication, and promote quality improvement of geographical products and foster regional specialty industries. The Korea Seed & Variety Service is in charge of the system for protection of new varieties of plants that grants exclusive rights to new plant breeders.

26 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 27 In 7) Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter . Concerning forest resources and new forest 8) The National Institute of Agricultural Sciences of the Rural Development Administration and The Ministry of Agriculture is working in to workforce outstanding cultivate the seed industry The Ministry of Agriculture has enlisted the services of a special judicial police to crackdown Sciences Sciences under the Rural Development Administration (http://angr.nias.go.kr) and the agricultural genetic resources service (http://genebank.rda.go.kr). Sciences of Agricultural Academy the National system, Refer Refer to the website for the Animal Genetic Resources Information Management System, the National Institute of Agricultural www.koreantk.com.

7) 8) to to the Korean Knowledge Traditional Portal varieties, the National Forest Variety Management Center implement filing and of registration of new plant varieties. the protection for and a trial system varieties new forest addition, the National Institute of Agricultural Sciences aims to discover and protect traditional knowledge based on agriculture and rural areas. Further, to discover and protect traditional knowledge based on agriculture and rural areas, the National Institute of Agricultural Sciences has developed Knowledge the Classification Resource and Korean Traditional made it available service system (plants) that provides information on plants, microorganisms, insects, and agricultural life resources across the country and the Animal Genetic Resources Information Management System (animals) that provides information for each livestock species and and universities governments, local Developmentindividual owned Administration, by the Rural to secure the diversity of agricultural genetic resources and improve their utilization. advance domestically grown varieties overseas. varieties grown domestically advance the National Institute of Animal Science are responsible for the agricultural genetic resource through through training with emphasis on practical training and provide support for overseas local adaptability and marketability tests by establishing an international electronic application system of the International Union for the Protection of New Varieties of Plants (“UPOV”) to development of markers for breed identification, and conducting training and promotions to prevent infringement disputes. In 2019, in order to strengthen the foundation of the variety protection system, the Ministry of Agriculture reorganized the related system by revising the review guidelines. on the distribution of illegal and defective seeds and of the Forest Service Seed Dispute Mediation Council to respond to disputes over variety protection rights in the forest sector. To resolve the dispute in the event of infringement, the Ministry of Agriculture is promoting the 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

11. Ministry of Oceans and Fisheries

The Ministry of Oceans and Fisheries (“Minstry of Oceans”) promotes diversity and effective utilization of marine bio-resources and has empowered the Marine Biodiversity Institute of Korea to be responsible for collection, preservation, exhibition, and study on marine bio- 9) resources. The Institute has established the marine biodiversity information system and has been engaged in systematic management of bio-resources and sales of original sources in bio industries. In addition, in order to proactively address changes to international IP environment related to marine genetic resources, the Institute is paying attention to international norms and being responsive, for instance, through constant monitoring of international agreements such as the Nagoya Protocol, Intergovernmental Conference on Marine Biodiversity of Areas Beyond National Jurisdiction and the WIPO.

The Minstry of Oceans is promoting the Golden Seed Project for research and development of strategic seeds for variety protection in cooperation with related ministries such as the Ministry of Agriculture, Food and Rural Affairs. In 2019, the Minstry of Oceans endeavored to promote the development of strategic seeds for export and import substitution and secure the underlying technology for the seed industry infrastructure by applying for varieties and patents.

The Minstry of Oceans is showing commitment to improving the inspection system and developing markers for breed identification in order to streamline the operation of the variety protection system in the fishery sector by implementing measures such as preparing characteristics survey guidelines. The Ministry of Oceans is also promoting on-site consulting and training for related companies and analyzing the DNA of distributed seeds of marine plants to prevent unauthorized distribution of varieties under protection.

12. Ministry of Health and Welfare

The Ministry of Health and Welfare (“Ministry of Health”) has created an ecosystem for Bio- Health technology businesses in order to create and protect excellent IP through technical commercialization support and professional manpower throughout the whole process from the research and development stage to technology discovery.

9) The marine biodiversity information system, the Marine Biodiversity Institute of Korea (www.mbris.kr).

28 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 29 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter Through Through its diplomatic offices abroad, the MOFA has established a foundation for protection The Ministry of Health is committed to strengthening the on-the-job capability of IP for the Second, Second, the Ministry of Health supports a patent-based consulting support project in order First, First, the Ministry of Health is backing the support for coordinating a bio-health technology MOFA has been MOFA working on IP infringement such preventive measures as capabilities increasing of IP personnel at the diplomatic offices, establishing networks with officers in respective of IP industry. and identifying major trends countries, 13. Ministry of Foreign Affairs Foreign of 13. Ministry of overseas IP for Korean companies involved in IP related disputes in foreign jurisdictions. The health care field by providing incremental practical training on IP for the healthcare workers and workers on IP the for training healthcare practical field incremental by providing care health providing training by hosting a industryhealthcare IP seminar acquisition, regarding protection, field. care in the health outcome technical for of IP rights and counterplan design around methods need to be established. The MHW is also working to provide consulting consulting provide The MHW is also to working be established. need to methods design around and at of licensing the in commercialization stage order strategy for the to establishing promote entry early the market. for into technology having IP rights of excellent commercialization With With respect to filing patent application, researchers and startups need to perform patent perspective analysis from the start of research and development in dealing with promising technology in order to learn the parts of technology not covered by the existing patents and also consider potential patent infringement. With respect to considering patent infringement, prevent indiscriminate patent application filing practices and establish a strategy for acquiring IP for acquiring a strategy and establish filing practices application patent prevent indiscriminate from The the MinistryR&D planning of for stage. Health rights commercialization by accounting provides consulting services for for strategies filing patent application and patent infringement. provide provide support for discovery of IP that seem promising for and commercialization provide protection with patents from the R&D stage. Among the discovered technologies, the Ministry of Health is providing financial subidies for international patent application which include market. global of future the demands meet to considered are that technologies discovery project to secure IP rights for health care technologies and make available for practical practical for available and make technologies care health for IP rights secure to project discovery use. A 1:1 customized consortium was formed with private specialized institutions, such as patent corporations for medical institutions and universities, with excellent research results to 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

The MOFA cooperates closely with inter-agencies, such as IP-DESK, to quickly identify IP- related complaints so as to provide active support for prevention and response to IP disputes in respective foreign jurisdictions. The MOFA actively participates and provides support regarding discussions of conferences such as IP-related international organizations and regional councils in order to lead international cooperation and international initiatives in the field of intellectual property. In 2019, with the cooperation from MOFA and the SPO and other ministries, a joint TF was formed to address issues concerning companies that copy Korean products and conducted local response and training for foreign officials.

14. Ministry of SMEs and Startups

The Ministry of SMEs establishes and promotes policies and projects to strengthen technology protection capabilities of SMEs in accordance with the Support for Protection of Technologies of SMEs Act, the Promotion of Collaborative Cooperation between Large enterprises and SMEs Act.

Based on the enactment and implementation of the Investigation on Infringement of SMEs Technology and Operation Regulations of the Corrective Recommendation and Publication, the Ministry of SMEs has introduced an administrative investigation system for infringements on SMEs in December 2018 and implemented administrative measures, such as fact-finding, recommendation for correction, and public announcement. In 2019, the Ministry of SMEs established a technology infringement advisory group composed of experts in related fields to provide advice on the judgment of technology infringement during the administrative investigation process and a technology infringement investigation team with experts to investigate cases of technology infringement of SMEs.

The Ministry of SMEs is also in charge of the SMEs Technology Dispute Mediation and Arbitration Committee comprised of lawyers and technology protection experts. The Ministry of SMEs prepared grounds to end the administrative investigations when mediation and arbitration are established through the Support for Protection of Technologies of SMEs Act and other related regulations. The Ministry of SMEs promotes a working relationship with the Mediation and Arbitration Committee so that the case can be quickly resolved by encouraging the prosecution’s investigation to utilize mediation and arbitration.

30 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 31 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter The Ministry of Science is responsible for providing support to implementation of issues In addition, the Ministry of SMEs is promoting the improvement of the response system to the to system of the response the improvement In addition, the Ministry promoting of SMEs is The Ministry of SMEs is implementing the technology protection service that monitors The Ministry of SMEs has in place a technology escrow to keep key technology information in technology The key Ministryinformation keep of a SMEs to technologyhas in escrow place 15. Ministry of Science and ICT Science of 15. Ministry related to the Framework Act on Intellectual Propertyand discussion/mediation of major Protection Protection Committee was expanded and launched as the Fair Coordinating Committee that activities. unfair for coverage provides technology leakage of SMEs through cooperation with related ministries. In 2018, a task force for for force In 2018, a task ministries. with related cooperation of SMEs through technology leakage eradication of technology takeover was formed to monitor post-processes such as inspection of the implementation of measures for eradication across ministries. In 2019, the Technology and an advisory project that provides in-depth advice if there is a risk of serious security the Ministry Furthermore, of SMEs is primary providing by or caused leakage. problems damage response and in-depth legal advice from experts in the case of technology leakage of SMEs by support group. legal and technology protection support team technology protection operating system system that supports to setting up a physical response system including access controls and technical responsive solutions such as network, server, and document security. The Ministry of SMEs is also protecting SMEs from technology leaks by providing solutions through on-site diagnosis by legal and security experts and conducting a technology protection consultation confidentiality agreement. confidentiality technology data leakage and responds to it by controlling networks in real-time and analyzing traffic events. Moreover, the Ministry of SMEs is promoting a technology leakage prevention contract and them utilizes The in of Ministry case dispute. a technologyof SMEs further adopted contract guarantee fund, which had been operated only by the Korea Foundation for Cooperation of Large & Small Business, Rural Affairs for technology deposit, to make available technology deposit to SMEs. Lastly, the Ministry of SMEs has made it mandatory for SMEs to enter into a a reliable institution so that such information can be legally protected against dispute as dispute a result against protected so a be can such that institution reliable legally information of technology exploitation or theft. In 2019, the MSS newly adopted a Technology Transaction Record System, Registration which keeps records of technical data prior to entering into a 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

agendas submitted to the Presidential Council on IP; providing support to operation of Korea Intellectual Property Association in connection with R&D; and managing IP rights and technical intelligence in the field of information and communication technology and broadcasting technology.

The Ministry of Science carries out IP-related policies aimed at creation and promotion of high-quality IP and acceleration of relevant technology transactions by partnering with its IP strategies with relevant R&D as a ministry responsible for national science and technology policies. In 2018, the Ministry of Science engaged in substantializing the basis for training human resources specializing in IP, providing special R&D support for promising technologies fit for commercialization, and strengthening IP result-driven management.

The Ministry of Science also adopted a system where a dedicated patent officer is assigned to a large-sized R&D organizations in order to strengthen IP result-driven management, for the purpose of enhancing the chances of success of large-sized R&D organizations and creating a desirable outcome. In addition, the Ministry of Science has expanded support for commercialization and strengthening of the patent management expertise in ways that reflect the characteristics of research teams in connection with the Commercializations Promotion Agency for R&D Outcomes. The Ministry of Science has also provided support for IP commercialization-related diagnosis/consulting and IP technology-related marketing, customized for large-sized R&D. Furthermore, the Ministry of Science is attempting to expand its leadership in the standard organization by cultivating international standards experts through the development of information and communication broadcasting standards and supporting the advancement of international standards experts, and also making efforts to establish a cooperative system in response to international standards through cooperation with neighboring countries in the Asia-Pacific region.

16. Ministry of Trade, Industry and Energy

The Ministry of Trade, Industry and Energy (“Ministry of Trade”) is responsible for the Industrial Technology Dispute Mediation Committee for expedient resolution of disputes related to leakage or infringement of industrial technology in accordance with Article 23 of the Industrial Technology Dispute Mediation Committee of the Industrial Technology Outflow

32 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 33 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter In January 2019, the Ministry of Industry, Ministry of Justice, and related ministries of the IP The Industrial Technology Dispute Mediation Committee not only mediates disputes but disputes only not also mediates Committee Mediation Dispute The Technology Industrial technology, the theythe a determine to permitting amount court triple adopted compensation, of compensation of up to three times the initial damages amount, and also adopted a data system. order and confidentiality submission order are are promoting for changes to the legal system, seeking to expand remedy for infringement caused by technology takeover and revised the Industrial Outflow Technology Prevention and Protection Act in August to strengthen the punishment for leakage of national core technology and industrial technology. In addition, in the case of intentional infringement of industrial Office Office jointly announced measures to eradicate industrial technology leakage for the purpose of preventing outflow of national wealth through technology leakage and proposed 20 tasks in four areas, including strengthening the industrial technology management system and enforcing stronger punishment for industrial technology infringement. Furthermore, they that may be effected. The Ministry of Trade is working together to prevent to is may that by disputes The working be providing Ministrytogether effected. of Trade the future. for security capabilities improve to measures Prevention and Protection Act. Act. and Protection Prevention to provides for prepare countermeasures or minimize damage, against in form of technical and by effected technology or to counseling, companies legal leakage infringement or to companies 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Section 3. Activities of Local Governments for Protection of Intellectual Property

Local governments are pursuing policies based on their respective visions, taking into account each local government’s unique characteristics. Each year, the local governments are executing various activities to protect IP according to strategies, that reflect the visions of its respective local government, and detailed tasks laid out in the strategies. Each local government carries out its policy activities, but in common, most local governments are providing consulting services to prevent and respond to IP disputes to IP companies and carrying out projects to support overseas filing costs, as well as to make ideas right for individuals or prospective entrepreneurs. Furthermore, various efforts are being made to protect IP rights by operating educational programs for various consumers.

34 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 35 Pohang Chamber of Commerce Commerce Pohang Chamber of Andong Chamber of and Industry Gumi Chamber and Industry Commerce and Industry Commerce of and Commerce Daegu Chamber of Industry and Commerce Ulsan Chamber of Industry Property Regional Intellectual KIPA Ulsan Technopark (Busan) Center and Commerce Chamber of Changwon Commerce Jinju Chamber of Industry and Industry Gangwon Business Agency KIPA KIPA Business Agency Gangwon Center Property Regional Intellectual Gangneung Chamber (Gangwon-do) Taebaek and Industry Commerce of and Industry Commerce Chamber of Commerce Cheongju Chamber of Chungju Chamber of and Industry and Industry Commerce Strengthening the competitiveness of the of the competitiveness Strengthening industry engine growth new IP based jobs Daegu as the leader of IP leader and the hub of Ulsan as the top revolution the industrial innovation global tech of Implementation in Busan city based on IP convergence in the leap forward a new of Realization accelerating by economy Gyeongnam SMEs based on intellectual of the growth property Implementation of smart Gangwon of Implementation IP competitiveness future acquiring by Chungcheongbuk-do as the Northeastern the IP for and protect create hub to Asian future ◎ ◎ ◎ ◎ ◎ ◎ ◎ 2. Busan 14. Gyeongbuk 7. Ulsan 3. Daegu Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter 9. Gangwon 15. Gyeongnam 10. Chungbuk 12. Jeonbuk Jeju Chamber of Commerce and Commerce Jeju Chamber of Industry 6. Daejeon 1. Seoul Jeju IP Land, the hub combining nature and nature Jeju IP Land, the hub combining technology advanced ◎ 17. Sejong 8. Gyeonggi ◎ Metropolitan Regional Centers Regional ◎ Metropolitan 13. Jeonnam 4. Incheon 5. Gwangju 11. Chungnam 16. Jeju Political Visions of Local Governments and Distribution of Regional Agencies in Agencies Regional of Distribution and Governments Local of Visions Political 2019

Mokpo Chamber of Commerce and Commerce Mokpo Chamber of Industry KIPA Regional Intellectual Property Property Regional Intellectual KIPA (Gwangju) Center Korea invention promotion association, association, promotion invention Korea Chungcheongbuk-do branch KIPA Regional Intellectual Property Property Regional Intellectual KIPA (Sejong) Center Chungnam Northern Chamber of Chungnam Northern Chamber of and Industry Commerce Incheon Chamber of Commerce and Commerce Incheon Chamber of Industry Gyeonggi Technopark Suwon Chamber Suwon Technopark Gyeonggi Bucheon and Industry Commerce of Foundation(BIPF) Promotion Industry Seoul Metropolitan City (“Seoul”) executed the following 1) strategies: create high quality Jeonnam, taking a leap through IP in the a leap through Jeonnam, taking revolution the 4th industrial of era Leading the 4th Industrial Revolution based Revolution the 4th Industrial Leading on IP centered creative of on the creation Samrak industry, future convergent new Industry Life and Agricultural Seoul, an innovative growth city based on growth Seoul, an innovative is imagination where property intellectual realized Gyeonggi-do leading the 4th Industrial 4th Industrial leading the Gyeonggi-do IP competitiveness acquiring by Revolution Gwangju metropolitan city that acquires IP city acquires that metropolitan Gwangju can lead the 4th that competitiveness revolution industrial Korean Intellectual Property Outpost Property Intellectual Korean IP Daejeon, the hub city for Realization of new Chungnam by Chungnam by new of Realization IP competitiveness strengthening the smart economy, of Sejong, the center as a leading city for leaping forward property intellectual Global IP hub for the world, Leading city Leading in the world, Global IP hub for revolution the 4th industrial ◎ ◎ ◎ ◎ Park ◎ Daejeon Techno ◎ Seoul Business Agency ◎ ◎ ◎ IP and 2) invigorate commercialization, resolve issues related to IP rights and strengthen support for technology protection, 3) expand support for IP activities in global markets, and 4) 1. Seoul Metropolitan City 1. Seoul Metropolitan [Figure 2-3-1] [Figure 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

establish strong foundation for IP ecosystem, and detailed tasks to the above strategies include: a) explore and develop high-quality IP contents, b) provide comprehensive support for use and commercialization of IP, c) strengthen protection of SME’s IP rights, d) expand support for protection of technologies, e) strengthen association with the government’s IP policy, f) strengthen support for obtaining IP rights overseas, g) provide support for commercialization of IP rights in global markets, h) establish IP-friendly environment, i) invigorate network for strengthening IP foundation, j) invigorate creation and protection of IP in the public sector.

Especially, the Special Judicial Police for Public Welfare has acted independently to crackdown on trademark rights infringement, and has operated the Technology Protection Support Group and Technology Protection Consultation and Reporting Center to provide practical relief to SMEs on issues related to technology infringement. Moreover, Seoul has provided consultation and counseling services to Seoul citizens and SMEs for IP dispute resolution , and also provided partial support for the expenses required for trials, litigation, and the crack down on infringing goods. Other efforts were made to provide high-quality IP services, including signing MOUs between organizations related to technology protection such as the Korea Foundation for Cooperation of Large & Small Business, Rural Affairs, Korea Intellectual Property Protection Agency (“KOIPA”), and Korea Copyright Protection Agency (“KCOPA”).

2. Busan Metropolitan City

Busan Metropolitan City (“Busan”) executed the following strategies: 1) establish a system to create valuable IP, 2) increase utilization of IP for maximization of added values, 3) strengthen IP capabilities, and 4) build foundation for IP that is flexible to changes, and detailed tasks to the above strategies include: a) create IP through R&D, b) provide support for global IP- based businesses, c) provide support directly to SMEs for IP-related business, d) Operate IP Narae program, e) operate stepping stone program, f) facilitate network business to promote technology transaction, g) operate Busan United Holdings, h) strengthen competitiveness related to design of local SMEs, i) Promote marketing for local seafood brands of Busan, j) create K-Ground Intellectual Property Fund, k) provide IP education for the disadvantaged, l) raise IP awareness for elementary, middle, and high school students, m) spread awareness of IP among public officials, n) hold a celebration event (IP Festival) on the Invention Day, o) provide

36 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 37 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter Daegu Daegu Metropolitan City (“Daegu”) executed the following 1) strategies: provide support In In particular, Busan launched a project to provide comprehensive support to global IP generation generation promising contents and region-representing create brands, design and software, g) discovery of historical, cultural and traditional resource contents, h) provide support for brand- making of agricultural, animal, and special products representing specific region, i) spread efforts, efforts, b) provide support for creating IP through R&D efforts in newly emerging technology fields, c) promote and commercialization technology trade of high-quality IP, d) promote creating customized IP and focus support for knowledge-based SMEs, e) provide support for next- f) discover ideas, business with excellent IP and starting to related human resource training competitiveness competitiveness of SMEs, 3) experts cultivate in the field of IP and provide support for IP-based start-ups, 4) strengthen competitiveness of contents, brands, and design, 5) spread culture of respect and protection of IP, and 6) establisha strong foundation for IP activities, and detailed tasks to the above include: strategies a) create high-quality IP through IP and strategies R&D 3. Daegu Metropolitan City 3. Daegu Metropolitan for creation and of commercialization high-quality IP through R&D partnership, 2) promote IP and brand development performance and operated the excellent patent technology research group, IP research group, and IP expertise sharing business to establish a job invention system . IP network and a local employees government for Busan further provided IP education to the disadvantaged and opened IP courses at Dong- Eui University, Silla University, and Dongseo University and supported industry-academia joint employment. Buan also subsidized the costs of applying for IP rights to help strengthen the competitiveness of local design industry and seafood brands through the protection of design providing providing consulting, and dispatches experts to resolve IP issues. In addition, Busan launched, SMEs such as IP services to comprehensive provides which project, the IP Narae simultaneously, dispute prevention consulting and, the IP Narae project, which provides support to individuals and prospective entrepreneurs for securing the right to ideas or how to commercialize ideas. employment-related employment-related IP local talent training project, p) hold a Citizen Invention Contest, and q) in IP industry. network establish companies in a customized manner, such as subsidizing overseas patent application costs and 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

culture of protecting IP, j) share expertise related to IP and improve accessibility, k) organize administration systems for IP, l) promote inventions, and m) train contents creators and expand citizens’participations.

In particular, Daegu provided comprehensive support for IP-related projects such as overseas applications and patent maps to local SMEs that are doing business oversea or planning to do business overseas and established IP rights support systems, such as local expert consulting, for SMEs to resolve IP-related difficulties locally. In order to strengthen local IP network, Daegu launched the IP Promotion Council and held workshops and also promoted employee inventions of Daegu City employees,

4. Incheon Metropolitan City

Incheon Metropolitan City (“Incheon”) executed the following strategies: 1) create IP through R&D business in promising new technology fields, 2) discover next-generation IP contents and strengthen ICT competitiveness, 3) establish IP foundation for promotion of the 4th industrial revolution, 4) establish foundation for commercialization of SME IP technology, 5) expand the enhancement of domestic and foreign IP bases for SMEs and venture companies, 6) strengthen SME IP (design, brand) competitiveness, 7) provide support and monitoring on IP disputes involving SMEs and venture companies, 8) provide IP financing and create quality jobs for SMEs and venture companies, 9) establish a strategy for spreading a culture of respect for IP and create an ecosystem, and detailed tasks to the above strategies include: a) strengthen foundation for patent, design, and brand rights, b) strategic utilization of IP from the planning phase, c) strengthen competitiveness of IP for design/brand industry, d) strengthen ICT competitiveness and discovery of next-generation contents, e) provide convergence support for commercialization of IP, f) provide comprehensive support for promoting IP, g) provide support for and monitor disputes on IP-related issues, h) make available IP financing, i) establish foundation for commercialization of IP, j) implement foundation for promoting technology commercialization, j) promote open innovation with participation of citizens, k) provide venue for citizens’ participation, l) encourage and raise awareness of IP, l) improve access to IP, m) provide training for IP lecturer, n) cultivate creative IP human resource, o) operate IP experts’ discussion boards, and p) establish foundation for IP policies.

38 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 39 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter In particular, Gwangju supported technology transaction and through commercialization Gwangju Metropolitan City (“Gwangju”) executed the following 1) strategies: promote In particular, Incheon conducted Korea-China IP solution business in order to block the as IP dispute prevention, was provided for SMEs, and startup consulting, such as securing of rights for ideas, was provided for individuals or prospective entrepreneurs. Gwangju operated IP sharing, talent IP managers’ clubs, and an local networks IP government to create ecosystem of IP. awareness raise to children local for programs IP education and operated protection, and protection, use. The Direct IP Support Project was implemented to provide comprehensive provide maps and to and patent rights property industrial of overseas the acquisition support for SMEs promising by selecting process management IP solutions issues to arising in the corporate for export by region. Furthermore, technology and management consulting, convergence such technology transaction promotion network business and prepared a venue for information exchange on technology such commercialization as holding a technology commercialization startup investment event for implementation of a balanced policy in the areas of IP creation, provide provide support for IP-based 4) commercialization, strengthen IP creation capability associated with R&D, 5) provide planning support for content discovery, and detailed tasks to the above include: strategies a) promote creative inventions and cultivate creative talents, b) provide of IP. commercialization support for IP, and c) provide creating support for 5. Gwangju Metropolitan City Metropolitan 5. Gwangju creative inventions and cultivate creative talents, 2) strengthen IP competitiveness of SMEs, 3) consulting consulting services to solve IP-related problems within the province. In 2019, Incheon signed an agreement in the field of IP with the city of Weihai, a pilot city for the Korea-China FTA, to SME support projects. for and win-win measures cooperation promote possibility possibility of IP disputes in China and secure IP for Korean companies. Incheon also made it possible for by SMEs providing IP to secure competitiveness and consulting support for IP rights in China for those companies exporting to China or planning to export to China and providing 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

6. Daejeon Metropolitan City

Daejeon Metropolitan City (“Daejeon”) executed the following strategies: 1) create strong IP that drives innovative growth, 2) establish IP-based business and promote commercialization, 3) foster and protect global IP companies that lead overseas markets, 4) Create an IP base for building an IP hub city, 5) cultivate and utilize creative IP talent, and detailed tasks to the above strategies include: a) provide support for SME innovation growth and strengthening technological competitiveness, b) provide SME R&D support in connection with government- funded research institute, c) provide technical support for high-tech material industry, d) develop advanced process technologyby Advanced Institute of Nano Technology, e) establish smart gene medicine-based technology platform, f) establish IP service companies and revitalization of corporate attraction, g) provide comprehensive support for technology commercialization of innovative growth companies, h) establish technology transaction promotion network, i) establish software convergence cluster, j) provide consulting on overseas IP dispute prevention and response and foster global hidden champions, k) provide global-up support for promising SMEs, l) provide 3-up support by corporate growth cycle, m) operate Daejeon Copyright Service Center, n) operate the base of the IP hub city, o) establish a platform to support companies utilizing science and technology talents, p) host Daedeok Science Forum·World Science Forum, q) operate ‘Silver Mentoring and Coaching’ utilizing highly experienced scientists, and r) provide support in strengthening capacity of R&D manpower in UST-linked area.

In particular, Daejeon hosted the 1st Daejeon International IP Conference and established a global cooperation network between Daejeon and Germany, which served to enhance corporate IP capabilities through sharing of major trends in domestic and foreign IP and business industries. In addition, Daejeon-Munich Korean patent attorneys, local German patent attorneys, and German IP Office meetings were held to identify the latest trends and issues with respect to local IP rights. Dajeon provided marketing and IP search solutions to IP service companies to create an IP service environment. Furthermore, Daejeon provided consulting services to local SMEs to strengthen their capacity to respond to international IP disputes and operated the IP curriculum by signing agreements with Chungnam National University, Hanbat University, and Daedeok University. Daejeon also provided step-by-step consulting for patent application costs and IP dispute prevention strategy to SMEs and prospective entrepreneurs to

40 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 41 to invest local government budgets with Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter 10) Ulsan provided testing and financial support for Overseas Standard Certification in order to Ulsan Metropolitan City (“Ulsan”) executed the following 1) strategies: create and Support for Industrial property rights certification, provision of customized technology information on R&D to venture companies, companies, provision of 4th industrial-based customized technical information, one-stop enterprise support, support for next- technology of SMEs. generation

10) prospective prospective entrepreneurs. Ulsan has analyzed and diagnosed regional industrial technology capabilities using IP and statistics, published a periodic report for 2019 for use in policy formulation. enhance enhance competitiveness by discovering five tasks an emphasis on the creation and protection of IP of local companies. Ulsan operated the IP Narae program for companies in Ulsan, allowing SMEs to acquire overseas IP rights, and the IP support to and consulting securing program of stone rights for of ideas individuals stepping and related manpower and IP capabilities. manpower related increase SMEs doing business in overseas markets and resolve difficulties regarding IP-related issues. Ulsan has endeavored to strengthen SMEs’ IP creation and protection activities and commercialize commercialize IP and technology transactions, e) strengthen support for IP activities of SMEs, f) protect ideas and technologies of SMEs, g) promote employee invention systems and implement proper compensation, h) provide support for resolution of IP-related issues for overseas businesses, i) provide support for promoting the IP service industry, and j) increase IP- SMEs, 3) provide support for IP activities in global market, and 4) provide strong foundation for IP and ecosystem, detailed tasks to the above include: strategies a) promote high-quality IP with and IP R&D, to strategies b) R&D apply in strategies patent the newly emerging technology area, c) strengthen proactive IP management by public research agencies, d) promote and 7. Ulsan Metropolitan City 7. Ulsan Metropolitan Commercialize high-quality IP, 2) strengthen IP acitivities and improve competitiveness of strengthen strengthen the competitiveness of local companies, and experts in the field visited to provide expertise on the such necessary as matters IP overseas that for etc. applications, are companies export. to or planning overseas goods exporting 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

8. Gyeonggi-do

Gyeonggi-do executed the following strategies: 1) create high-quality IP based on consulting, 2) strengthen IP protection to realize a fair economy, 3) promote the use of IP by encouraging private technology transactions, 4) establish a foundation for Gyeonggi-do type IP ecosystem, and detailed tasks to the above strategies include: a) provide support for creation of and operate management of provincial IP rights, b) provide support for active use of compensation for employee invention, c) create excellent IP through the application of IP strategy – provincial R&D taks, d) promote IP Stepping Stone Program, e) promote IP Narae Program, f) provide direct support for SME IP, g) foster global IP companies, h) prevent technology takeover and provide technology protection for SMEs, i) take measures in reponse to and in prevention of IP disputes, j) establish a cooperation system to protect provincial industrial technology, k) establish a network to promote technology transactions, l) cultivate IP professionals and supporting employment, m) establish and operate IP doctor, and n) strengthen IP-based cooperation.

Gyeonggi-do worked to unify the management of IP rights by designating the Gyeonggi-do Science and Technology Department and Gyeonggi Intellectual Property Center as dedicated departments to manage all of the IP rights-related issues in the province. In order to encourage and protect employee invention system, Gyeonggi-do provided compensation to inventors for registration and assignment of the patents in recognition of achievements of the invention as a public official and expanded the Gyeonggi-do technology protection desk to provide regular consultation on technology protection for SMEs. Gyeonggi-do also established a technology and patent protection response system ,by using experts (IP doctors), to analyze whether technology has been stolen or leaked and to support the consulting on IP dispute prevention.

Gyeonggi-do has established a system of cooperation with related organizations, including Special Judicial Police for Industrial Property, Gyeonggi Branch of the National Intelligence Service, South and Northern Gyeonggi Police Agency, Ministry of SMEs, and Technology Guarantee Fund, for criminal and administrative measures and established and operated Gyeonggi SME Technology Protection Council with Small and Medium Business Council and technology protection experts as a cooperation system for the protection of industrial technology in the province. Gyeonggi-do enacted a statute to includ the right to investigate defective seeds and varieties in the scope of the duties of the special judicial police in the

42 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 43 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter Gangwon-do has provided financial support to SMEs for costs associated with filing IP-related with filing IP-related associated costs SMEs for financial support to has provided Gangwon-do Gangwon-do executed the following strategies: 1) acquire a 1) new acquire for IP driving in the force the Gangwon-do following strategies: executed 4th do, including Catholic Kwandong University, Halla University, and Hallym University, have creation supportfor has provided Gangwon-do programs. IP education developed and operated and protection of IP by providing compensation for job inventions related to research and development of new antibody drugs. applications applications in overseas jurisdictions. maximize To the effects of IP support projects, Gangwon- do used on/offline channels to promote IP support projects. Universities based on Gangwon- research research base for local IP, g) Scripps foster Korea Antibody Institute and Hongcheon Institute of Medicinal Herb, h) and bio companies foster promising star i) medical companies. device Foster startups, and j) make available growth of and technology development of plasma industry and production technology based on quantum dot nanopowder, and advanced laser-specific display technology. a) provide support for securing IP rights in Gangwon-do, b) provide support for strengthening the competitiveness of fundamental technology, c) holda bio export conference and open a SMEs, of IP-R&D for application for a foundation d) establish exhibition, device medical Gangwon e) strengthen entry to overseas market by and protection of local companies, f) strengthen industrial revolution, 2) strengthen IP competitiveness and protection capabilities of SMEs, and 3) capabilities and protection IP competitiveness 2) strengthen revolution, industrial include: the strategies above to tasks and detailed IP local ecosystem, for a foundation establish comprehensive comprehensive support to companies for brands, patents, and designs for global IP companies exports. with promising 9. Gangwon-do province in province 2018, and then an on conducted investigation illegal and defective seed distribution companies in 2019. Furthermore, Gyeonggi-do has provided a direct IP support service for SMEs to assist with the IP immediate support team to visit the site for difficulties related to IP of small companies and provide customized IP consulting in real-time and provide customized 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

10. Chungcheongbuk-do

Chungcheongbuk-do executed the following strategies: 1) expand the base of local IP, 2) strengthen IP capabilities of SMEs, 3) promote IP-based entrepreneurship, 4) provide support for creation of regional-specific IP, 5) establish local copyright infrastructure and corporate support strategies, and detailed tasks to the above strategies include: a) operate the Chungbuk IP Executive Club, b) promote IP City Revitalization Project, c) hold the Chungbuk Student Invention Idea Contest, d) customize mobile patent counseling tour for city and county, e) provide support for patent map for commercialization of promising patent, g) foster global IP star companies, h) provide direct IP support for SMEs, i) provide support for acquisition of overseas IP rights for companies engaged in exporting, j) provide support for strategies responding to International IP dispute, k) provide support for SME design development, l) open a design development product exhibition, m) promote technology transaction promotion network business, n) promote IP Narae (IP support for technology-based start-up companies), o) promote IP stepping stone (IP training and support for pre-founder), p) provid a patent zone one-stop service, q) provide support for domestic and foreign IP rights, r) provide prototyping support, s) select a leading venture company in Chungbuk t) provide support for discovery and commercialization of excellent works, u) hold a special lecture on the strategy of using SME copyright, v) provide support for diagnosis and consulting on SME copyright, and w) provide support for SME copyright.

Chungcheongbuk-do provided support to SMEs and venture companies with poor IP access due to local and temporal limitations by providing customized mobile patent consultation and promoted a balanced development of local enterprises by providing support for securing of rights for domestic and international IP for SMEs and individuals in northern Chungju area (Chungju, Jecheon, Danyang) to overcome the situation where the IP-related support projects are concentrated in the central region of Chungbuk. Chungcheongbuk-do also attempted to secure external competitiveness through IP rights in the agricultural field by supporting the establishment of IP strategies and consulting and enabled SMEs to secure IP competitiveness by resolving and supporting the difficulties of IP of SMEs in the province.

44 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 45 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter Jeollabuk-do executed the following 1) strategies: strengthen the IP-based capabilities of Chungcheongnam-do Chungcheongnam-do has provided support for IP consulting for strengthening the overseas Chungcheongnam-do Chungcheongnam-do executed the following 1) strategies: promote IP creation, 2) promote the above include: strategies a) provide support for of commercialization SMEs using carbon composite process equipment, b) develop high-quality carbon fiber additives, c) provide technical support for national food cluster companies, d) provide support for R&D tailored to growth growth engine industry of Jeollabuk-do through R&D, 2) establish a foundation for the job economy ecosystem by promoting the use of IP, 3) establish a system for creating IP values, 4) strengthen IP capabilities through the development of new varieties, and detailed tasks to crops for enhanced functionality tailored to consumption trends. consumption to tailored functionality enhanced for crops 12. Jeollabuk-do KIPPA and the Korean Trade Commission. held Chungcheongnam-do IP workshops and for persons Trade the Korean KIPPA in charge of IP-related tasks in basic local governments to raise awareness of public officials has developed Institute about a IP. new Also, Technology the Agricultural Chungcheongnam-do variety of horticultural crops for domestic and export purposes and a new variety of special do, which has the highest share of exports and trade balance. In addition, Chungcheongnam- do has offered various special lectures on the subject of IP protection for Chungnam to many organizations, including IP Managers Club and Global IP Star Companies. Chungcheongnam- such as IP the to protection, related with organizations system a do cooperation has established SW quality capability, and h) promote agricultural food product design business and develop crops. of major specialized varieties excellent competitiveness of SMEs by considering the industrial of characteristics Chungcheongnam- detailed tasks to the above strategies include: tasks to detailed the a) above provide strategies support for securing IP overseas rights, b) provide support for creating patent, brand, and design IPs, c) promote IP protection, d) provide support for technology transaction promotion network, e) establish a foundation for raising awareness of local IP, f) create local representative contents. g) strengthen Chungnam 11. Chungcheongnam-do IP protection, 3) promote IP utilization, 4) promote IP foundation, 5) promote new IP, and 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

local demand, e) provide support for revitalization of research institutes affiliated with strategic industries and for establishment of research institutes in special zones in Jeonbuk, f) foster the functional game industry, g) manage the Jeonbuk Creative Economy Innovation Center, h) foster global SMEs with strong IP rights, i) strengthen support for brand and design value creation capabilities and IP management for SMEs, j) strengthen IP centered on traditional resources, and k) secure international competitiveness through the development of new varieties.

Jeollabuk-do operated the IP stepping stone program in support of IP rights and provided the direct IP support for SMEs to quickly resolve corporate difficulties related to IP issues for local SMEs and venture companies. In addition, by operating the IP Narae program, Jeollabuk- do provided customized IP consulting, including strategies to prevent patent disputes for startup companies, and operated a global IP star company nurturing project that supports overseas IP application expenses for SMEs and venture companies that seeks to enter overseas market. Jeollabuk-do also implemented biological resource management policies, such as cultivating new varieties of functional fruit trees, paprika, and watermelon, as well as producing high- quality main varieties.

13. Jeollanam-do

Jeollanam-do executed the following strategies: 1) promote a system to create valuable IP, 2) implement efficient system to protect and improve IP 3) promote the use of IP to create, expand, and share added-values, 4) create IP flexible to changes, and 5) discover and promote new IP, and detailed tasks to the above strategies include: a) establish foundation and infrastructure for regional IP, b) discover and foster IP content and improve software quality, c) utilize IP information strategically, d) provide support for resolving IP-related disputes in case of software copyright infringement, e) promote implementation of networks to enhance technology trade, f) implement financial support system for IP, g) manage Jeollanam-do Copyright Service Center h) implement convergence clusters on newly emerging industry software related to energy, i) promote bio/genetic resources and new varieties response systems, j) develop stem cell- derived bio new drug material, k) provide support for advancement of next-generation stent process innovation technology, and l) provide support for advancement of bio-IoT sensor and component technology.

46 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 47 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter Through Through collaborations with the Gyeongsangbuk-do IP Center, KIPO, Korean Invention Gyeongsangbuk-do Gyeongsangbuk-do executed the following 1) strategies: promotion of hidden champions Through Through the Jeonnam Intellectual Property Center established by Jeollanam-do, problems Promotion Promotion Association, KIPPA, Korean Institute of Information, Patent and other related agencies, Gyeongsangbuk-do has provided support on addressing idea theft-related issues, training for fostering IP experts, and guidance for early settlement by adopting job invention raising raising awareness of IP, i) and strengthen technology j) commercialization, technology promote agencies. and relevant governments local between collaborations through commercialization based based on IP-R&D, b) manage R&D effectively for acquisition of high-quality IP, c) strengthen global product competitiveness, d) create IP foundation and protection of key technologies through managing diagnosis on IP, e) protect key technology and prepare for IP disputes, f) share IP capabilities among regional SMEs, g) establish foundation for creating regional IP, h) with with global IP competitiveness, 2) improve competitiveness of SMEs, and 3) establish infrastructure for regional IP, and detailed tasks to the above include: strategies a) provide intensive support for development and of commercialization newly emerging technology compensation system for system job compensation inventions for public officials the to promote public officials’desire research. for 14. Gyeongsangbuk-do added processing and technology materialization for agricultural resources, and secure patents such as the development of superior seeds for productivity improvement and new varieties to respond to climate change. Jeollamna-do has organized and supervised the Jeollanam- do Intellectual Property Committee to build a foundation for local IP and established a Jeonnam Copyright Service Center to resolve software copyright disputes and has conducted software asset management consulting and copyright training for content/ICT companies in has provided Jeollanam-do copying. software of illegal infringement prevent to Jeonnam region support to various activities to secure biological and genetic resources, develop high-value- and issues faced by companies, such as patent disputes, infringement response support, consulting outcall service, and prior technology investigation, have been resolved. Jeollanam- do has also set up the Jeonnam Information and Culture Industry Promotion Agency and the 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

compensation system and providing precedents. Gyeongsangbuk-do has also provided immediate support for securing IP rights to protect core technologies of companies in the province and established strategies to respond to IP disputes and risks in the early stages of technology establishment.

15. Gyeongsangnam-do

Gyeongsangnam-do executed the following strategies: 1) strengthen SME IP capabilities, 2) revitalization the base of IP in Gyeongnam, 3) foster start-up companies having IP bases, 4) provide support for commercialization of excellent IP, 5) provide support for protecting IP of SMEs, and detailed tasks to the above strategies include: a) manage the Gyeongnam Intellectual Property Support Council (network), b) provide IP support for SMEs in special R&D zones, c) hold IP-related competition to promote nurturing of IP manpower, d) hold events to support technology trade and revitalize IP, e) provide support for Post-BI specialization of industrial technology complex, f) provide support for certification and commercialization of excellent patent, g) provide support for paticipation of an exhibition having products that incorporate the technololgy of excellent patents. h) provide support for product design development of excellent patent, and i) provide consultation on IP protection and on-site IP consultation

In addition to offering IP training to SMEs, Gyeongsangnam-do has been holding annual information sessions in collaboration with the relevant agencies and has provided on-site consulting services to businesses with KIPPA. Gyeongsangnam-do has established the Gyeongnam Intellectual Property Center offers free consultation service for IP disputes twice a month in order to provide relief support related to IP disputes, such as providing comprehensive guidance on IP and consulting to civilians who visited for counseling on IP disputes. Gyeongsangnam-do has contributed to the management of SME IP by securing corresponding patents and trademarks.

16. Jeju Special Self-Governing province

Jeju Special Self-governing Province executed the following strategies: 1) promote expansion of creating IP and provide support for qualitative growths, 2) utilize and protect customized IP for SMEs, 3) implement self-sustainable IP ecosystem, and 4) provide support for improvement

48 제2장 ■ Chapter 02 ■ Intellectual Property Protection Policy ■ Chapter 01 ■ 지식재산 현황 ■ Chapter 03 ■ ■ Chapter 04 ■ 49 Chapter 02 Intellectual Property Protection Policy Policy Protection Property Intellectual 02 Chapter Sejong Special Self-governing City executed the following 1) strategies: secure driving force Jeju supports domestic and overseas patents, utility models, trademarks, and designs IP-based IP-based entrepreneurship, e) establish and manage the IP Center, f) establish R&D-based industry-academia joint research cluster, g) foster specialized agricultural industries and future agricultural ventures, h) promote public works, i) establish the culture that uses genuine foundation foundation for creating regional IP, and 4) environment create protecting IP, and detailed tasks to the above include: strategies a) develop industry-academy joint research and technology, b) foster technology and commercialization promote startups such as specialized industries of the region and the Sejong Startup Center, c) provide support for IP creation, d) promote 17. Sejong Special Self-Governing City 17. Sejong Special Self-Governing for the growth of regional SMEs, 2) strengthen IP competitiveness of SMEs, 3) establish a in the Jeju region and establishing a utilization and preservation system. Jeju is also making Jeju National at of IP courses the operation through in the IP province experts cultivate to efforts University. companies that companies export or plan to export. Jeju also provides a direct IP support service for SMEs needs. Jeju sought company’s each to according be resolved can so the disputes in the province the to take lead on with biological resources the entry and of into force lay the Protocol Nagoya the foundation for sustainable research by securing the information on biodiversity resources rights rights of SMEs in the province and promotes the IP Narae program that supports customized IP for strategies each stage of growth for technology-based start-ups and fosters global IP star companies to protect rights and prevent disputes in advance by supporting overseas rights for for for expansion of global markets, f) establish human and physical ecosystem based on IP, g) expand IP networks, h) promote competitiveness of the regional IP business, i) promote bio- industry with clean resources and IP, and j) establish environment for creation of contents and design. of IP caability in specialty of industries Jeju and and industries, prospective to tasks the detailed include: above strategies a) expand IP creation, b) implement IP portfolio by combining patent, trademark, and design, c) create high-quality IP through industry-academic collaborations and support use of IP, e) provide with the growth for force d) supply driving technology convergence, 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

software and offer training on security, j) manage IP education and k) create Sejong-type idea ecosystem.

Sejoing has been focused on creating an atmosphere that promotes protection of IP in keeping with the local characteristics and to this end, Sejong opened its Sejong Intellectual Property Center in January 2019, built industry-academia joint research cluster support center in February 2019, and opened the Sejong Startup Center in April 2019 and plans to expand its efforts. Sejong has supported R&D and technology commercialization of companies related to local specialty products in Sejong City, such as high-tech transportation equipment and precision medicine, and companies related to related (traditional) industries in the region and attempted to foster specialized industries in the agricultural field and future agricultural ventures including creating a startup villa to incubate startup companies in the smart farm and smart city fields and support for testbeds to advance products of agricultural venture companies.

Achievements of Policy Enforcement on IP Protection

Section 1. Enactment and Amendment on Acts for Protection of Intellectual Property 52

Section 2. Enforcement of Intellectual Property Infringement on Illegal Acts 64

Section 3. Intellectual Property Dispute Resolution 103

Section 4. Diffusion of Culture Respecting Intellectual Property 166

Section 5. Domestic and International Cooperation Activities for protection of Intellectual property 190 Chapter 03 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

The achievements of policy enforcement on IP protection in 2019 is largely divided into the Enactment and Amendment on Acts for Protection of Intellectual Property, Crackdowns on Infringement of Intellectual Property Acts, Intellectual Property Dispute Resolution, Diffusion of Culture Respecting Intellectual Property, and Domestic and International Cooperation Activities for Protection of Intellectual Property.

Section 1. Enactment and Amendment on Acts for Protection of Intellectual property

Regarding IP rights and trade secrets, attempts have been made to actively crackdown on infringement of IP rights and to provide more effective remedy to IP rights holders who suffered damages from infringement of IP rights through revision of the law to adopt a triple compensation system for infringement of patent rights and trade secrets so that substantial compensation for damages can be made for infringement, or expanding the scope of duties of special judicial police to crack down on offenses of IP violations. With respect to new plant varieties, laws related to IP rights, including the Patent Act, Copyright Act, Unfair Competition Prevention and Trade Secret Protection Act, the Protection Of New Varieties of Plants Act, are being enacted and amended in the direction of strengthening the protection of IP as a whole in 2019, including inreasing the fine for violation of relevant laws.

1. Industrial property Right

1) Amendment to the Patent Act

The Patent Act, revised in January 2019, introduced a triple compensation system that sets the amount of compensation up to three times the awarded amount of damages for patent infringement or breach of exclusive license agreement and newly enacted a clause about the obligation for presenting a specific act/behavior with respect to infringement acts. In addition, groundwork has been laid to allow the head judge to appoint a public attorney upon request

52 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 53 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter The “act” is referred to as “an act or an act to subscribe to the use of the process.” subscribe to to or an act as “an act to referred is The “act” If the practice of a patented invention is an act of subscribing to the use of a process, it is limited to the act of subscribing knowing that the use of the license. right or exclusive the patent violates process claimable’ amount. Have the party denying infringement act/behavior present relevant specifics the contrary. to Where an act of infringement is recognized as willful, the compensation amount shall be set at a level no more than three times the recognized amount of damages. Laying the basis for selection of the court-appointed agent in court and proceedings reduction of court fees processing in cases where the court public attorney. has appointed The amount of license fee compensation that can be claimed from the infringer is changed from ‘usually claimable’ amount to ‘reasonably Proclamation on Jan. 8, 2019 Enforced on Jul. 9, 2019 Enforced on Jan. 8, 2019 Proclamation Proclamation on December 10, 2019 Enforced on March 11, 2020 11, on March 10, 2019 Enforced on December Proclamation in 2019 Act the Patent Amendment 2 to in 2019 Act the Patent 1 to Amendment newly enacted) 9 newly enacted) fee compensation fee a specificact/behavior Insertion of a clause about Insertion of a clause about theobligation for presenting presenting for theobligation (Article 139-2 newly enacted) (Article 126-2 newly enacted) Paragraph 3, Item B amended) 3, Item Paragraph system (Article 128 Paragraph 8, (Article 128 Paragraph system court-appointed public attorney court-appointed invention (Article 94 Paragraph 2 (Article 94 Paragraph invention of the process invention (Article 2 invention of the process (Article 65 Paragraph 2 amended) (Article 65 Paragraph Concerning Concerning a process patent such as software, the previous law stipulated only the act of Amendment of a clause for license for Amendment of a clause Clarification of the implementation of the implementation Clarification Laying the basis for selection of the selection for Laying the basis Introduction of a triple compensation of a triple compensation Introduction Amendment of infringement of patent of patent Amendment of infringement process process invention as an implementation. However, to prevent the potential negative effect on the software industry as a result of the revised law, the effect of the right patent in such cases is is infringing. the use of the process that of subscribing, knowing the act to limited 3-1-2] [Table using that process as the implementation of a patented invention and therefore difficult to protect because it is unclear whether the act of transmitting software through the information and communication network is applicable. In consideration of this, the Act Patent was revised in December 2019 to consider the act of subscribing to the use of the process in the case of a by by a party during a trial and for a party to get exemption on court processing fees on a case attorney. public a court-appointed by represented 3-1-1] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

2) Amendment to the Enforcement Decree and Enforcement Regulation of the Patent Act and Enforcement Decree of Utility Model Act

The Enforcement Decree of the Patent Act was revised in July 2019 to reasonably adjust the subject of preferential examination, which can be examined in preference to other patent applications, to suit operational reality, such as excluding patent applications related to the outcome of quality certification projects with low priority review applications, adding international patent applications that have conducted international searches to the subject of preferential examination by the KIPO as an international search agency following the Patent Cooperation Treaty. Concerning utility models, it was revised in the same way through the revision of the Enforcement Decree of Utility Model Act on the same day.

[Table 3-1-3] Amendment to the Enforcement Decree of the Patent Act in 2019

Proclamation on July 9, 2019 Enforced on July 9, 2019 The “National New Technology Development Support Project or Quality Certification Project” in Paragraph 6 has been amended to “National Amendment of the subject of Research and Development Project pursuant to Article 11 of the Framework preferential examination Act on Science and Technology”, and the “International patent application (Article 9 amended) that conducted an international search as an international search agency under the Patent Cooperation Treaty”pursuant to the Paragraph 7-2 has been newly established.

[Table 3-1-4] Amendment to the Enforcement Decree of Utility Model Act

Proclamation on July 9, 2019 Enforced on July 9, 2019 Amendment of the subject of The “National New Technology Development Support Project or Quality preferential examination Certification Project”of Paragraph 7 has been amended to the “National (Article 5 Paragraph 7 amended, Research and Development Project pursuant to Article 11 of the Framework Paragraph 10 and 11 deleted) Act on Science and Technology”.

The Enforcement Regulation of Patent Act was revised in June 2019 to improve and supplement some deficiencies in the operation of the current system, including allowing of the named inventors to be added or corrected in the case, not only where the inventor’s description error is obvious, but also the case of attaching a confirmation document signed or sealed by all inventors, and allowing of the documents that can prove the authority to sign to be included in the certificate of signature of the person who goes through the patent procedure in addition to the notarized certificate.

54 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 55 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter The requirements have been relaxed to permit creators to make additional corrections post design decision registration by attaching a confirmation by all creators. document signed or sealed Implemented Implemented the for basis the judge to appoint head a upon public attorney involved. the cases for fees processing the court and reduced request government office certifying that the document was signed by the person. the document was that certifying office government Requirement Requirement that an inventor must be added prior to the decision on whether to grant a patent was deleted. However, the signature or seal of all holders patent and inventors must be in except attached, cases where there mistake. is a clear In the case of a foreigner, a certificate from the person’s home country Proclamation on January 8, 2019 Enforced on July 9, 2019 on JanuaryProclamation 8, 2019 Enforced Proclamation on June 19, 2019 Enforced on June 10, 2019 on June June 19, 2019 Enforced on Proclamation Proclamation on September 24, 2019 Enforced on October 1, 2019 on October 24, 2019 Enforced on September Proclamation in 2019 Act the Design Protection of Regulation the Enforcement Amendment to in 2019 Act the Design Protection Amendment to in 2019 Act Patent of Regulation Enforcement the to Amendment (Article 50 amended) (Article 28 amended) requirements for creators creators for requirements the Act. Amendment Amendment to the Design Protection Act and the Enforcement Regulation of requirements for inventors for requirements

(Article 125-2 newly enacted) patent (Article 8 (1) 3 amended) (Article patent Implementation of the Basis for of the Basis for Implementation Appointing a Public Attorney and Appointing a Public Attorney The Enforcement Regulation of the Design Protection Act was revised in September 2019, 3) to Act also was revised in Act as 2019 the on Trademark the same date The Design Protection Relaxation of additional correction correction of additional Relaxation Relaxation of additional correction of additional correction Relaxation Reducing the Court Processing Fees the Court Processing Reducing Expansion of certificate of authority for of authority of certificate Expansion signature of person who is applying for who is applying for of person signature the requirements for additional corrections by creators, and to reduce the inconvenience of design drawings. incorporating by applicants 3-1-7] [Table similar to the Enforcement Regulation of the Act Patent in June of the same year, to alleviate [Table 3-1-6] [Table establish the basis for appointment of the court-appointed public attorney. appointment of the court-appointed for basis the establish [Table 3-1-5] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

4) Amendment to the Trademark Act

The Trademark Act was revised in January 2019 to improve the quality of research and analysis related to application examination by changing the specialized agency, which performs duties such as trademark search related to the application examination for the registration of trademark, from a designated system to a registration system. In addition, groundwork has been laid to allow the head judge to appoint a public attorney upon request by a party during a trial and for a party to get exemption on court processing fees on a case represented by a court- appointed public attorney.

[Table 3-1-8] Amendment to the Trademark Act in 2019

Proclamation on January 8, 2019 Enforced on July 9, 2019 Registration of specialized Selection of specialized trademark agencies was changed from a designate trademark organization system to a registration system. (Articles 51 and 52 amended)

Implementation of the Basis for Laying the basis for the head judge to appoint a public attorney upon Appointing a Public Attorney request and reduction of the court processing fees in such cases. (Article 124-2 newly amended)

The Trademark Act was revised in April 2019 to relax the requirements for shared trademark rights so that each co-owner can independently apply for the renewal of the registration.

[Table 3-1-9] Amendment to the Trademark Act in 2019

Proclamation on April 23, 2019 Enforced on October 24, 2019 Relaxation of requirements for the renewal of the registration of For shared trademark rights, the requirement for registration renewal shared trademark rights has been relaxed so that each co-owner can independently apply for the (Article 84 (3) deleted, renewal. Article 118 (1) 2 amended)

5) Amendment to the Enforcement Decree of Trademark Act

In 2019, the Enforcement Decree of the Trademark Act has improved and supplemented some deficiencies identified during the execution of the current system allowing an objection to be added to a trademark application filed by preferential applicant if a trademark rights holder files an objection against preferential applicant’s trademark application.

56 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 57 Act on Unfair on Unfair Act 「 to provide the basis for appointing a 11) . 」 , crimes related to the acquisition, use, and leakage of 」 Patent Act Patent 「 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Design Protection Act Design Protection trade secrets stipulated in Article 18, Paragraphs 1 and 2 of the in Article 18, Paragraphs stipulated secrets trade Competition Prevention and Secret Trade Protection, and crimes related to the infringement of design rights or exclusive licenses prescribed in the 「 The scope of duties of judicial police officers has been expanded to crimes related to the infringement of patent rights or exclusive licenses stipulated in the Intellectual Intellectual Property Office for a trademark for which trademark registration has been applied and a request is made to the relevant specialized agency to notify the Commissioner of the Korean Intellectual Property Office 2019). on July 9, on June 11, 2019, and enforced (promulgated The following cases were added to the subject of preferential examination: In the case where an applicant for trademark in registration the subject of preferential examination receives an objection from other trademark rights holders related to the trademark application registration (promulgated and apply to on a June person 11, who 2019); where intends In the case enforced for preferential examination requests a prior trademark investigation to a specialized agency determined and notified by the Commissioner of the Proclamation on June 11, 2019 Enforced on July 9, 2019 on July June 11, 2019 Enforced on Proclamation Proclamation on December 18, 2018 Enforced on March 19, 2019 on March 18, 2018 Enforced on December Proclamation in 2018 Duty Act the Judicial Police Amendment to 2019 in Act Trademark of Decree Enforcement the to Amendment (Article 5 No. 38-2, and (8) newly amended) the Scope of their Duties Act of the Scope Attorney in Patent Trial in Patent Attorney Enactment Enactment of the Rules on the Appointment and Operation of the Public Amendment Amendment to the Persons Executing the Duties of Judicial Police Officers and examination (Article 12 (2) 2 examination

Article 6 No. 35-2 newly amended) In order to ensure that the socio-economically disadvantaged individuals can sufficiently 7) As a result of the Persons Executing the Duties of Judicial Police Officers and the Scope 6) In addition to the Patent Act, the In Utility Act were revised addition Model on to the Act, Act, and Januarythe Patent the Design Trademark Protection 8, 2019, and came into force on July 9 of the same year. force into 2019, and came Expansion of subject of preferential of preferential of subject Expansion

Authorization of judicial police officers officers of judicial police Authorization to perform duties to officials of the JPO duties to perform to under unfair competition activities, from previouly limited scope covering trademarks and the activities. competition under unfair subject of the product confusion 3-1-11] [Table of their Duties Act (“Judicial Police Duty Act”) amendment in 2018, the scope of duties for KIPO special judicial police management has been expanded, as of March 2019, to include infringements of patent right, trade secrets, and design rightas well as product form imitation [Table 3-1-10] [Table protect protect their IP rights, the Act Patent has been revised 11) 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

public attorney in patent trials. The Rules on the Appointment and Operation of the Public Attorney in Patent Trial (promulgated on July 2, 2019, enforced on July 9, 2019)’’ were enacted to determine matters necessary for its implementation.

2. Copyright

1) Amendment to the Copyright Act

The Copyright Act was revised in 2019 to provide exemption for copyright infringement cases where other works are incidentally included in the main object such as shooting to support the development of the industry using virtual and augmented reality technology and that public cultural facilities can contribute to cultural improvement and development by using works of unknown authors. This amendment included reinforcement of the supervision of the competent authority for the copyright trust management company, which serves as a hub for the distribution of works. 「」 [Table 3-1-12] Amendment to the Copyright Act in 2019

Proclamation on November 26, 2019 Enforced on May 27, 2020 It is allowed to be reproduced, distributed, performed, exhibited, or New regulations such as incidental transmitted to the public when works that can be seen or heard are reproduction incidentally included in the main object such as filming in the process of (Article 35-3 newly enacted) taking pictures or recording sound or video. Where the owner of the copyright holder of the published work or his/ her residence is unknown even though a considerable investigation has New regulations such as reproduction been conducted among cultural facilities operated by the state or local by cultural facilities government, the material can be used to reproduce, distribute, perform, (Article 35-4 newly enacted) display, or transmit the work to the public for the purpose of collecting, organizing, analyzing, and preserving the material stored in the cultural facility and providing it to the public. Preparation of grounds for an The Minister of Culture shall allow the affiliated public officials to investigate investigation of copyright trust the business and property situation of the copyright consignment management and disciplinary management business entity and allow disciplinary action to be demanded demands against representatives of If the copyright trust management's representative or executive is sentenced copyright trust management to a fine or higher for misconduct related to his job. (Articles 108 and 108-2 newly enacted)

2) Amendment to the Enforcement Decree of the Copyright Act

The Enforcement Decree of the Copyright Act was revised in 2019 and stipulates the matters entrusted by the Copyright Act and the matters necessary for execution in regards to the rate of

58 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 59 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter future future distribution of undistributed compensation and the accumulation of compensation. undistributed Following Following the revised “Copyright Act”, organizations that receive compensation are required to accumulate a rate determined and notified by the Minister of Culture, Sports and in Tourism the range of 5/100 or more and 30/100 or less of the undistributed compensation considering the Proclamation on April 16, 2019 Enforced on April 17, 2019 Enforced on April 16, 2019 Proclamation in 2019 Act the Copyright of Decree Enforcement the to Amendment rate regulation rate paragraph 2 amended) paragraph Act Amendment Amendment to the Unfair Competition Prevention and Trade Secret Protection (No. 7 No. 4, Article 8 amended, (No. 7 No. 4, Article 8 amended, The Unfair Competition Prevention and Secret Trade Protection Act (hereinafter “Unfair 1) Meanwhile, Meanwhile, the Ministry of Culture has revised various notices related to the Copyright Act in Article 8-2 newly enacted, Article 18, Article 8-2 newly enacted, Undistributed compensation accrual accrual compensation Undistributed compensation compensation for intentional infringement of trade secrets for up to three times the amount of damage. Other were attempts made to strengthen the protection of trade corporate secrets by expanding the types of trade secret infringement activities and increasing the amount of leakage. secret trade penalties and fines for Competition Competition Prevention Act”) was revised in January, 2019 and introduced the Treble Damage Compensation System that loosened the requirements for trade secrets and allowed 3. Trade Secret and Industrial Technology and Industrial Secret 3. Trade Transmission of Library Works Transmission (July Compensation 1), for Receiving Designation of Organization for Audio Broadcasting/Digital the Transmission/Performance Use of (commercial) Albums by Performers (July 1), and Notification of the Accumulation Ratio of Undistributed Compensation 10). (December Textbooks of Works for the Use for of Compensation (7.1), and Notification 2019, such as of Notification Public Works Copyright Management and Guidelines (January 31), Notification of Organization Receiving the Compensation for School Education Purposes (July 1), and Notification of Organization Receiving Compensation for the Use of Reproduction and undistributed compensation accrual for compensation recipient organizations. recipient compensation for accrual compensation undistributed 3-1-13] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-1-14] Amendment to the Unfair Competition Prevention Act in 2019

Proclamation on January 8, 2019 Enforced on July 9, 2019 Alleviation of the Requirements Alleviated the requirements for accepting a trade secrets in such a way that for Trade Secrets it is accepted as far as the secret is maintained even if there is no reasonable (Article 2 Subparagraph 2 amended) efforts made. Establishment of the Treble Damage Allowed acceptance of the amount of compensation up to three times the Compensation System amount of damage received if it is believed that infringement of trade secret (Article 14-2 (6) and (7) newly enacted) was intentional. Expanded the definition of trade secret infringement to include illegally Expansion of the Scope of Trade leaking trade secrets outside the designated location with the aim of causing Secret Infringement damage to the owner or aining unfair profits or continue to keep a trade (Article 18 (1) amended) secret even after receiving a request to delete or return the trade secret from the owner. Reinforced Punishment on Modified the punishments on trade secret infringement to a fine of less than Infringement, etc. 1.5 billion KRW and imprisonment of less than 15 years and a fine of less (Article 18 Paragraph 2 amended) than 500 million KRW and imprisonment of less than 10 years, respectively. The fine on any person who intends or conspires to commit a crime of infringing trade secrets is to be increased from less than 20 million KRW to Increase of Fines for Premeditated less than 30 million KRW, and especially for someone who used the trade or Planned Crimes of Trade Secret secrets with knowledge of the fact that they will be used overseas, the fine Infringement (Article 18-3 amended) has increased from less than 10 million KRW to less than 20 million KRW in other cases.

2) Amendment to the Prevention and Protection of Industrial Technology Leakage Act

With technology leakage techniques becoming more sophisticated in proportion to the increasing trend of national core technologies, the Prevention and Protection of Industrial Technology Leakage Act was revised in August 2019 to establish strategies to strengthen the security of national core technology, sanction against leakage of information to outside for different purposes even if that information was acquired legally and to prevent leakage of industrial technology as a result of employee, with experience and skills, going over to overseas competitors of the same industry.

60 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 61 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter litigation litigation party or agent cannot use the industrial technology for purposes during the litigation. the litigation than continuing other The punishment for acquiring the national core technology of the institution by theft, deception, intimidation, or other unjust means to use or make use of national core technology abroad is reinforced from imprisonment for not more than 15 years or a fine of not more than 1.5 billion KRW to imprisonment for more than 3 years and a fine of not more than 1.5 billion KRW. industrial industrial technology through a legitimate channel for the type of obligation to prohibit the leakage and infringement of industrial technology is using or disclosing the information for a purpose other than the purpose for which provided. was the information It established regulations on compensation for damages caused by infringement of industrial technology, and if it is recognized that the infringement of business technology is intentional, the court can set the amount of compensation within the range of three times the amount as damage. recognized The court may order the submission of data necessary for proving the infringement or calculating the amount of damage caused by the infringement in a lawsuit on the leakage and infringement of industrial technology and may issue an order to maintain confidentiality so that the The head of the institution, that possesses and manages the national core technology should take measures to have employees with access to national core technology execute a contract regarding non-compete and confidentiality in order to prevent the leakage of the national core technology. The approval from the Minister of Industry,Trade, and Energy in advance is required if the institution with national core technology developed by receiving R&D funding from the state intends to proceed with overseas acquisitions, mergers, etc. If the institution possessing and managing other national core technologies intends to proceed with overseas acquisitions or mergers, etc., it needs to be reported to the Minister of Industry,Trade, and Energy in advance. containing information the person who has received where It added the case It prevented state agencies from disclosing information on national core technologies, but if there is no concern of adversely affecting the national security and the it economy, national is allowed be to disclosed hearing after the opinions of parties and interested consent obtaining from the of Minister Industry and Energy. Trade, Proclamation on August 20, 2019 Enforced on February 21, 2020 20, 2019 Enforced August on Proclamation Amendment to the Prevention and Protection of Industrial Technology Leakage Leakage Technology Industrial of Protection and the Prevention to Amendment Act in 2019 Act

enacted) damages technology infringement (Article 36 amended) (Article 14 amended) (Article 11-2 amended) Industrial Damage Act Industrial Amendment Amendment to the Investigation of Unfair Trade Activities and Relief for (Article 9-2 newly enacted) (Article 22-2 newly enacted) New regulations on contract on contract New regulations

(Article 22-3, Article 22-4 newly Additional obligation to prohibit prohibit to Additional obligation overseas acquisitions, mergers of mergers acquisitions, overseas Obligation to approve and report and report approve to Obligation the institutions with national core core with national the institutions (Article 10, Paragraph 1 amended) (Article 10, Paragraph New regulations on submission of on submission New regulations 3) The Investigation of Unfair Activities Trade and Relief for Industrial Damage Act was revised materials and confidentiality order and confidentiality materials leakage of national core technology core of national leakage handling national core technologies core handling national Strengthened penalties for overseas overseas penalties for Strengthened leakage of industrial technology and of industrial leakage national core technologyinformation core national New regulations on non-disclosure of on non-disclosure New regulations conclusion regarding management of management regarding conclusion New regulations on compensation for for on compensation New regulations turnover and confidentiality of experts experts of and confidentiality turnover [Table 3-1-15] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

in 2019 to expand the types of IP rights infringement to effectively remedy victims of unfair trade activities, such as IP rights infringement, and to stipulate that the expansion of the period of application for investigation of unfair trade practices, the actualization of the contents of provisional measures by the Trade Commissionas well as raised the level of penalties for importing and exporting products that violate the country of origin labeling.

[Table 3-1-16] Amendment to the Investigation of Unfair Trade Activities and Relief for Industrial Damage Act in 2019

Proclamation on December 12, 2019 Enforced on June 11, 2020 Expansion of types of unfair trade It added the act of exporting or importing goods that infringe on publication practices (Article 4 Paragraph 11 rights, database creator’s rights, and geographical indication rights protected and 3 amended) by laws and treaties for types of unfair trade practices. Expansion of the period for The period of application for investigation of unfair trade practices has been investigation of unfair trade practices expanded from within one year to within two years from the date of the (Article 5, Paragraph 2 amended) unfair trade practice. It specified the contents and effects of provisional measures by the Trade Actualization of provisional measures Commission for the case where there is a risk of irreparable damage or there by the Trade Commission is damage due to unfair trade practices and provided a basis for ordering (Article 7 amended, the provision of security for the case where a person applying for provisional Article 8 (2) newly enacted) measures fails to provide security. New regulations on the deadline The application for confirmation of whether it falls under infringement of for application for confirmation of IP rights should be done within two years from the date of realizing the infringement of IP rights intention to engage in unfair trade practices for the relevant goods or from (Article 14-2, Paragraph 6 the date of unfair trade practices. newly enacted) Increased penalties for those who The penalties for those who export or import goods with falsely labeled export or import goods of falsely origins, have been increased from imprisonment for not more than 3 years labeled origin or a fine of 30 million KRW to imprisonment for not more than five years or a (Article 40 amended) fine of 100 million KRW.

4. New Varieties of Plants

1) Amendment to the New Varieties of Plants Protection Act

The New Varieties of Plants Protection Act was revised in 2019 to adjust statutory deviations from other laws and secure the effectiveness of sanctions by improving the penalty rules, such as increasing the fines for perjury and crime of false indication.

62 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 63 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter KRW. The penalties for perjury have been raised from imprisonment for not more than 5 years or fines of not more than 10 million KRW to imprisonment for than 50 million KRW. more or fines of not than 5 years more not The penalties for false indications have been raised from imprisonment for not more than 3 years or fines of not more than 20 million KRW to imprisonment for not more than 3 years or fines of not more than 30 million In the case of approval under the Securing, Management, and Use of BioResources Act, it is assumed that a report on access to domestic genetic Article 9. has been filed under etc. resources, Proclamation on December 10, 2019 Enforced on June 11, 2020 2019 Enforced 10, December on Proclamation Proclamation on December 24, 2018 Enforced on June 25, 2019 24, 2018 Enforced on December Proclamation Perjury in 2019 Act Resources Amendment on the Genetic Partial in 2019 Act Protection Plants of Varieties New the to Amendment BioResources Act Act BioResources (Article 132 amended) (Article 226-2 amended) Sharing Act and Enforcement Decree of the Act of Decree and Enforcement Sharing Act Amendment Amendment on the Access to and and Genetic Resources Utilization of Benefit- The crime of false indication The crime of false 2) The Access to and Utilization of Genetic Resources and Benefit-Sharing Act (“Genetic Securing, Management, and Use of and Use Securing, Management, (Paragraph 24 No. 5 newly amended) (Paragraph Addition of approval according to the to according Addition of approval and Use of BioResources Act as an exception to the duty to report access to domestic genetic in June 2019. effect took and this amendment resources, 3-1-18] [Table Resources Resources ) Act was revised in 2018 to add approval according to the Securing, Management, [Table 3-1-17] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Section 2. Enforcement of Intellectual Property Infringement Regulations on Illegal Acts

For illegal acts violating the IP laws, not only are the National Police Agency and the SPO taking enforcement measures, such as crackdown or prosecution, or the Korea Customs Service taking measures to hold customs clearance by detecting goods infringing on IP rights, the KIPO, the Ministry of Culture, and the Ministry of Agriculture also have special judicial police to conduct online and offline crackdowns on infringement of industrial property rights, copyrights, trade secrets, and variety protection rights, and provide recommendations on corrective measures. As such, the Korean government is striving to protect IP by thoroughly grasping the situation of IP infringement and imposing sanctions against it.

1. Industrial Property Right

1) Apprehension and Handling of Industrial Property Right Infringement

The SPO receives and processes casesrelated to infringement of industrial property right, copyright, and IP right. The number of cases of such infringements registered at the SPO peaked in 2015 and since then it has been consistently decreasing. In 2019, the prosecutor’s office registered a total of 17,886 cases related to infringing Intellectual Property Act, a decrease of 3.86% from the previous year, of which a total of 17,736 cases were processed. The indictment rate is 16.18%, a decrease of 2.41%p from the previous year.

[Table 3-2-1] IP Rights Infringement Cases Processed by the SPO in Last Five Years

Category 2015 2016 2017 2018 2019 Case 51,458 32,486 23,716 18,605 17,886 Received Person 60,281 42,440 31,664 25,325 24,928 Case 51,515 32,489 23,670 18,569 17,736 Treatment Person 60,371 42,161 31,730 25,328 24,508

64 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 65 13) 971 624 651 598 536 983 1,117 1,735 1,108 1,037 16.18 13.40 Other 2019 12) 1,451 1,919 1,921 2,021 2,801 1,315 1,528 2,190 1,239 1,848 Not 13) Indicted 12) 13.77 11.96 2018 47.1 59.4 51.5 61.8 54.1 54.6 37.27 36.71 42.43 30.64 rate (%) rate Indictment 14.8 13.0 2,788 1,516 1,370 2,036 1,820 3,069 1,682 2,986 2,268 2,845 order 2017 Summary Processed 175 177 167 119 112 132 339 296 238 222 Non 14.4 12.5 Detained Trial 2016 17 14 31 97 28 55 99 83 64 118 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Detained 9.9 10.0 4,074 6,814 4,626 4,950 5,462 3,559 5,302 6,285 4,944 6,540 2015 Total Processed 5,001 3,526 4,999 5,280 4,533 6,664 4,044 6,355 6,885 5,346 Received Case Person Trademark Infringement Cases Treated by SPO in Last Five Years Five SPO in Last by Cases Treated Infringement Trademark Case Case Case Case Case Category Person Person Person Person Person Category Rate (%) Rate Infringement Infringement of the Act Trademark is the most common type of industrial property rights “Not indicted”refers to cases of no charges, suspension of prosecution, no guilt, no right to prosecute, and dismissal. prosecute, no guilt, no right to suspension of prosecution, of no charges, cases to indicted”refers “Not “Other”refers to suspension of prosecution, suspension of reference, repatriation of protection cases, and repatriation of other authorities. Indictment Indictment

2018 2019 2015 2016 2017 12) 13) * Source: Criminal Affairs Division, Ministry of Justice Criminal Affairs * Source: increase increase of 38.92% from the previous year. The indictment rate for the infringement cases of the year. the previous from of 5.72% 36.71%, a decrease was Act Trademark 3-2-2] [Table related infringement related cases received at the SPO. In 2019, the number total of infringing Trademark is Act 5,001 registered cases, an increase of 41.83% from the previous year. It has been decreasing since 2016 but increased in 2019. The number total of people by detected the SPO was 4,944, an * Source: Criminal Affairs Division, Ministry of Justice Criminal Affairs * Source: 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

The SPO received 312 cases related to infringement of the Patent Act in 2019, of which a total of 318 cases were processed, an increase of 3.25% from the previous year. The indictment rate of infringement cases was 4.40% a decrease of 0.15%p from the previous year, which has been decreasing since 2015.

[Table 3-2-3] Patent Infringement Cases Processed by SPO in Last Five Years

Processed

Trial order Category Received Processed Summary Not Non Indictment Other Total Detained order Indicted Detained rate (%) Case 354 352 - 3 24 7.7 194 131 2015 Person 702 737 - 4 31 4.7 382 320

Case 409 406 - 9 16 6.2 256 125 2016 Person 785 786 - 15 21 4.6 517 233

Case 367 363 - 8 12 5.5 227 116 2017 Person 758 731 - 15 16 4.2 428 272

Case 310 308 - 8 6 4.55 185 109 2018 Person 642 684 - 9 7 2.34 430 238 Case 312 318 - 5 9 4.40 201 103 2019 Person 617 610 - 7 10 2.78 345 248

* Source: Criminal Affairs Division, Ministry of Justice

In 2019, the SPO received a total of 19 cases related to violating the Utility Model Act, an increase of 35.71% from the previous year. The figure has been rapidly decreasing over the last five years. The number of cases processed by the SPO in 2019 was 18, the same as the previous year.

[Table 3-2-4] Utility Design Infringement Cases Processed by SPO in Last Five Years

Processed

Category Received Trial Processed Summary Indictment Not Non Other Total Detained order rate (%) Indicted Detained Case 56 60 - 1 4 8.3 33 22 2015 Person 99 110 - 2 5 6.4 61 42

66 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 67 7 5 8 82 11 32 12 25 12 175 107 245 169 102 103 108 267 200 Other Other 10 10 49 45 28 19 67 15 175 278 181 301 211 313 433 208 289 304 Not Not Indicted Indicted - - 7.9 7.3 7.6 5.4 6.4 2.9 2.8 7.11 4.27 9.66 10.5 4.40 10.3 13.5 11.76 16.67 rate (%) rate rate (%) rate Indictment Indictment - - 2 3 3 3 3 4 31 27 27 37 45 20 32 13 23 22 order order Summary Summary Processed Processed ------7 5 8 2 2 4 9 2 5 1 2 11 Non Non Detained Detained Trial Trial ------Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Detained Detained 27 18 18 39 72 66 34 591 421 512 341 102 352 542 302 582 636 304 Total Total Processed Processed 74 41 14 24 19 36 63 511 597 307 423 105 369 305 530 335 622 635 Received Received Years Five SPO in Last by Cases Processed Design Infringement Case Case Case Case Case Case Case Case Case Person Person Person Person Person Person Person Person Person Category Category In 2019, the SPO received a total of 423 cases related to violating the Design Protection Act, an Act, Protection the Design violating to related of 423 cases a total In 2019, the SPO received 2019 2017 2018 2015 2016 2019 2016 2017 2018 [Table 3-2-5] [Table increase of increase 14.63% from the previous year. which had been since decreasing 2014. The number by the SPO of 421, was of 19.6% an processed the cases from increase previous. The indictment year the previous from of 5.39%p 4.27%, an increase was rate * Source: Criminal Affairs Division, Ministry of Justice Criminal Affairs * Source: * Source: Criminal Affairs Division, Ministry of Justice Criminal Affairs * Source: 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

The National Police Agency conducts periodic and special crackdowns in enforcement of the Industrial Intellectual Property Act. In 2019, the National Police Agency addressed a total of 182 cases related to violations of the Patent Act, an increase of 3.41% from the previous year, arresting 366 people and indicting 54 people. In addition, it processed a total of 2,708 cases related to violations of the Trademark Act, an increase of 8.97% from the previous year, arrested 3,692 people and indicting 2,335 people.

[Table 3-2-6] Industrial Property Right Infringement Cases treated by National Police Agency in Last Five Years [Unit: case, person]

Category 2015 2016 2017 2018 2019 Case 208 188 192 176 182 Patent Act Arrested 487 353 398 364 366 Indicted 59 66 73 52 54 Case 2,692 3,113 2,262 2,485 2,708 Trademark Arrested 3,543 4,248 3,272 2,832 3,692 Act Indicted 2,727 3,251 2,514 1,758 2,335

* Source: Investigation Department, Korean National Police Agency

2) Export-Import Restriction on Products Infringing Intellectual Property Right

Since 2009, the Korea Customs Service has been cooperating with relevant agencies to crack down on IP rights infringements, including dispatching experts from the Trade-related Intellectual Property Protection Association to Incheon Airport International Postal Customs. In 2018, the Korea Customs Service arrested 245 cases of violation of the Trademark Act. The figure accounts for about 90% of the total number of infringement of the IP right, discovered by the Korea Customs Service. Most of the related items detected in the customs clearance phase are in relation to the violation of the Trademark Act.

A total number of trademark infringement cases identified by the Korea Customs Service was on a decline until 2017 but started to increase in 2018. In 2019, the number of infringements increased by 59.09% compared to the previous year. The total value of trademark infringing goods was 643.1 billion KRW, an increase of 29.47% from the previous year.

68 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 69 10 66 169 369 303 6,431 6,609 (bin) Value [Unit: case] 2019 2019 2 26 245 273 Case [Unit: case, billion KRW] billion case, [Unit: 53 3 245 298 70 4,967 5,040 (bin) Value 2018 2018 1 4 159 154 Case 35 255 290 1 1 1,402 1,400 (bin) Value since 2009 quickly more in since and to order 2017 15) 2017 1 3 126 122 Case 28 278 306 - 3 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 2016 3,192 3,195 (bin) Value - 2016 4 162 166 17 Case 363 380 - 4 2015

4,629 4,625 14) (bin) Value - 2015 2 175 173 Case Entry Reservation on Infringing IP Rights Items by Korea Customs Service in Last Intellectual Intellectual Property Right Infringement Identified by Korea Customs Service in Five Years Five Last Five Years Last

Total Other Category Total Other Patent In addition, in 2019, the Korea Customs Service held at the customs clearance 369 cases In 2019, the Korea Customs Service has made through IPIMS requests for assessment of The Korea Customs Service has operated the IPIMS Service has operated Customs The Korea Limited Limited to those items with suspended customs clearance in the customs clearance phase after the import report phase. Systems. Management Information Property Intellectual Excludes personal items (portable, parcel/mail, etc.). parcel/mail, (portable, items personal Excludes Trademark rights Trademark

Category Trademarks infringement infringement to IP rights holders in 4,137 cases, and among them, 3,243 cases, 78.39% were 14) 15) Customs Service Customs is able to send to the IP rights holders information about the goods suspected of IP rights infringement during the phase customs clearance for the IP rights holder to provide is present. infringement direct assessment on whether * Source: KCS * Source: effectively appraise and detect IP rights infringing goods. With the aid of this system, the Korea number of cases had been decreasing steadily since 2015, but since 2019 it increased by about year. the previous 23.67% from 3-2-8] [Table * Source: KCS * Source: suspected of IP rights infringement, including infringement of trademark rights. Most of cases regarding suspending customs clearance mainly consist of infringing trademark rights. The [Table 3-2-7] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

found to be IP rights infringement goods.

[Table 3-2-9] Appraisal on Suspected IP Rights Infringement by IPIMS and Confirmation of the Infringement in Last Five Years [Unit: case]

Category 2015 2016 2017 2018 2019

Appraisal request 3,789 3,387 3,448 3,820 4,137

Appraisal Infringement 3,367 2,688 2,819 3,209 3,243 results Non-infringement 422 699 629 611 894

* Source: KCS

3) Online/Offline Counterfeit Controls

A) Operation of Special Judicial Police for Industrial Property

The KIPO launched a Special Judicial Police) in September 2010, establishing regional offices 16) of the Special Judicial Police in Seoul, Daejeon and Busan in order to effectively prevent sale and distribution of trademark infringing counter feit goods. Furthermore, with the enactment of the Judicial Police Duty Act revised in March 2019, it was newly launched as a special judicial police for industrial property that expanded its scope of duties through investigations of product type imitation among patents, trade secrets, design infringement, and unfair competition.

In 2019, the KIPO seized a total of 6,269,797 items, an increase of about 1,155.71% from the previous year. The value of the seized items came to 63.31 billion KRW based on the prices of authentic items, which was about a 173.61% increase from the previous year. The reason for the sharp increase in the number of seized items compared to the previous year is that the number of seized items was large due to the crackdown on the distribution of counterfeit mask packs.

[Figure 3-2-1] Regional Office of the Special Judicial Police for Industrial Property Seoul Office (Metropolitan Area)

Planned Investigation (Nationwide) Busan Office Daejeon Office (Yeongnam Area) (Chungcheong·Honam Area)

* Source: KIPO 「」 16) Article 5, No. 38 and Article 6, No. 35 of the Act on the Duties of the Judicial Police .

70 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ ] 71 376 KRW 1,200 1,000 800 600 400 200 0 633.1 6,269,797 2019 633.1 of Genuine Price

2019 361 364.6 6,269,797

542,505 2018 [Unit: items, 100 million KRW] [Unit: items, 100 million [Unit: piece, person, 364.6 362 416.5 product Seized

2018 691,630 542,505 2017 351 744.9 416.5 584,094 2016 2017 691,630 378 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 976.5 1,197,662 2015 744.9 2016 584,094 976.5 2015 Counterfeit (Trademark Counterfeit Infringement) (Trademark Crackdowns by Special Judicial Police for Industrial Property in Last Five Years Five in Last Property Industrial Number of Cases and Value of Counterfeit Products Seized by the Special Judicial by Seized Products Counterfeit of Cases and Value Number of Police for Industrial Property in Last Five Years Years Five Last in Property Industrial for Police 1,197,662

Category Seized Product Seized Price of Genuine Price Criminally Charged 0 Moreover, Moreover, the KIPO has been operating the Counterfeit-Report Reward System since 2006 in According According to an analysis of counterfeit products seized by the Special Judicial Police for 3,000,000 2,000,000 1,000,000 7,000,000 6,000,000 5,000,000 4,000,000 of about 77 million KRW in 2019. * Source: KIPO * Source: The products. KIPO of distribution has counterfeit given order for to rewards eradicate reporting into Korea, into 3-2-2] [Figure Industrial Industrial Property, it has been found that products directly linked to the safety of citizens such as automobile wheels and cosmetics as well as products such detected consistently as clothes, bags, watches, and shoes are being widely distributed in the market. In addition to completed products, many counterfeit products in the form of half-finished products are being imported * Source: KIPO * Source: [Table 3-2-10] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-2-11] Rewards for Reporting Counterfeit Products in Last Five Years

Category 2015 2016 2017 2018 2019

Amount paid (million KRW) 103 103 103 120.5 77

Price of genuine goods (100 million KRW) 1,916 1,245 1,841 2,530 1,120 Outcome compared to the amount paid (times) 1,860 1,209 1,787 2,100 1,455 (Amount paid/Price of genuine goods)

* Source: KIPO

17) Local governments have recommended retailers to cease and make right illegal distributions and verified whether they accepted recommendations in the frequently infringing areas. Local governments also conduct joint crackdowns on counterfeit distributions with related authorities and trademark owners together.

As a result, a total of 2,424 cases of ordering recommendation and confirming correction were found in 2019 which was increased by about 2.62% from the previous year. Also, a total of 7,745 items were seized for infringing rights, an increase of about 18.95% from the previous year.

[Table 3-2-12] Crackdowns on Counterfeits by Local Government in Last Five Years [Unit: person, case, piece]

Category 2015 2016 2017 2018 2019

Recommendation 1,816 1,732 1,632 1,651 1,679

Compliance Verification 461 564 695 711 745

Items Detected 6,384 7,134 6,548 6,511 7,745

* Source: KOIPA

18) [Table 3-2-13] Support for Recommendation by Local Governments in 2019 [Unit: person, case, piece]

Number of Times Recommendation Compliance Local Governments Items Detected Supported Order Verification Incheon 9 91 31 711

Gyeonggi-do 40 351 170 1,800

Gangwon-do 10 77 15 398

Daejeon 9 85 72 289

17) Before receiving an order for corrective action, the business operator may stop violating relevant laws on its own or receive a corrective recommendation to perform obligations stipulated in the same law or other necessary measures for corrective action. If the business operator notifies the administrative agency that it has accepted the recommendation, it is treated the same as the order for corrective action was issued. 18) Since Seoul has a Judicial Police Unit for Public Welfare performing crackdown on its own, it is not included in the statistics.

72 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■

Gyeongsangnam-do 73 40 82 514 314 710 437 327 425 353 296 296 449 386 7,745 Gyeongsangbuk-do [Unit: case] 67 Ulsan 88 Items Detected Items Daegu - 112 52 43 43 28 55 12 63 77 25 25 34 745 Busan 113

Jeju 62 Verification Compliance

Jeollanam-do 128 93 82 62 12 67 83 88 94 141 113 112 128

1,679 Jeollabuk-do 94

Order Order Gwangju 93

Recommendation Chungcheongnam-do Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 83 8 2 7 5 7 4 8 7 7 6 10 10 149

141 Chungcheongbuk-do

12 Sejong Supported Supported Number of Times Number of 85 Daejeon

77 Gangwon-do in 2019 Government Local by Recommendations Correction of Status 351 Gyeonggi-do Jeju Total Ulsan Busan Daegu Sejong Gwangju 91 Jeollabuk-do Jeollanam-do Incheon Local Governments Local Gyeongsangbuk-do Gyeongsangnam-do 0 Chungcheongbuk-do Chungcheongbuk-do Chungcheongnam-do 50 400 350 300 250 200 150 100 * Source: KOIPA * Source: * Source: KOIPA * Source: 3-2-3] [Figure 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

B) Investigation and Correction Order of Suspension and Closure on Websites Distributing Online/Offline Counterfeit Products

The KIPO has constantly been collecting information about online distribution of counterfeit products. When an investigation reveals that counterfeit products are distributed through open markets, social media, and personal shopping malls, KIPO requests the online service providers or the Korea Communications Standards Commission to terminate the sale or close/take down the website.

The number of requests for online service providers to terminate the sale of counterfeit products has increased steadily each year. In 2019, the total number of requests for suspension of open market, social media, and internet portal sites was 7,662 cases, an increase of about 23.96% from the previous year. The total number of private online shop shut down due to such infringement was 340, an increase of 51.11% from the previous year.

In addition, 121,536 cases of evidence collection results and 386 trademarks were requested to stop selling to online service providers and trademark owners through the operation of a home monitoring group for counterfeit products, The resulting consumer damage prevention effect is estimated at 9,382 billion KRW.

[Table 3-2-14] Suspension/Closure of Illegal Websites for Online Distribution in Last Five Years [Unit: case]

Category 2015 2016 2017 2018 2019 Open market, SNS and portals, etc. 5,673 5,888 6,156 6,181 7,662 (Suspension) Private online shop (Closure) 418 368 191 225 340

Total 6,091 6,256 6,347 6,406 8,002

* Source: KOIPA

4) Control and Correction on False Marking of Intellectual Property Right

The KIPO has been operating IP rights False Marking Report Center to prevent consumers’ damages against false marking of patents, utility model rights, design right, and trademark rights and to correct harmful activities for the fair commercial trade order.

The number of cases reported to the IP rights False Marking Report Center is in an increasing

74 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 75 3,195 3,128 on an [Unit: case] 19) 2019 3,148 3,301 2018 Incorrect Making of Rights Incorrect 3,292 3,000 2017 2,625 2,068 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 2016 - 170 2015 Center Marking Report False IP Rights by Cases Received Masks on Fine Dust Rights Industrial Marking of False of Examples Category Reported Redressed 5) Inspection and Sanctions on Unfair International Trades Trades International on Unfair and Sanctions 5) Inspection The Korea Commission Trade (“KTC”) has the authority to issue a correction order If the business operator repeats the violation or fails to comply with the corrective action even after receiving a corrective action the action a violation or with even to comply corrective fails the receiving after If repeats corrective the business operator order, it may be subject to sanctions such as disposition of compulsory performance fees or imposition of fines. fees such as disposition of compulsory performance sanctions to it may be subject order,

The Korean Intellectual Property Office and the Ministry of Food and Drug Safety discovered a total of 1,125 cases as a result of a two-month intensive inspection of 169 online shopping malls as the use of fine dust blocking masks increased this year. By type, false marking of patents were the highest with 680 cases, and there were 437 cases of false/hype advertisements, and 8 cases of quality/label violation. Most of the cases of a false marking of industrial property rights that were found were cases in which the right number was extinguished due to the expiration of the period registration (450 cases) and the name of the right was incorrectly indicated (187 cases), such as marking the design as a patent. The Intellectual Property Office immediately corrected the contents of false advertisements online by ordering corrective measures such as deletion and suspension of sales of the detected false sales postings. IP rights infringer, including suspending import, export, sale, or manufacture of the goods, excluding restricted goods from entering the borders, and disposing restricted goods and 19) * Source: Medical World News(www. medicalworldnews.co.kr, July 4, 2019) World News(www. medicalworldnews.co.kr, Medical * Source: [Figure 3-2-4] [Figure * Source: KOIPA * Source: including Naver, to offer education programs and online/offline promotion projects to raise online sellers’awareness. 3-2-15] [Table trend. trend. In 2019, the cases of IP rights false marking reported to the Center were 3,195, and the KIPO provided corrective orders on 3,128 out of these cases. The KIPO and the Report Center consisted a cooperative system with open markets such as Interpark and Auction, social commerce enterprises, such as Ticket Monster and Coupang, and eight internet portals 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

impose a penalty surcharge on the relevant activities. In 2019, 13 cases of IP rights infringement were investigated, suggesting that an infringement of IP rights accounts for 100% of the total unfair trade activity investigations requests.

KTC has designated the Unfair Trade Activity Report Centers including the Trade related IP rights Protection Association, the Korea Intellectual Property Protection Agency (“KOIPA”), the Korean Apparel Industry Association, the Korea Toy Association, the Korea Culture Contents Licensing Association, and Korea Cosmetic Association for the voluntary monitoring of unfair trade practices in the export/import of IP rights infringing goods.

[Table 3-2-16] Application for Investigation on Unfair International Trades [Unit: case]

Category 2015 2016 2017 2018 2019

Trademark - 2 2 3 6

Patent 9 8 5 4 5

Utility model - - - - - IP Rights Design - 1 1 - - Infringement Copyright - - - 2 2

Trade secrets - 1 - - -

Subtotal 9 12 8 9 13 Infringement of Indication of the - - 1 1 - Origin False or Exaggerated Indication - - - - - Degradation of Import/Export - - - - - Environment Total 9 12 9 10 13

* Source: KTC

2. Copyright

1) Processing of Copyright Infringement Cases

The SPO received cases of infringing Copyright Act which accounts for about 65.52% of IP rights-related cases. In 2019, the number of cases received at the SPO for violation of the Copyright Act was 11,719, a decrease of about 15.23% from the previous year. Also, a total of 15,831 persons were arrested, which indicates a steady decrease since the peak in 2015. The

76 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 77 4,311 2,674 2,457 7,489 3,607 3,135 3,405 2,288 3,523 9.847 2,586 3,167 2,260 Other 2019 [Unit: person] case, person] [Unit : case, 8,443 10,317 13,756 39,995 15,186 11,529 45,467 19,806 Not 28,406 22,304 9,624 2,921 11,724 Indicted Indicted 2018 4.7 5.6 4.3 4.5 6.2 5.3 7.16 6.05 6.64 8.23 3,624 rate (%) rate 14,629 13,384 Indictment Indictment 2017 841 876 1,079 1,315 1,869 2,158 1,006 1,485 1,256 1,011 order Summary Processed 4,805 22,168 20,633 2016 95 82 99 83 68 64 117 111 202 100 Non Detained 7,619 39,920 38,376 Trial 2015 2 3 2 7 2 1 1 8 8 3 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Detained 52,141 26,142 18,637 24,309 45,573 11,664 15,831 13,820 18,392 33,393 total Case Indicted Processed Processed Arrested Arrested 11,719 51,931 45,426 26,113 24,280 13,824 33,461 16,006 18,677 18,356 Received Category Copyright Infringement Processed by the Korean National Police Agency in Last in Last Agency Police National Korean the by Processed Infringement Copyright Five Years Years Five Copyright Infringement Treated by Prosecutors’ Office in Last Five Years Five in Last Office Prosecutors’ by Treated Infringement Copyright

Case Case Case Case Case Person Person Person Person Person Copyright Act Act Copyright Category Infringement of Infringement For For the protection of copyright, the National Police Agency enforces the Copyright Act 2015 2016 2017 2018 2019 year. previous the from of 1.59%p increase 8.23%, an was rate indictment 3-2-17] [Table previous previous year, detecting 9,847 persons and indicting 2,674 persons. The number of copyright 2015. since has decreased cases infringement 3-2-18] [Table violations violations by conducting special crackdowns periodically. In 2019, the National Police Agency processed a total of 7,489 cases of infringing Copyright Act, a decrease of 22.18% from the * Source: Criminal Affairs Division, Ministry of Justice Criminal Affairs * Source: * Source: Investigation Department, Korean National Police Agency Police National Korean Department, Investigation * Source: 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Figure 3-2-5] Copyright Infringement Cases Reported by the Korean National Police Agency in Last Five Years [Unit: case] 45,000

40,000 38,376

35,000

30,000

25,000 20,633 20,000

15,000 13,384

10,000 9,624 7,489 5,000

0 2015 2016 2017 2018 2019

* Source: Investigation Department, Korean National Police Agency

2) Export/Import Restriction on Products Infringing Copyright

Most of the items seized by the Korea Customs Service for IP infringement are associated with trademark infringements, followed by items seized for copyright infringements. In 2019, Korea Customs Service seized a total of 21 cases of copyright infringement, an increase of 40.0% from the previous year. However, despite an increase in the number of items that violate copyright, the prices of copyright-infringing products, converted to the prices of the genuine products, totals about 4.3 billion KRW, a decrease of about 69.5% from the previous year.

[Table 3-2-19] Crackdown of Copyright Infringement in Last Five Years [Unit: case, 100 million KRW]

2015 2016 2017 2018 2019 Category Case Amount Case Amount Case Amount Case Amount Case Amount Copyright 17 25 12 128 29 84 15 141 21 43

* Source: KCS

The number of copyright-infringing items, held at the custom clearance by the Korea Customs Service, has been increasing since 2013. In 2018, there were 14 cases, a decrease of about 41.67% from the previous year, but in 2019, the number of cases went up to 25, which is an increase of about 78.57% from the previous year.

78 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■

79 25 [Unit: case] 2019

762 2019 20) . 」 14 2018 671 2018 24 2017 Act on Duties of the Judicial Police Officers on Duties of the Judicial Police Act 536 「 2017 19 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 2016 365 11 2016 2015 The Copyright Special Judicial Police has five regional offices in Seoul, has offices Busan, The five regional Copyright Special Judicial Police 21) Copyright Infringement Forwarded to the Supreme Prosecutors’Office by the Prosecutors’Office the Supreme to Forwarded Infringement Copyright Copyright Special Judicial Police during the Last Five Years Years Five during the Last Special Judicial Police Copyright 958 Years Five in Last Clearance Custom Held at Items Infringing Copyright

2015 Category Copyright 0 Each year, the Copyright Special Judicial Police conducts planned investigations in order to The Copyright Special Judicial Police in 2019 dispatched a total of 762 copyright violators to Since September 2008, the Ministry of Culture has been operating a Special Judicial Police for for a Special Judicial Police 2008, has the been Ministryoperating of Culture September Since 3) Online/Offline Control and Correction of Copyright Infringement Copyright of and Correction Control 3) Online/Offline Infringement on Copyright Investigation Scientific and Support for A) Investigation Limited to those items with suspended custom clearance in the custom clearance phase the after import report phase. Excludes in clearance the custom those to Limited with clearance items suspended custom 23. of the 26 and Article 6 Subparagraph Article 5 Subparagraph personal items (portable, parcel/mail, etc.). parcel/mail, (portable, items personal

800 600 400 200 1,200 1,000 20) 21) * Source: Ministry of Culture, Sports and Tourism Sports Ministry of Culture, * Source: cases. infringement new types of copyright to and be responsive for prepare the SPO, an increase of 13.56% from the previous year. year. the previous of 13.56% from the SPO, an increase 3-2-6] [Figure copyright issues. copyright piracy of copyright and investigation of crackdown Sejong, Gwangju, and is in charge and Daegu within the districts. [Table 3-2-20] [Table KCS * Source: 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-2-21] Planned Investigations by the Copyright Special Judicial Police in Last Five Years

Year Name Achievements Planned investigation on streaming 1H 10 operators investigated websites (10, iframe method) 2015 Planned investigations on streaming 2H Continues in the first half of 2016 websites (four, direct link) Planned investigations on link 1H Five operators investigated websites (four, direct link) Planned investigation on pirated character 2016 2H Five distributors investigated distributors (Online shopping mall, etc.) Planned investigation on illegal software Yearly 57 up-loaders investigated heavy unloaders Copyright infringing overseas websites Six operators investigated and dispatched 1H (eight websites) to prosecutors Six distributors and four sellers Planned investigation on pirated character 2H (Claw Machine) Investigated and dispatched 2017 distributors and sellers to prosecutors Planned investigation on illegal software Yearly heavy up-loaders 49 up-loaders investigated (Online storages heavy up-loaders) Planned investigation on pirated character Five distributors investigated and 1H distributors dispatched to prosecutors Planned investigation on overseas illegal 17 investigated and dispatched to 2018 websites prosecutors including 9 website operators Yearly Planned investigation on Online storages 70 up-loaders investigated heavy up-loaders Six investigated and dispatched to Copyright infringing overseas websites prosecutors including five website 1H (12 websites: four webtoons, one scanned operators (two indicted, four nolle prosse) 7 cartoon, seven torrent) investigations under way 2019 Copyright infringing overseas websites 2H Under investigation (six websites, two webtoons, four torrent) Planned investigation on Online storages Yearly 47 up-loaders investigated heavy up-loaders

* Source: Ministry of Culture, Sports and Tourism

22) Scientific investigation on digital copyright infringement refers to a series of processes to collect, convey, analyze, and report digital evidence according to the standardized procedures and methods that enable accomplishment of legal effects of evidence.

The Korea Copyright Protection Agency, or KCOPA, is an organization under the supervision of the Ministry of Culture that provides scientific investigation support for digital evidence

22) Digital Copyright Infringement Forensics.

80 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■

81 14 45 55 50 101 269 534 2019 [Unit: case] Agency Evidence S u b m i s s i o n t o 51 53 33 77 34 the Investigation the Investigation Report of Digital Digital Report of 487 239 Prosecution Service) Prosecution (Special Judicial Police, (Special Judicial Police, 2018 Investigation Agencies Investigation 17 37 32 19 22 313 440 the result 2017 Evidence procedure Analysis of Analysis of Transmission of of Transmission Request for support for Request the standardized the standardized Analysis of Digital of Analysis evidence based on based evidence 31 73 56 13 44 450 233 2016

KCOPA

59 59 50 30 119 127 444 T r a n s m i s s i o n o f Digital Evidence Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 2015 (Analysis of Digital Evidence Unit) Digital Evidence of (Analysis HQ warrant Seoul Busan Daegu Daegu Sejong Subtotal C o l l e c t i o n o f evidence via Gwangju C o l l e c t i o n o f Digital Evidence Support for Scientific Investigations on Infringing Digital Copyright in Last Five Five in Last Copyright on Infringing Digital Scientific Investigations Support for Years Years Category

Infringement Copyright on Digital Scientific Investigation for Procedures Phase Preparation Preparation Verification of of Verification The scope of scientific investigation on digital copyright infringement is generally widening infringement, etc. infringement, Ministry of Culture, Sports and Tourism and Sports system information, information, system copyright copyright infringement on 52 accounts, which consistently upload illegal reproduction with no online storage. to partnership 3-2-22] [Table of of Culture, in cooperation with the National Police Agency, moved servers overseas to avoid illegal distribute that sites on illegal planned and investigations supported crackdowns domestic copies. As a result, 20 major illegal copy distribution sites such as “Marumaru 2”and “Kidult. com”were shut down. Moreover, the Ministry proceeded with the scientific investigation of * Source: KCOPA * Source: and in 2019, there were a of total 553 cases of scientific In investigations. particular, the Ministry collection collection and analysis upon request from investigation organizations, such as the National and SPO. Agency Police 3-2-7] [Figure 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Category 2015 2016 2017 2018 2019 Supreme Prosecutors’ Office 3 - - - 1 Other 7 14 - 25 18 Total 454 464 440 512 553

* Source: KCOPA

In addition, the Ministry of Culture is able to transmit to the comprehensive IP rights response system, information that has been analyzed in real-time about the distribution status of illegal 23) reproduction per infringing media through the Illegal Content Obstruction Program (ICOP), which automatically monitors illegally distributed copyright materials online, based on auto search technologies, and thus use the transmitted information for scientific investigation of digital copyright infringement.

[Figure 3-2-8] Operation Procedures for Tracking/Management System of Illegal Reproductions

Auto searches in need for Online auto monitoring urgency materials Alerts to Control Tower

Tracking/ Emergency 24 hours/day Tracking/ Posted Management Link to the copyrighted crawling managing DB information System of Illegal Control Tower material DB Reproductions

* Source: The website of the KCOPA (www.kcopa.or.kr)

24) 25) ICOP is classified into ICOP-W and ICOP-T according to the type of site to be monitored. In 2019, the ICOP-W search program was upgraded, and the efficiency of the forensic investigations on digital copyright infringement was improved by developing the monitoring functions and improving detailed system functions of the unstructured website (overseas). This is a decrease of about 39.51% year-on-year, and the operation method was changed from the existing one- stage evidence collection (screen posting illegal copies) method to a three-level evidence collection (screen posting illegal copies → download screen → execution screen capture) method. Through ICOP (ICOP-T), 9,176 cases of illegal copies of torrent sites were detected.

23) Illegal Content Obstruction Program. 24) ICOP-Web. 25) ICOP-Torrent.

82 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ - - - 83 246 9,176 9,176 517,179 508,003 2019 [Unit: case] 5,701,823 2019 26) 56 244 53,854 185,512 53,854 2018 185,512 839,899 9,269,845 1,079,265 2018 56 244 189,604 562,454 2017 12,319,856 501,266 189,604 562,454 1,253,324 2017 66 167 433,249 418,539 2016 22,407,007 224,159 433,249 418,539 1,075,947 - - 2016 103 684,936 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 2015 - 50,539,321 684,963 348,280 1,033,243 2015 Torrent Website Websites Websites Collected Collected Websites Websites Collected Collected Websites Seed Files Collected Seed Files Collected Category Pirated File Distributed File Distributed Pirated File Distributed Pirated (ICOP-T) Reproduction on Illegal Analysis System Online Distribution Years Five in Last the ICOP of Monitoring of Achievements Online Storages (ICOP-T) Reproduction Online Illegal of Analysis System Distribution Total ICOP-T ICOP-W ‘Set’refers ‘Set’refers to the number of sites collected from the system while ‘case’refers to the number of seed files and illegally reproduced materials collected. The total number of seed files and pirated materials in each year refers to the accumulated sum the to accumulated refers in year number each of materials seed files The and total pirated collected. materials reproduced year. that up to Category Torrent

Streaming 26) * Source: KCOPA * Source: * Source: KCOPA * Source: 3-2-24] [Table [Table 3-2-23] [Table * Source: KCOPA * Source: 3-2-9] [Figure 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

B) Home-Monitoring on Online Illegal Reproduction

The Ministry of Culture has estalished a Continuous Response System managed by the KCOPA and has been operating the Online Illegal Reproductions Home-Monitoring in order to create jobs for the socially disadvantaged. In 2019, there were 340 home-monitoring agents.

The Home-monitoring project started with 30 disabled people in 2008, and in 2019, 250 agents made up of the disabled, women unable to continue her career, people from multi- cultural families, people of near poverty group, and young people. Also, in 2019, with the increase of copyright piracy activities through overseas internet web-sites, 90 young agents with high language proficiency were hired specifically to support blocking efforts of overseas websites.

[Table 3-2-25] Home-Monitors on Online Illegal Reproduction in Last Five Years [Unit: person]

Category 2015 2016 2017 2018 2019 Monitor 400 320 280 290 340

* Source: KCOPA

The monitoring agents have been doing surveillance on online storages, P2P, portals, Torrents and non-allowed streaming link sites targeting on illegal reproductions of music, video, publication, game, cartoon and software. The results of monitoring are used to provide corrective recommendation after they have been vetted by the Copyright Protection Deliberation Committee.

[Table 3-2-26] Home-Monitoring on Online Illegal Reproduction in Last Five Years [Unit: case]

Category 2015 2016 2017 2018 2019

Music 190,802 78,568 36,000 65,885 83,348

Video 1,711,713 1,859,982 462,682 1,134,558 1,004,024

Publication 35,300 11,449 29,239 46,062 11,337

Game 13,216 6,669 18,156 40,915 30,001

Comics 36,055 29,631 38,917 88,161 102,656

SW 50,000 15,882 16,859 33,088 25,213

Total 2,037,086 2,002,181 601,853 1,408,669 1,256,579

* Source: KCOPA

84 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ - 85 32 94 2,989 93,034 92,940 2019 item] [Unit : case, - 38 147 4,114 186,734 186,881 2018 - 144 5,045 1,344 569,012 567,668 2017 - 241 3,547 5,229 1,057,890 to review the case before ordering the production 1,054,343 2016 27) Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter - 292 6,605 3,283 1,501,766 1,508,371 2015 Video Music Game Subtotal Years Five Unit in Last Surveillance Silver by Crackdown Category Reports (case) Reports Crackdown (case) Crackdown (item) Under the Copyright Act, Article 103-3, which was newly enacted following the South Korea- 4) Correction and Disposing of Online/Offline Illegal Reproductions of and Disposing 4) Correction Illegal Reproductions Online of and Correction Request A) Information The unit is composed of senior citizens of at least 60 years of age who are tasked to report C) Operation of Silver Surveillance Unit for Offline Illegal Reproduction Offline Illegal Unit for Surveillance Silver of C) Operation has been managing the The Silver KCOPA Surveillance Unit 2012 since in order to strengthen Deliberations Deliberations on Articles 133-3 (Correction Recommendation) and 103-3 (Request for Information) of the 「Copyright Act」 are conducted by the Copyright Protection Deliberation Committee. Deliberation Protection the Copyright by conducted

Crackdown Crackdown 27) the right holder needs the information to file a lawsuit under the Civil or Criminal Act. The Minister of Culture may request the KCOPA information. of violator’s US US FTA, a right holder may request the Minister of Culture to order the online service provider to provide the information of the person who has made illegal copies and/or such transmitted copies, if the online service provider refuses to provide violator’s information , especially where * Source: KCOPA * Source: [Table 3-2-27] [Table discoveries of works discoveries illegal mainly In in areas. 2019, the the metropolitan of unit a reported total items. with 93,034 cases of 32 a total and seized reproduction of illegal 2,989 cases surveillance on clandestine or third-party sales of illegal works by street, traditional market, or the elderly. opportunities to employment provide and to vendors subway 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Figure 3-2-10] Procedures for Requesting Information on Reproducers/Transmitters Request for information on reproducers/Transmitters

3 Request for submitting information about reproducers/transmitters Provide information Request for review

1 7 4

Online service Ministry of Culture, Right holders provider Sports and Tourism KCOPA 2 6 5 Requests rejected Request for information Notice on review results

8 Information supply

* Source: KCOPA

In 2019, the KCOPA voted to provide information of 6,661 out of 8,254 accounts claimed, upon request from the Minister of Culture.

[Table 3-2-28] Review on Information Request for Illegal Reproducer28) and Transmitter by KCOPA (Copyright Protection Deliberation Committee) [Unit: times, case]

Category 2015 2016 2017 2018 2019 Reviews 12 11 22 21 16

Accounts 1,607 1,258 8,874 8,146 8,254

Approval 813 964 7,786 6,753 6,661 Review 28) results Rejection 794 294 1,088 1,393 1,593

* Source: KCOPA

The Ministry of Culture has been taking measures to correct on online distribution of illegal copies by ordering online service providers to delete or terminate transmission of such materials, issuing a warning against those who manufacture or transmit illegal reproductions, and suspending accounts of those who repeatedly transmit illegal materials online according to Article 133-3 of the Copyright Act. In 2019, the Ministry of Culture ordered corrections on 671,759 29) illegal online reproductions.

28) Reasons for rejections include impossibility of ascertaining OSP (Online Service Provider) account-related facts, insufficient explanation about rights, impossibility of ascertaining the dates of posting. 29) The KCOPA, which was launched on September 30, 2016, carries out the business relating to recommendations of correction, which used to be the responsibility of the Korea Copyright Commission, to have the copyright protection system-related business handled by a single channel.

86 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 87 238 238 326,607 344,914 671,759 344,914 326,607 Warning

[Unit : case] 2019 671,759 2019

252 571,416 276,230 294,934 2018 252 276,230 294,934 Deletion/Suspend

571,416 2018

235 291,574 263,034 554,843 2017 Ban account

235 263,034 291,574 554,843 2017 182 152,766 145,329 298,277 2016 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 182 145,329 152,766 68 298,277 2016 133,146 264,982 2015 Deletion/Suspend 68 131,768 133,146 264,982 2015 Years Five in the Last Reproduction on Illegal Corrections Years Five Last in the Reproduction on Illegal Corrections Total Warning 0 Category Account ban Account Taking a Taking look at the status of execution of ordering correction by distribution medium, the Deletion/Suspend 600,000 500,000 400,000 300,000 200,000 100,000 800,000 700,000 to to online distribution of illegal reproductions in the country worked effectively. However, the number of correction ordered made to sites, such as and Torrent, streaming sites decreased their moved serverssites the illegal after out of year the country avoid the the to from preceding crackdown. relevant relevant numbers are in the following order: 591,909 cases for online 79,846 storages, cases for portals, and four cases for other sites including The Torrent. rate of execution of corrected online service providers was 99%, which showed that steps taken to administrative put an end * Source: KCOPA * Source: * Source: KCOPA * Source: 3-2-11] [Figure [Table 3-2-29] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-2-30] Corrections on Illegal Reproduction Online in the Last Three Years [Unit: case]

Rate Category 2017 2018 2019 Increased Case Rate (%)

Websites of Online Storages 496,862 499,349 591,909 92,560 △ 18.54% △

P2P Websites 1,342 - - 1,342 △ 100% ▽ Portal Websites 55,300 70,952 79,846 8,894 △ 12.54%△ Other Websites 1,339 1,115 4 111,1 ▽ 99.64% ▽ (Torrent, streaming, etc.) Total 554,843 571,416 671,759 100,343 △ 17.56% △

* Source: KCOPA

B) Collection and Disposal of Offline Illegal Reproductions

The Ministry of Culture has consigned the duties to collect, dispose, and delete devices, information, programs manufactured to dismantle technical protection measures or 30) copyrighted materials, and illegal items infringing on copyright, to the KCOPA for execution.

31) In 2019, 707,746 items of illegal reproductions in 455 cases were collected and disposed. The number of pirated video/music products among the illegal materials collected and disposed has significantly declined since 2017 as use of reproductions is being diversified and users switched from CD/DVD formats of services to downloading digital files or streaming in offline illegal markets. In view of such changing environment, since 2019, the Ministry executed 32) a total of 2,746 cases of large scale preventive/advisor campaigns for small and medium size enterprises in conjunction with enforcement activities on pirated materials.

[Table 3-2-31] Collection and Disposal of Illegal Reproductions Online in Last Five Years

2015 2016 2017 2018 2019 Category Case Items Case Items Case Items Case Items Case Items

Music 996 14,420,282 920 7,678,109 575 4,066,941 186 1,402,744 136 698,967

Video 527 106,748 432 84,028 157 13,761 38 1,381 36 1,333

Publishing 510 16,697 456 21,443 503 34,980 302 15,545 261 6,694

30) The business of collection, discard, and deletion of illegal reproductions, which used to be the responsibility of the Korea Copyright Commission per the Copyright Act, Article 133, is now carried out by the KCOPA. 31) A “case”used as a unit of the number of sidewalk vendors, factories, etc. uncovered by the crackdown and an “item”refers to the number of illegal contents so uncovered. 32) There were 543 cases of MP3, 15 cases of videos, 2,039 cases of publications and 149 cases of character products.

88 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ - 89 747 141 2H 2,964 707,746 Items [Unit : case] 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 2019 2019 - 113 22 [Unit: case, items] [Unit: case, 455 1H 3,699 Case 707,746 - 455 2019 139 2H 5,949 18,265 Items 1,437,935 2018 2018 - 4 147 530 9,516 1H Case 1,437,935 530 - 2018 221 2H 37,165 25,700 Items 4,152,847 2017 2017 or Discarded Collected Items Reproductions of Illegal No. -

239 47 9,106 1H 4,152,847 1,282 Case

1,282 2017 - 135 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 3,913 2H 33,218 Items 7,816,798 2016 2016 284 - 1H 10 17,391 7,816,798 1,818 1,818 Case 2016 222 2H 4,277 208 and Discard Case of Collection

5,030 Items 2015 14,548,965 2015 237 14,548,965 Collection and Disposal Status of Illegal Reproductions (Offline) in Last Five Years Five (Offline) in Last Reproductions Illegal of Status and Disposal Collection 1H 2 2 in Universities Publishing Materials Pirated of Crackdown 12,058 2,037 2015 2,037 Case 0 Case Every March and September when a semester starts at universities, intensive crackdowns are Every at universities, crackdowns intensive March and when starts September a semester Total Game Quantity Category 500 products Category Character 3,000 2,500 2,000 1,000 5,000 4,500 4,000 3,500 * Source: KCOPA * Source: * Source: KCOPA * Source: [Table 3-2-32] [Table total of 254 cases were cited, which is about 11.19% decrease from the previous year. Reduction Reduction the previous year. from which is about cited, 11.19% of decrease were 254 cases total on the number of cited cases/items in 2019 may be attributed to the strengthened measures taken against illegal reproduction of textbooks through public-private cooperation with the publishing industry. * Source: KCOPA * Source: In institutions. 2019, teaching a and private stores, carried out on universities, photocopy nearby [Figure 3-2-12] [Figure 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

5) Inspection of Genuine Software Use

Under the Ministry of Culture, the Copyright Special Judicial Police performed on-site inspection on SMEs and public institutions to examine software use in order to prevent illegal software use and provide guidance. In 2019, there were 2,728 guidance cases on the use of software for SMEs.

[Table 3-2-33] Guidance for SMEs on Genuine SW Use by Ministry of Culture, Sports and Tourism in Last Five Years [Unit: number]

Category 2015 2016 2017 2018 2019

Companies 2,510 3,704 3,100 3,151 2,728

* Source: Ministry of Culture, Sports and Tourism

In addition, public institutions’ use of the software is being inspected under the Regulations for Software Management of Public Institutions, enacted in June of 2012. Since 2019, the software management and inspection method of public institutions has changed from the existing system centered on a crackdown to self-inspection and autonomous management system centered on preventive education. In the case of foreign countries, there are no cases of software inspection for public institutions, considering the possibility that the data from the crackdown on software of public institutions will be used as lawsuit data due to a request for information disclosure.

Every April to July, each public institution conducts self-investigation on the number of genuine, licensed software and the number of installed software and the result of the self- investigation is managed autonomously. The Ministry of Culture carries out an on-site inspection of the institutions that have failed to carry out the on-site investigation and institutions that have not participated in the precautionary training for the software manager for the last three years. In 2019, the Ministry of Culture responded self-inspection on the use of genuine software for 3,241 institutions, an increase of 15.75% from the previous year, and conducted on-site inspections on 200 of these institutions.

90 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 91 200 N/A On-site

inspection 33) 2019 [Unit: number] N/A 3,241 -gation Self investi 274 0.43 On-site inspection 2018 0.31 2,800 -gation Self investi 260 0.52 On-site inspection 2017 0.84 2,750 -gation Self investi 246 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 0.19 On-site inspection 2016 0.19 2,709 -gation Self investi 195 0.58 On-site inspection 2015 0.20

Tower Control Infringement the Copyright of Operation 2,682 Years Five in Last Agencies Public by Use Genuine Software of Inspection -gation Self investi 33) 6) Around-the-Clock Response System for Copyright Piracy Copyright for Response System 6) Around-the-Clock The Ministry of Culture and the opened KCOPA the Copyright Infringement Control Tower Due to the change in the investigation method, the 2019 infringement rate is not calculated. is not rate the 2019 infringement method, in the investigation the change Due to Category

Rate(%) Number of institutions Illegal copy Illegal [Table 3-2-34] [Table * Source: KCOPA * Source: 33) * Source: The website of KCOPA (www.kcopa.or.kr) of KCOPA The website * Source: detection and capability to take immediate measures against copyright piracy copyright by against implementing measures and immediate detection to capability take a 24 hour, 365day-response system. In 2019, the Ministry responded to the infringement by works. response of emergency the scope expanding 3-2-13] [Figure in November 2018 to secure golden time for response to copyright piracy through real-time 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-2-35] Main Functions of Copyright Infringement Control Tower

▹ Supports for automatic collection of public data-linked work information and use of copyright protection ▹ Integrated management of music, movies, broadcasting, publishing, games, cartoons, software infringement information and real-time analysis of frequent infringers ▹ Real-time supplies of copyright protection statistics between distinct systems separated from each other ▹ Provides a function to notify copyright holders of emergency copyright materials (killer contents)

* Source: The website of KCOPA (www.kcopa.or.kr)

[Figure 3-2-14] System of Urgent Piracy Preventing and Copyright Protection Integration of Emergency Infringement Response System Information

Comprehensive Movie/Game/ Work DB Deliberation 1 Response System Publishing /Comic/SW Information System for Copyright (Public data) Infringement

Tracking Info. on Copyright 2 Infringement Management 4 Copyright Company Detection Info. on Infringement System (ICOP-W) 3 Dissemination of Infringement 6

Distribution Information Analysis Analysis System Authenticity Experts 5 (ICOP-T) Check (Homeworkers)

Crackdown Statistics Guide on such as S/W Check Infringement Prevention Online Service Statistics Statistics Status Provider System (NIS)

Info. on Site Response + Investigation Support Geographic /Prevention Status Information System Procedures Copyright Police Info. on Overseas (GIS) Infringement Response

Integrated Computer Room of the Korea Copyright Protection Agency (Servers such as DBMS, dashboard, geographic information, system)

* Source: KCOPA

7) Copyright OK Designation System

The Copyright OK Designation System grants “Copyright OK” logos to those businesses that sell and distribute contents legally.

92 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 93 [Unit: number] Genre Videos, dramas Music, scores, MR Designated signboard Designated 4 18 2019

5 34) 15 2018 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 7 13 2017 Compliance and genuine distribution groups distribution and genuine Compliance 7 11 2016 (Mark) OK Logo Copyright OK Websites Copyright of Designation Existing logo Existing Video Music Category In 2019, a total of 251 businesses, including 65 online and 186 offline businesses, were Upon receipt of certification, online of and certification, Upon offline receipt businesses, OK which copyright have received The procedure for granting Copyright OK logos is based on the designation guideline. News was classified as Other until 2018. News was

34) businesses. 3-2-36] [Table OK designation project are verified. are project OK designation newly designated. As of the end of December 2019, the number total of businesses designated as Copyright OK includes 274 online and 1,227 offline businesses, reaching a total of 1,501 logos, logos, are provided with support to help raise brand awareness through external and internal as promotion soon as is Also, certification granted. after the designation, through re-evaluations of and fairness the transparency monitoring and Copyright committee, by evaluation consistent related related organizations and holding promotional events associated with designated companies. In addition, through the operation of the Open Consulting Center, counseling and consulting published which book was study and a case expanded, were infringement copyright services for of major cases. is a collection This guideline was prepared for those online and offline service providers interested in being designated as a Copyright OK provider. In 2019, activities to raise awareness of Copyright OK brands were strengthened, such as signing a Memorandum of Understanding (“MOU”) with * Source: The website of KCOPA (www.kcopa.or.kr) of KCOPA The website * Source: [Figure 3-2-15] [Figure 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Category 2016 2017 2018 2019 Genre

Publishing 18 18 18 18 E-book, web-novel

Comics 21 20 20 23 Comics, web-toon.

Education 36 39 31 33 E-learning materials 34) News - - - 44 News

B2B 3 9 14 32 Content B2B service

Mobile 41 49 47 64 Mobile apps

ETC 41 61 63 38 Public, DB, images 35) Total 178 216 213 274(65) -

* Source: KCOPA

35) [Table 3-2-37] Designation of Offline Sites with Copyright OK Logos [Unit: businesses]

Category 2016 2017 2018 2019 Music 44 45 62 66 Publishing 817 898 896 888 Character products - - - 269 36) Other 14 25 158 4 37) Total 875 968 1,116 1,227(186)

* Source: KCOPA

3. Trade Secret and Industrial Technology36)37)

1) Treatment on Infringement of Unfair Competition Prevention Act

With respect to violations of the Unfair Competition Prevention Act in 2019, a total of 484 cases were reported as leakage of trade secrets, which a decrease of one from the previous year and of which 8.4% were prosecuted. The indictment rate increased by 1.9% from the previous year. Also, 28 cases were reported as leakage of trade secrets from abroad, down 0.13% from 38) the previous year, of which 25% were prosecuted.

35) “()”indicates the number of newly designated online sites. 36) “Other”includes complex shops (religious goods, movie DVDs, books, etc.) and music score shops. 37) “()”indicates the number of newly designated online sites. 38) The number of penalties for violations of the 「Unfair Competition Prevention Act」 only for infringing trade secrets cannot be calculated separately, so the Ministry of Justice provides statistical data by dividing it into crimes such as violations of the Unfair Competition Prevention Act, leakage of trade secrets, and leakage of trade secrets abroad based on the crime name ([Table 3-2- 38], [Table 3-2-39]). Among the cases reported for violating the Unfair Competition Prevention Act, not only figures related to the infringement of trade secrets but also figures related to unfair competition activities are included, so the related statistics are not presented in this report.

94 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 95 7 7 3 3 6 9 17 45 20 86 15 114 118 146 248 139 349 338 409 440 Other Other 8 2 9 2 9 7 17 11 12 33 191 201 201 421 472 457 185 530 588 234 Not Not Indicted Indicted 7.4 5.7 9.3 8.6 6.9 8.4 8.9 6.5 8.7 17.1 14.6 47.8 16.1 24.3 52.0 50.0 25.0 22.9 13.3 54.5 rate (%) rate rate (%) rate Indictment Indictment ------6 8 6 6 8 9 1 4 1 1 16 18 28 15 order order Summary Summary Treatment Treatment 3 6 4 6 3 2 2 51 20 21 55 62 15 38 58 22 94 14 10 10 Non Non Detained Detained Trial Trial ------6 3 3 4 4 4 2 2 6 8 1 1 3 11 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Detained Detained 37 11 93 18 20 15 23 46 25 48 911 324 381 837 403 980 882 333 346 1,057 in total in total Treatment Treatment 61 21 28 32 36 36 15 15 38 84 376 912 318 947 977 362 336 832 772 335 Received Received National Police Agency’s Treatments of Infringement on Unfair Competition Competition on Unfair Infringement of Treatments Agency’s Police National Treatment of Infringement on Unfair Competition Prevention Act (crimes such as (crimes Act Prevention Competition on Unfair Infringement of Treatment Prevention Act (crimes such as leakage of trade secrets from abroad) in the Last in the Last abroad) from secrets trade of such as leakage (crimes Act Prevention Years Five leakage of trade secrets) by the Supreme Prosecutors’Office in the Last Five Years Five in the Last Prosecutors’Office Supreme the by secrets) trade of leakage

Case Case Case Case Case Case Case Case Case Case Person Person Person Person Person Person Person Person Person Person Category Category 2019 2017 2018 2015 2016 2019 2017 2018 2015 2016 * Source: Criminal Affairs Division, Ministry of Justice Criminal Affairs * Source: * Source: Criminal Affairs Division, Ministry of Justice Criminal Affairs * Source: 3-2-39] [Table [Table 3-2-38] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

In 2019, the National Police Agency processed a total of 493 cases related to infringement of the Unfair Competition Prevention Act, a decrease of 10.69% from the previous year, making 39) 1,138 arrests, of which 495 were prosecuted.

[Table 3-2-40] National Police Agency’s Treatments of Infringement on Unfair Competition Prevention Act in Last Five Years [Unit : case, person]

Category 2015 2016 2017 2018 2019

Infringement Detected cases 413 502 419 552 493 on Unfair Apprehended 997 1,166 1,002 1,176 1,138 Competition Prevention Act Prosecuted 449 462 427 511 495

* Source: Investigation Department, Korean National Police Agency

[Figure 3-2-16] Number of Infringement on Unfair Competition Prevention Act Investigated by the Korean National Police Agency in Last Five Years [Unit: case]

600 552 502 500 493 413 419 400

300

200

100

0 2015 2016 2017 2018 2019

* Source: Korean National Policy Agency Investigation Division

2) Handling of the Prevention of Leakage and Protection of Industrial Technology Act Violations

Although the number of cases in violation of the Industrial Technology Prevention Act that the Prosecutors’ Office handles is increasing steadily, a total of 21 cases were reported in 2018, a decrease of 46.15% from the previous year, and the indictment rate was 43.47%.

39) It includes unfair competition behaviors as well as infringement of trade secrets such as leakage of trade secrets and leakage from abroad ([Table 3-2-40]).

96 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 97 9 1 4 3 5 17 24 11 62 23 Other 3 4 2 1 4 8 14 21 12 34 Not Indicted 57.1 24.1 66.7 26.9 65.4 25.0 26.73 43.47 32.55 33.33 rate (%) rate Indictment - - - - 1 2 2 4 1 1 order Summary Processed 5 6 2 2 7 3 16 10 18 19 Non Detained Trial - - 1 1 3 3 4 7 4 9 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Detained 7 24 26 26 12 86 30 58 23 101 total Processed Processed 9 16 24 24 71 37 21 39 53 127 Received Prosecutors’ Office’s Handling of Violations of Unfair Competition Prevention Act Prevention Competition of Unfair of Violations Handling Office’s Prosecutors’ in Last Five Years Five in Last

Case Case Case Case Case Person Person Person Person Person Category To To prevent unfair technology infringement on subcontract trades, the FTC installed 3) Inspection and Restriction of Technology Misappropriation by Authorities by Misappropriation Technology of and Restriction 3) Inspection 2019 2017 2018 2015 2016 of efforts to reduce the activities of technology infringement in the future. In 2019, the electrical surveillance. be under intense to selected industry was and electronics In November 2018, it officially implemented a new Technology Misappropriation Surveillance Unit which oversees types of businesses with high suspicion of violating the law under intense surveillance and exercises the right to through investigate official authority. In 2019, the Unit restricted two cases of technology misappropriation and disclosed to the press media as part the Technology Misappropriation task force solely responsible for handling technology misappropriation cases to according the technology misappropriation plan in September 2017. * Source: Criminal Affairs Division, Ministry of Justice Criminal Affairs * Source: [Table 3-2-41] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-2-42] Restrictions on Technology Misappropriation in 2019

Business under Case Act of Technology Infringement Restriction Details Restriction ▹ Hyundai It transferred technical data such as drawings of ▹ Correction Construction subcontractors to other companies to investigate the ▹ Fine of 431 million KRW 1 Equipment Co., Ltd. possibility of delivery and used them to get a delivery Reporting the corporation Hyundai Heavy quotation to lower the supply price of construction and directors to the Industries Group equipment parts such as excavators Prosecutor’s Office ▹ ▹ Correction It received a drawing with a list of screen printer-related ▹ Fine of 382 million KRW 2 Hanwha Group parts from subcontractor A and developed and shipped Reporting the corporation them to the customer without notifying Company A and directors to the Prosecutor’s Office

* Source: Fair Trade Commission

4) Inspection and Correction of Unfair Competition

In 2018, the KIPO established Unfair Competition Report Center to prevent unfair activities and control any third party from gaining illegal profits from others’credit or use of unfair measures against the fair trade customs, by which healthy trade order can be promoted and protect profits of consumers and business owners.

The investigator in charge investigates and provides corrective measures on all the unfair · competition activities including confusion of product sellers, misunderstanding of origin sourceㆍ quality, imitation of other product shapes, and thefts of ideas with economic value. In 2019, a total of 66 cases were handled, including five recommendations for correction and 19 self-corrections.

[Table 3-2-43] Handling of Investigation and Correction on Unfair Competition Activities in the Last Three Years [Unit: case]

Category Correction Self-correction Canceled Other Addressed

2017 1 - - - 1

2018 6 22 15 20 63

2019 5 19 13 29 66

* Source: KOIPA

5) Operation of Administrative Investigation System for Technology Infringement of SMEs

In December 2018, through the revision of the Support for the Protection of SMEs Technology

98 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 99 3 9 5 6 17 61 21 39 11 55 Other 2 7 5 9 17 17 10 15 48 34 Not Indicted 16.7 18.9 15.8 12.5 23.8 33.3 24.32 11.20 21.95 12.84 rate (%) rate Indictment 8 1 3 3 3 6 7 8 13 12 order Summary Processed - - 1 1 1 1 2 2 1 1 Non Detained Trial ------Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Detained 6 41 37 37 21 19 15 64 116 109 total Processed Processed 24 42 11 20 39 12 68 34 108 112 Received Processing of the New Varieties of Plants Protection Act Violations by the SPO in by Violations Act Protection Plants of Varieties the New of Processing Last Five Years Five Last

Case Case Case Case Case Person Person Person Person Person Category The number of cases related to violations of the New Varieties of Plants Protection Act the 1) Handling of the New Varieties of Plants Protection Act Violations Act Protection Plants of Varieties the New 1) Handling of 2019 2017 2018 2015 2016 * Source: Criminal Affairs Division, Ministry of Justice Criminal Affairs * Source: SPO received in 2019 were 34 cases, a decrease of 12.82% from the previous year, but 116 year. the previous of 6.42% from made, an increase were arrests 3-2-44] [Table 4. New Varieties of Plants and Others Plants of Varieties 4. New the determination of technology infringement during the administrative investigation process. Until November of the same year, a technical infringement investigation team, comprised of technology to of infringement cases relating SMEs. Through this in experts the field, investigated and handled in 2019. reported were of 16 cases a total efforts, team’s Act, Act, the Ministry of SMEs introduced an administrative investigation system that demands fact-finding, correction recommendations, and public announcements on SME technology . In of June professors, 2019, a advisorytechnologyinfringements infringement consisting group on advise to established was IP judges current and and former judges, lawyers, attorneys, patent 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

2) Crackdown and Handling of Illegal or Defective Forest Varieties

The Korea Forest Service has strengthened crack down on the distribution of defective forest varieties and taken administrative actions including enforcing judicial action and imposing fines upon discovery of violations in order to eliminate the use of illegal or defective varieties. Since July 2019, the Korea Forest Service has strengthened real-time surveillance so as to eradicate illegal distribution of forest seeds through domestic internet websites and blogs. The Korea Forest Service detected 41 violations, including 36 distribution crackdowns in 2019.

[Table 3-2-45] Handling of Infringement on New Varieties of Plants Protection Act and Seed Industry Act by the Korea Forest Service in Last Five Years [Unit: case]

Category 2015 2016 2017 2018 2019

Crackdown on Distribution 18 27 31 34 36

Seed Industry Act - 7 22 10 9 Addressed Infringing Varieties - - 5 - 2 Protection Right

Reports 4 5 4 5 - Infringement Case Fine 2 - 7 9 4

Warning(Doc) - - 30 19 11

Guidance(Verbal) 24 33 52 22 15

Subtotal 30 45 120 65 41

* Source: National Forest Varieties Management Center

[Figure 3-2-17] Inspection on Distribution of Varieties in Plant Market in 2019

* Source: Korea Forest Service website (www.forest.go.kr)

Meanwhile, in 2019, the Korea Forest Service received a total of 183 cases of production/

100 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 101 30 183 1,776 [Unit: case] [Unit: case] 2019 2019 340 1,701 12 2018 2018 324 1,562 2017 29 2017 129 1,708 2016 1 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 154 2016 1,443 2015 2 2015 Infringement on Varieties Protection Right of Ministry of Agriculture, Food and Food Agriculture, of Ministry Right of Protection on Varieties Infringement ImportㆍProductionㆍSales and Approval of Varieties by the Korea Forest Service Service Forest Korea the by Varieties of and Approval ImportㆍProductionㆍSales Rural Affairs in Last Five Years Five in Last Affairs Rural in Last Five Years Years Five in Last

Category to import seeds to Case Approval of conditions Approval Category In addition, the Ministry of Agriculture and the Ministry of Oceans are working together to 3) Inspection on Infringement of Varieties Protection Right Protection Varieties of on Infringement 3) Inspection Service, which is supervised formed Variety Seed and the Ministry by of Agriculture, The Korea Report on productionㆍ import on productionㆍ Report unauthorized distribution of varieties protected varieties. protected of varieties distribution unauthorized of distribution of seeds, and in 2019 developed DNA markers for 31 species. The Ministry of Oceans has developed and applied a marker for structural mutation of the nuclear gene (18S the Kjellman and genes of analyzed the dentata species rDNA) applied of for the Porphyra laver, built a gene DB and analyzed the DNA of the distribution seeds of aquatic plants to prevent develop markers to resolve disputes in the event of infringement on the right to protect varieties. varieties. protect on the right to in the event of infringement disputes resolve to develop markers The Ministry of Agriculture is developing a cultivar identification technology using molecular markers to protect the rights of cultivar cultivars application/registered and establish the order * Source: Korea Seed and Variety Service Seed and Variety Korea * Source: total total of 30 cases of infringing Varieties Protection Right was found (29 forwarded, one under investigation), of which 16 for rice, six for potatoes, one for peach, and one for phalaenopsis (under investigation). 3-2-47] [Table the Special Judicial Police to resolve matters regarding Varieties Protection Right. In 2019, a * Source: Forest Office Forest * Source: import/sales of new varieties and approved a total of 1,776 cases of conditions to import seeds. to of conditions of 1,776 cases a total and approved of newimport/sales varieties 3-2-46] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Figure 3-2-18] Response System for Infringement of Varieties Protection Right Marker Distribution Analysis and Information Data Development Survey Evaluation Collection Establishment

Collection of Establishment Variety Sample Marker Genetic of Information Identification Collection Utilization Information for System for Each Variety Collected Data

* Source: the Ministry of Agriculture, Food, and Rural Affairs

102 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 103 412 167 3,947 4,482 [Unit: case] 2019 478 207 4,876 4,590 2018 241 422 5,798 4,216 2017 512 306 6,796 4,346 2016 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 477 252 4,145 9,112 2015 Intellectual Property Dispute Dispute Property Intellectual Resolution Requests for Review of the Industrial Property Right in Last Five Years Years Five Right in Last Property the Industrial of Review for Requests Patent Patent Design Category Trademark Utility Model A) Trial and Litigation for Cancellation of Trial Decisions Trial of Cancellation for and Litigation A) Trial property industrial of review for requests 9,008 received Board Appeal and Trial IP the 2019, In 1) Trial and Litigation on Industrial Property Right Right Property on Industrial and Litigation 1) Trial In the event of an infringement of industrial property rights, such as patent rights and trade requests for patent review has been decreasing since 2015. since reviewdecreasing has been patent for requests 3-3-1] [Table rights rights related cases which is a decrease of 12.69% from the previous year. The number of 1. Trial and Litigation 1. Trial the number of mediation applications for these issues is increasing every year. Furthermore, in order to prevent or deal with intellectual property related disputes, the Korean government servicesper each type centers provides consultation of IP right, which offers a of variety services support. costs and litigation consulting, strategy review, response such as legal and inexpensively through an alternative dispute resolution (ADR), such as mediation and arbitration, and not in the form of a lawsuit. To this end, there are institutions that provide ADR such as the Industrial Property Rights Dispute Mediation Committee, Copyright Dispute Mediation Department, and SME Dispute Technical Mediation and Arbitration Committee, and secrets, secrets, and copyrights, the right holder can use civil remedies such as a claim for damages or injunction on infringement, as well as seek criminal sanctions the against infringer. It is possible to resolve disputes to related IP rights through an agreement between the parties more quickly Section 3. Section 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Category 2015 2016 2017 2018 2019

Total 13,986 11,960 10,677 10,151 9,008 「」 * Source: Intellectual Property Tribunal, Key Judgment Statistics for December 2019

The ratio of appeals seeking cancellation on decisions of the Intellectual Property Trial and Appeal Board to the Patent Court has been decreasing gradually, and in 2019, the appeals rate was 9.4%, a decrease of 2.3%p from the previous year. The rate of the Patent Court overturning the decision by the Intellectual Property Trial and Appeal Board in 2019 was 25.6%, an increase of 3.4% from the previous year

In 2019, there were 220 cases seeking review by the Supreme Court on the Patent Court’s decisions, which was a decrease of 12.0% from the previous year. The percentage of cases overturned by the Supreme Court was 5.0% in 2019, a decrease of 2.2%p from the previous year.

[Table 3-3-2] Number of Lawsuits filed Patent Court and Supreme Court in Last Five Years to Overturn the Lower Court’s Decision [Unit: case]

Category 2015 2016 2017 2018 2019 Decision 6,347 6,417 7,389 7,473 8,992 Appeal 873 987 859 877 841

Patent Litigation Rate (%) 13.8 15.4 11.6 11.7 9.4 court Judgment 817 889 971 887 798 Annulment 198 255 244 197 204 Annulment Rate (%) 24.2 25.3 25.1 22.2 25.6 Appeal 240 319 323 250 220

Supreme Judgment 257 278 297 276 242 court Reverse 17 12 11 20 12 Reverse Rate (%) 6.6 4.3 3.7 7.2 5.0 「」 * Source: KOIPA, 2018 IP Whitepaper

B) Claims for Injunction against Infringement (Lawsuits on Merit)

The number of claims seeking injunction against patent infringement (main agenda for civil 40) lawsuits ) was 102, an increase of 45.71% from the previous year, and of which 69 cases were

40) The decision on this agenda is the final decision on whether the plaintiffs claim is based on the actual grounds or whether the claims for appeal to the higher court by denying loss is on the actual grounds.

104 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 105 (%) 543 30.00 25.00 20.00 15.00 10.00 5.00 0.00 313.7 499.9 303.6 605.5 Days to Days to Process Average Win Rate

79 69 82 68 69 119 day] [Unit : case, Total

16.67 2019 8 1 3 16 32 102 Handled Others Others

- 6 2 8 1

Transfer 68 - - - - 1 Requested 2018

19.30 nition Recog- 70 5 1 5 7 5 liation Conci- 41) - 3 6 3 3 82 tion Media- Processed 2017 28.13 14 31 20 28 12 70 With- drawal Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter - 2 1 1 1 tion Rejec- 119 8 28 33 35 25 2016 20.27 -ssal ssion Dismi Permi- 128 5 9 9 10 10 ssion Partial Permi- 4 5 8 1 1 79 ssion Status of Civil Litigation on Merits (District Court) for Injunction against Patent Patent against Injunction Court) for (District on Merits Civil Litigation of Status Infringement in Last Five Years Five in Last Infringement Permi-

Status of Civil Litigation on Merits (District Court) for Injunction against Patent Patent against Injunction for Court) (District on Merits Civil Litigation of Status Infringement in Last Five Years Five in Last Infringement

19.15 2015 70 70 102 108 128 108 Re- ceived The number of claims of utility for injunctions model is infringement much lower than claims Permission Permission rate = (Permission + Partial permission + Recognition)/(Permission + Partial permission + Recognition + Dismissal + Rejection + Withdrawal). Rejection 0

80 60 40 20 Year 2018 2019 2015 2016 2017 140 120 100 (case) [Table 3-3-3] [Table handled, an increase of 1.47% from the previous year. In 2018, the average number of days required to handle civil cases in relation to infringement patent injection claims was 605.5 days, increased about 63 days from the previous year. The rate of patent right holders’success was and conciliation. transfer, mediation, 16.67%, excluding of other IP rights. In 2019, there were three claims, down 25% from the previous year, and the 41) * Source: National Court Administration National * Source: * Source: National Court Administration National * Source: 3-3-1] [Figure 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

number of cases processed was one, same as the previous year. The average number of days expended to handle injunction claims related to utility model patent infringement in the district court, has been decreasing steadily since 2017, was 43 days, which decreased by about 110 days compared to the previous year.

[Table 3-3-4] Status of Civil Litigation on Merits (District Court) for injunction against Utility Model Right Infringement in Last Five Years [Unit: case, day]

Processed Average Re- Partial Year Permi- Dis- Rejec- With- Media Conci- Recog- Days to ceived Permi- Transfer Others Total ssion missal tion drawal -tion liation nition Process ssion 2015 6 - - 2 ------2 4 199.5

2016 18 - 2 1 - 4 - - - 3 5 15 157.3

2017 2 - - 5 - 2 - 1 - - - 8 350.1

2018 4 - - - - 1 - - - - - 1 153

2019 3 - - - - 1 - - - - - 1 43.0

* Source: National Court Administration

[Figure 3-3-2] Civil Litigation on Merits (District Court) for Injunction against Utility Model Right Infringement in Last Five Years (case) (%) 20 28.57 30.00 18 18 25.00 16 15 14 20.00 12 10 15.00 8 8 6 6 10.00 4 4 4 3 2 5.00 2 1 1 0 0.00 2015 2016 2017 2018 2019

* Source: National Court Administration Requested Handled Win Rate

The number of claims seeking injunction against design patent infringement were 27 in 2019, an increase of 42.11% from the previous year, of which 19 of them were processed, an increase of about 72.73% from the previous year. The average number of days used to handle injunction claims related to design patent infringement in the district court was about 201.8

106 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 107 (%) 372 60.00 50.00 40.00 30.00 20.00 10.00 0 149.2 201.8 311.3 238.4 Days to Days to Process Average Win Rate

11 19 30 22 25 [Unit: day] case, 19 Total

0.00 2019 - 3 3 1 10 27 Handled

Others

- - - 3 1 Transfer 11 - - - - - Requested

2018 44.44 nition Recog- 17 - 2 2 5 1 liation Conci- 1 1 3 1 1 30 -tion Media Processed 2017 8 4 4 6 3 40.91 18 With- Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter drawal - - - - - tion Rejec- 25 9 1 7 2 5 Dis- 50.00 2016 missal 37 - 1 3 6 4 ssion Partial Permi- Permi- - - 1 2 3 Status of Civil Litigation on Merits (District Court) for Injunction against Design against Injunction Court) for (District on Merits Civil Litigation of Status Patent Right Infringement in Last Five Years Five in Last Right Infringement Patent 22 ssion Permi- Permi-

Civil Litigation on Merits (District Court) for Injunction against Design Patent Design Patent against Injunction for Court) (District on Merits Civil Litigation Infringement in Last Five Years Years Five in Last Infringement

2015 13.33 17 16 27 37 18 Re- 16 ceived The number of claims seeking injunction against trademark infringement reported has been 5 0 Year 2015 2017 2018 2019 2016 30 25 20 15 10 40 35 (case) 2019 was 267.1 day, an of increase about 27 days from by the of previous success The year. rate and conciliation. transfer, mediation, excluding 33.33%, was right holders trademark increasing increasing since 2017. In 2019, there were 69 cases, an increase of 32.69% from the previous year, of which 55 cases were handled, an increase of 34.15% from the previous year. The in court district the by claims injunction trademark the process to spent days of number average * Source: National Court Administration National * Source: [Figure 3-3-3] [Figure * Source: National Court Administration National * Source: days, decreased by about 170 days from the previous year. year. the previous from about 170 days by days, decreased 3-3-5] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-3-6] Status of Civil Litigation on Merits (District Court) for Injunction against Trademark Infringement in Last Five Years [Unit: case, day]

2016 74 6 6 7 3 12 7 4 - 3 13 61 220.3

2017 39 12 13 11 - 7 4 5 - 2 2 56 299.0

2018 52 3 6 7 1 6 10 7 - 1 - 41 240

2019 69 5 7 8 1 15 3 10 - 3 3 55 267.1

* Source: National Court Administration

[Figure 3-3-4] Status of Civil Litigation on Merits (District Court) for Injunction against Trademark Infringement in Last Five Years (case) (%) 80 74 70.00 58.14 69 70 60.00 50.00 61 60 56 55 52 52 50.00 50 39.13 43 35.29 39 41 33.33 40.00 40 30.00 30 20.00 20 10 10.00 0 0 2015 2016 2017 2018 2019

* Source: National Court Administration Requested Handled Win Rate

C) Injunction against Infringement (Provisional Disposition)

42) In order to effectively protect IP rights, provisional disposition must function well. In 2019, a total of 59 provisional dispositions for injunction against infringement industrial property right were submitted, a decrease of about 3.28% from the previous year, and a total of 61 cases were processed, an increase of about 10.91% from the previous year. The approval rate of injunction 43) claims was 11.48%, a decrease of 4.88% from the previous year, which was 16.36%. The

42) An injunction claim is a temporary command issued by a court to preserve execution of the claim rights beside the financial bonds, or to define the temporary standing of the rights relationships dealt with. 43) Permission rate of injunction claims = (permitted cases) / (Total cases).

108 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 109 99 120 50.0 167.9 163.7 148.7 101.8 163.8 132.6 250.5 Days to Days to Days to Days to Process Process Average Average [Unit: day] case, [Unit: day] case, 6 1 2 76 61 70 10 55 65 13 Total Total 4 1 2 1 2 24 26 32 19 23 Others Others - - 1 5 45 11 32 29 22 22 Processed Processed Dismissal Dismissal Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter - - 7 9 1 3 1 10 12 15 Permission Permission 6 1 8 2 61 10 59 56 67 64 Received Received Treatment of Treatment Provisional Disposition for Injunction against Infringement on Utility Treatment of Treatment Provisional Disposition for Injunction against Infringement Patent in Model in Last Five Years Years Five Model in Last Last Five Years Five Last

Year Year 2018 2019 2016 2017 2015 2017 2018 2019 2015 2016 In 2019, a total of 35 claims seeking injunction against design patent infringement were In 2019, a of total one claim seeking injunction utility against model infringement was patent an increase of 32.14% from the previous year. The was 21.62%, rate approval which is similar to the previous year’s approval rate of 21.43%. The average number of days expended to the infringement process injunction design claims patent was 99.2 days, by increased 39 days * Source: National Court Administration National * Source: processed, were of 37 cases and a total year, the previous of 9.38% from an increase reported, [Table 3-3-8] [Table handled. The average number handled. of The days average it handle to took a claim utility seeking injunction against year. the previous of 49 days from 50 days, a decrease was infringement model patent * Source: National Court Administration National * Source: average number of days expended to process provisional injunction against patent infringement infringement patent against injunction provisional process to expended of days number average year. the previous of 44 days from days, an increase 163.7 was 3-3-7] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

from the previous year.

[Table 3-3-9] Handling of Provisional disposition for injunction against infringement on Design Patent in Last Five Years [Unit: case, day]

Processed Average Year Received Days to Permission Dismissal Others Total Process 2015 33 10 16 7 33 111.4 2016 43 12 17 17 46 72.0 2017 28 7 14 9 30 134.1 2018 32 6 8 14 28 60 2019 35 8 7 22 37 99.2

* Source: National Court Administration

In 2019, a total of 63 claims seeking injunction against trademark infringement were reported, an increase of 65.79% from the previous year, and a total of 42 cases were processed, an increase of 26.19% from the previous year. The approval rate was 16.98%, a decrease of 30.95% from the previous year. The average number of days expended to process the trademark infringement injunction claims was 94.6 days, an increase of about five days from the previous year.

[Table 3-3-10] Treatment of Provisional Disposition for Injunction against Infringement on Trademark in Last Five Years [Unit: case, day]

Processed Average Year Received Days to Permission Dismissal Others Total Process 2015 61 14 26 19 59 103.4

2016 45 16 23 18 57 86.0

2017 59 9 18 22 49 80.6

2018 38 13 12 17 42 90

2019 63 9 16 28 53 94.6

* Source: National Court Administration

110 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ a 47) 111 45) 174.7 197.1 186.7 192.0 Days to Days to Process 215.2 Average [Unit: day] case, 852 Total 1,796 1,697 1,492 1,280 of IP right, 44) 24 19 30 25 109 Others 41 69 60 46 105 Transfer - - - - 1 nition Recog- 71 58 173 265 300 liation Conci- 73 98 105 155 194 -tion Media 2 10 21 28 29

tion Recom- menda- Processed 46) . Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 519 375 351 456 532 With- drawal

5 16 43 19 33 47) tion Rejec- 76 87 89 66 44 Dis- missal 517 431 351 156 445 ssion Partial Permi- 74 81 89 46 Civil Litigation for Compensation against Infringement of Industrial Property Right Right Property Industrial of Infringement against Compensation for Civil Litigation in Last Five Years Five in Last 105

ssion Permi- 805 Re- 1,755 1,811 1,066 ceived 1,384 D) Claim for Compensation (Lawsuits on Merit) (Lawsuits Compensation D) Claim for In 2019, there were 805 compensation lawsuits filedagainst infringement Success Success of litigation rate = (Permission + Partial permission + Recognition)/(Permission + Partial permission + Recognition + Average no. of days for treatment = no. (Total of damage compensation (IP) cases treated * Average period to treat damage It means to transfer the damage inflicted on others by an illegal act and return it to the original state. it to and return act an illegal by on others inflicted the damage transfer to It means As Classification of case name indication for cases of for compensation damages Rule (Trial No. 10644) came into on force April in this statistical data does not include figures related to damages for infringement of trade secrets. of trade infringement for damages to related include figures does not data in this statistical + Withdrawal). Dismissal + Rejection compensation(IP)) + no. (Total of damage compensation (copyright) cases treated * Average period to treat damage (copyright) compensation no. of damage + Total treated (IP) cases compensation no. of damage / (Total compensation(copyright) treated). cases 1, 2017, the case for claiming compensation for damages caused by copyright infringement other than the program copyright was excluded from the case of compensation for damages (IP) and the case name “Compensation for Damages (copyright)” was newly established, indicating “a case for claiming damages due to infringement of copyrights other than the program copyright”excluding the case of ‘a claim for damages caused by infringement of copyright other than the program copyright. From 2018, data statistical has been managed by categorizing damages for IP infringement and damages for copyright infringement. However, since this was not distinguished before 2017, data for 2018 and 2019 are provided by The “IP term five rights” the years. for last combining data the unity for (IP) in statistical damages for and providing figures (copyright) damages

Year 2015 2016 2017 2018 2019 court court in 2019, excluding mediation, conciliation, transfer, were 31.38%, a decrease of about of 43.68% year the previous 12.3p% from 3-3-11] [Table decrease of about decrease 24.28% the from and previous a year, 852 decrease claims processed, were of 21.11% from the previous year. The approval rate of compensation claims in the district * Source: National Court Administration National * Source: 46) 47) 44) 45) 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Figure 3-3-5] Status of Civil Litigation for Compensation against Infringement on Intellectual Property Right in Last Five Years (case) (%)

2,000 54.84 60.00 1,811 1,796 1,800 1,697 1,755 50.00 1,600 1,492 43.68 49.85 47.84 1,384 1,400 1,280 40.00 1,200 1,066 31.38 1,000 30.00 805 852 800 20.00 600 400 10.00 200 0 0.00 2015 2016 2017 2018 2019

* Source: National Court Administration Requested Handled Win Rate

E) Criminal Litigation on Merit

The following table presents the cases of lawsuits in criminal district courts related laws such as the Patent Act, Utility Model Act, Design Protection Act, and Trademark Act. Unlike in civil lawsuits, there are significantly more criminal lawsuits related to trademark infringement. As of 2019, about 92.31% of the number of people filed criminal proceedings for violation of all industrial property rights laws and about 87.56% of those processed were related to infringement of the Trademark Act.

[Table 3-3-12] Treatment of Criminal Litigation against Infringement on Industrial Property Right in Last Five Years [Unit: case, month]

Processed Average Infringe Defen- Suspen- Dismi Suspen- Months -ment Year dants Impri- sion of Not -ssal of Fine sion of Acquittal Others Total to on Act sonment execu guilty indict decision Processs -tion -ment 2015 17 - 1 7 - 1 - 2 - 11 8.1

2016 22 1 - 7 - 5 - 1 1 15 9.7 Patent 2017 26 - 4 6 - 6 - 3 1 20 10.6 Act 2018 14 - 2 5 1 3 - - 7 18 13.2

2019 10 - 3 - - 5 - 7 - 15 16.7

112 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 113 7.7 6.7 4.6 4.6 3.1 9.3 6.4 3.9 8.9 2.8 5.5 3.3 6.5 16.6 12.8 to Months Average Processs 3 3 2 4 2 31 27 18 15 25 618 890 338 833 406 Total - - - 3 2 1 2 3 1 4 16 61 15 116 130 Others ------1 1 2 indict Dismi -ment -ssal of ------1 Acquittal - - 6 1 1 2 4 4 2 17 14 21 13 12 23 Not guilty Processed ------2 2 1 17 16 15 sion of Suspen- decision - 2 2 8 7 1 1 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 14 14 15 160 164 289 403 380 Fine ------1 7 2 1 170 178 109 208 257 -tion execu sion of Suspen------1 74 31 36 62 86 Impri- sonment 2 1 3 2 3 16 24 31 18 30 324 341 873 590 894 dants Defen- Year 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2016 2017 2018 2019 2015 In 2019, there were 43 lawsuits filed seeking injunction against copyright infringement, an 2) Copyright Lawsuit 2) Copyright on Merit) (Lawsuits Infringement against A) Injunction Act Act Act Pro- -ment on Act Trade Utility -mark Model Infringe Design tection court court in 2019, excluding mediation, conciliation, transfer, were 40.74%. The average number of days used to handle claims for injunctive reliefe on copyright infringement was 367.3 days, a year. the previous of about 20 days from decrease increase increase of 2.38% from the previous year, and a total of 36 cases were processed, a decrease of 16.28% from the previous year. The approval rate of compensation on claims in the district * Source: National Court Administration National * Source: 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-3-13] Status of Civil Litigation on Merits (District Court) for Injunction against Copyright

Infringement in Last Five Years [Unit: case, day]

Processed Average Re- Partial Year Permi- Dis- Rejec- With- Media Conci- Recog- Days to ceived Permi- Transfer Others Total ssion missal tion drawal -tion liation nition Process ssion

2015 57 - 8 5 - 5 - 1 - 11 10 40 184.8 2016 48 4 11 3 - 7 1 6 - 2 6 40 239.9 2017 37 5 4 14 - 9 1 6 - 2 1 42 345.4 2018 42 1 15 7 - 9 2 4 - 2 3 43 387 2019 43 2 9 10 - 6 1 3 - 2 3 36 367.3

* Source: National Court Administration

[Figure 3-3-6] Status of Civil Litigation on Merits (District Court) for Injunction against Copyright Infringement in Last Five Years (case) (%) 60 57 70.00 60.00 50 48 60.00 42 42 43 43 40 40 50.00 40 37 50.00 36 44.44 40.00 30 40.74 30.00 20 28.13 20.00

10 10.00

0 0.00 2015 2016 2017 2018 2019

* Source: National Court Administration Requested Handled Win Rate

B) Injunction against Infringement (Provisional Disposition)

In 2019, a total of 32 injunction claims for copyright infringement were reported, an increase of 6.67% from the previous year, and 28 of the total cases were processed, a decrease of 15.15% 48) from the previous year. The approval rate was 42.86%, and the average number of days used to process the injunction claims for copyright infringement was 86.8 days, a decrease of 18 days from the previous year.

48) Permission rate of injunction claims = (permitted cases) / (Total cases).

114 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 115 7.9 6.7 4.1 5.6 6.3 105 88.1 86.8 to 137.1 108.1 Months Average Processs Days to Days to Process Average [Unit: day] case, 515 331 425 539 365 [Unit: month] case, Total 28 33 33 22 48 42 29 96 40 54 Total Others 79 53 50 58 40 9 9 -ment 14 12 12 of indict Dismissal - - - - 3 Others Acquittal 4 9 37 19 15 22 25 16 15 22 Processed Not guilty Processed 8 10 20 30 22 Dismissal sion of Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Suspen- decision 8 4 6 12 12 279 319 166 244 153 Fine Permission 51 47 37 30 54 32 36 30 23 sion of 44 Suspen- execution 6 6 10 10 11 Received Impri- sonment Treatment of Criminal Litigation on Infringement of the Copyright Act in Last Five Five in Last Act the Copyright of on Infringement Litigation Criminal of Treatment Handling of Provisional disposition for injunction against copyright infringement infringement copyright against injunction for disposition Provisional of Handling Years in Last Five Years Five in Last

371 613 456 366 322 Re- ceived Year 2015 2016 2017 2018 2019 3) Litigation on Trade Secret on Trade 3) Litigation on Merit) (Lawsuits Infringement against A) Injunction In 2019, a total of 27 lawsuits seeking injunctive relief on trade secret infringement were filed, C) Criminal Litigation on Merit C) Criminal Litigation In 2019, 332 lawsuits regarding violations of the Copyright Act were filed in the criminal Year 2017 2018 2019 2015 2016 * Source: National Court Administration National * Source: an increase of 35.0% from the previous year, and a of total 16 cases were processed, a decrease of 20.0% from the previous year. The average number of days spent to handle the cases was 30%. was rate and the success year the previous of about eight days from 490.3 days, a decrease district court and 331 hearings were held. were and 331 hearings court district 3-3-15] [Table * Source: National Court Administration National * Source: [Table 3-3-14] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-3-16 ] Status of Civil Litigation on Merits (District Court) for injunction against Trade Secret Infringement in Last Five Years [Unit: case, day]

Processed Average Partial Recom Year Received Permi- Dis- Rejec- With- Media Conci- Recog- Days to Permi- menda- Transfer Total ssion missal tion drawal -tion liation nition Process ssion tion 2015 21 1 6 5 - 3 - - - 2 4 21 336.7

2016 26 - 4 8 - 3 - 1 - - 6 22 487.3

2017 20 - 3 7 - 3 2 - - 1 4 20 340.0

2018 20 1 3 8 - 5 - 1 - 2 - 20 498

2019 27 - 3 6 - 1 1 3 - 2 - 16 490.3

* Source: National Court Administration

[Figure 3-3-7] Status of Civil Litigation on Merits (District Court) for Injunction against Trade Secret Infringement in Last Five Years (case) (%)

30 46.67 50.00 27 26 45.00 25 40.00 21 21 22 20 20 20 20 35.00 20 30.00 26.67 16 30.00 23.08 23.53 15 25.00 20.00 10 15.00 10.00 5 5.00 0 0.00 2015 2016 2017 2018 2019

* Source: National Court Administration Requested Handled Win Rate

B) Injunction against Infringement (Provisional Disposition )

In 2019, a total of 35 claims injunction against trade secret infringement were filed, an increase of 94.44% from the previous year, and 28 cases were processed, an increase of 16.67% from the previous year. The approval rate for the injunction claims for trade secret infringement 49) was 17.86%. The average number of days used to process was 113.3 days, a decrease of about 31 days from the previous year.

49) Permission rate of injunction claims = (permitted cases) / (Total cases).

116 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 117 144 74.2 10.8 12.6 15.0 12.4 13.9 114.1 127.3 113.3 Process Average Months to Months to 98 172 124 167 104 [Unit: case, month] case, [Unit: [Unit: case, month] case, [Unit: Average Total Months to Processs Months to 3 5 8 4 3 Other 41 24 28 38 25 - - - 1 1 Total of Dismissal Indictment - - - - 8 8 1 10 12 12 Acquittal Others 27 45 13 34 44 Not guilty 24 21 12 12 15 Processed - 1 1 3 1 Processed (person) Processed Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Dismissal Sentence Suspened 4 5 5 5 3 37 20 36 36 44 Fine 81 Permission 45 57 25 34 tion Proba- 27 18 35 38 34 9 14 10 10 12 Impri- Received sonment Handling of Criminal Lawsuits on Violation of the Unfair Competition Prevention Prevention Competition the Unfair of on Violation Criminal Lawsuits Handling of Processing of Provisional Disposition for Injunction against Infringement on Trade Trade on Infringement against Injunction for Disposition Provisional of Processing Act in Last Five Years Five Last in Act Secrets in Last Five Years Five in Last Secrets

118 108 113 126 183 (person) Received Received Year 2016 2017 2018 2019 2015 C) Criminal Litigation on Merit C) Criminal Litigation In 2019, a total of 108 lawsuits regarding violation of the Unfair Competition Prevention and In 2019, a total of 29 lawsuits regarding violation of the Prevention of Leakage and Protection and Protection of the violation of Prevention Leakage of regarding 29 lawsuits In 2019, a total Year 2015 2017 2018 2019 2016 Trade Secrete Protection Act were filed in the criminal district court and 98 hearings were held. were and 98 hearings court filed in the criminal district were Act Protection Secrete Trade 3-3-18] [Table * Source: National Court Administration National * Source: [Table 3-3-17] [Table * Source: National Court Administration National * Source: of Industrial Act Technology were filed in the 1st of instance the criminal court and 15 hearings held. were 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-3-19] Treatment of Criminal Lawsuits on Violation of the Industrial Technology Leakage Prevention and Protection Act in Last Five Years [Unit: case, month]

Processed (person) Average Received Dismissal Year Impri- Proba- Suspened Not Months to (person) Fine Acquittal of Other Total sonment tion Sentence guilty Process Indictment 2015 2 1 2 4 - 5 - - - 12 28.2

2016 15 - 1 ------1 10.7

2017 13 2 1 - - - - - 1 4 6.6

2018 30 - 4 1 - 4 - - 6 15 13.7

2019 29 1 8 3 - 1 - - 2 15 7.7

* Source: National Court Administration

2. Alternative Dispute Resolution

50) The Alternative Dispute Resolution (ADR) allows for disputes to be resolved with an agreement between the parties rather than through a court’s decision. Compared to litigation, ADR is cheaper and the dispute can be resolved much more quickly by using ADR. Moreover, ADR can provide more flexible and practical solutions, appropriate for each case. Furthermore, ADR can be held privately, which is an advantage in terms of providing protection on privacy and trade secrets.

In particular, ADR allows experts to use his/her expertise and knowledge in the field to encourage communication and compromise between the involved parties, in order to effectively 51) resolve the dispute. An administrative agency or organization that implements the ADR will set up a resolution or arbitration institution with authority to facilitate an agreement between the 52) parties.

Institutions that support IP dispute mediation or resolution include the Industrial Property

50) ADR is construed as “dispute resolution by a means other than a trial,” “dispute resolution replacing litigation,”「 and “dispute litigation」 replacing litigation”. Kang Su-mi, “The Current Status and Improvements of Administrative ADR” Journal of Arbitration Studies Vol. 25, No. 4, Korean Association of Arbitration Studies, 2015, p.52. 51) A dispute over IP rights, especially a patent right, requires professional understanding of technologies, and can be handled「 more effectively by one who」 has such expertise. Yun Sun-hee, “Disputes in ADR - Focusing on Arbitration and Resolution”, Journal of Arbitration Studies Vol. 13, No.1, Korean Association of Arbitration Studies, 2003, p.136. 52) In terms of law, such ADR is referred to as administrative ADR.” differentiated from “judicial ADR” and “private ADR.” Administrative ADR means ADR sought by a dispute resolution institution installed by an administrative institution or its affiliated organization according to applicable laws. That is, such ADR is facilitated「 at expenses of」 an administrative institution. Kim Sang- chan, “A Study on Promoting Administrative ADR System in Korea”, Korean Law Review Vol. 46, Korean Law Association, 2012, p. 216.

118 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■

54) 119 122 6,638 21 3 45

2019 6,829

137 5,084 19 1 53 2018 5,294 97 5,468 19 0 57 Commission Copyright Korea

2017 Total

5,641

53) Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Committee Arbitration Resolution Disputes SMEs Technology

47 96 4,199 17 3

2016 4,362 17 3,087 93 22 3 2015 3,222 Committee Resolution per Dispute Requests The Number of 0 Committee Resolution Right Dispute Property Industrial Committee Resolution Disputes Content Committee Conciliation Dispute Technology Industrial

The mediation is free, held in a closed session, and concludes within three months. The 1) Industrial Property Right Dispute Resolution Committee Dispute Right Property 1) Industrial Committee Resolution Right Dispute Property the Industrial to settlement dispute for Request The website of Industrial Property Right Dispute Resolution Committee (http://koipa.re.kr/adr). Committee Resolution Right Dispute Property of Industrial The website Article 41 Clause 1. Act, Promotion Invention

However, However, invalidation and cancellation of the industrial property right and confirmation of the 53) 54) scope scope of mediation covers disputes related to industrial property right, including patent application, employee inventions, and trade secrets concerning information on technology. is made either by the parties or by the prosecutor’s office in consideration of repercussions with criminal allows associated them case. In by the the the case of parties, committee requests to in participate resolution procedures such as filling out an application form and an answer to the parties. between the agreement facilitate * Source: Reconstructed from data submitted by 5 arbitration committees related to intellectual property intellectual to related committees 5 arbitration by submitted data from Reconstructed * Source: year, and in 2019, it increased by about 29.0% compared to the previous year. the previous to compared about 29.0% by and in 2019, it increased year, 3-3-8] [Figure Right Dispute Resolution Committee, the Copyright Disputes Resolution Department, the Content Disputes Resolution Committee, the Industrial Technology Disputes Resolution The number Committee. and the Committee, Disputes Resolution/Arbitration SMEs Technology of requests made to this institutions seeking IP dispute mediation has steadily increased every 3,000 2,000 1,000 8,000 7,000 6,000 5,000 4,000 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

55) scope of rights are excluded from the scope of resolutions. Industrial property right applicants, right holders, licensees, licensors, owner of an employee invention, technology trade secret owners, or any other who is directly has to do with such rights can be qualified to request 56) mediation service.

[Figure 3-3-9] Procedure of Disputes Resolution Committee for Industrial Property

Applicant Dispute Resolution Committee Start Preparation of Resolution Application Requests Accused

Registration Attendance Request of Attendance Request

No answers or no response to resolution Registration of Preparation of Answers Answers

No Formation of 3 Months Resolution(End) Resolution Committee

Hosting the Resolution Meeting (Reconciliation Rejection Ecommended)

Preparation of Resolution Report

Dispute Resolution End

* Source: The website of Industrial Property Right Dispute Resolution Committee (www.koipa.re.kr/adr)

The Committee has been registering two to three cases of dispute resolution requests per

55) Invention Promotion Act, Article 44. 56) Invention Promotion Act Article 43-2 Clause 1.

120 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ - 26 45 19 121 3(-) 7(4) 3(1) 32(14) 45(19) [Unit: case] [Unit: case] 2019 2019 53 30 23 7(-) 5(-) 3(-) 13(7) 25(16) 53(23) 2018 2018 57 32 22 - 1 2017 10(9) 23(6) 23(7) 57(22) 2017 8 47 39 2016 - 1 8(5) 8(1) 47(8) 30(2) Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 8 9 17 2016

2015 57) - - 57) 9(3) 3(2) 17(8) 2 9 5(3) 11 2015 2014 Number of Use Cases by the Subject of Industrial Property Rights Mediation and Mediation Rights Property Industrial of the Subject Cases by Use Number of Resolution Requests and Accomplishments in Mediation by the Industrial Property Property Industrial the by in Mediation and Accomplishments Requests Resolution by Request Type Request by Right Dispute Resolution Committee in Last Five Years Five in Last Committee Resolution Right Dispute

Patent Design Failure Subtotal Category Category Requests Invention Employee Employee According to According Article 113-1 of the Copyright Act, the Korea Copyright Commission is in charge 2) Copyright Dispute Resolution Department Dispute 2) Copyright Since Since March 2015, the Industrial Property Right Dispute Resolution Committee has Trademark (): accomplished. # of resolutions Trade Secrets Trade Accomplished * Source: Industrial Property Right Dispute Resolution Committee Resolution Right Dispute Property Industrial * Source: 3-3-21] [Table year year until 2013, but in 2016, there were more than 40 cases requested. In 2019, the committee successfully held 19 mediation cases out of 45 mediation cases requested. cases Trademark rights. property on industrial mediation for the requests portion of up a large take 3-3-20] [Table of the Copyright Dispute Resolution Board. The Board has seven (7) panels consisting of three (3) mediators each, and six (6) independent mediators. Mediators are experts from various 57) 2015 to 2019, the SPO referred 45 cases to the Committee and 17 cases of mediation were completed. successfully consistently consistently made efforts for mediation through partnership with the SPO and the National Police Agency, and it has been expanded and implemented nationwide since 2017. From * Source: Industrial Property Right Dispute Resolution Committee Resolution Right Dispute Property Industrial * Source: 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

copyright-related fields, including law, media industry, and academia. Each panel has at least one attorney who serves as a mediator.

Resolution is established by entering into an agreement between the parties in the resolution document. Once an agreement is reached, stipulation is made in writing which has the equivalent effect of a judicial settlement. If the agreed-upon obligations are not performed by any of the parties, the non-performing party may be subject to a compulsory injunction without a separate court ruling.

[Figure 3-3-10] Mediation Procedure of the Korea Copyright Commission

Application for Mediation Mediation Request for Mediation Division Date Attendance

Preparation of Issuing an Original Completion Hearing Letter Mediation Letter

* Source: The website of Korea Copyright Commission (www.copyright.or.kr)

The Copyright Commission aims to resolve disputes about copyright holder’s moral rights, economic rights, and neighboring copyright, and compensation. The mediation fee varies 58) depending on the purpose of resolution requests. In 2019, the committee received a total of 122 cases of mediation requests, including the six (6) cases carried over from the previous year, and successfully completed 38 mediation cases. Generally, disputes were more prevalent in the field of photography and computer programs.

[Table 3-3-22] Mediation Status by the Korea Copyright Commission in Last Five Years [Unit: case]

Registered Status Carryover Year Success from the New Total Accomplished Failure Withdrawal Others Pending Total Rate prev. yr 2015 10 83 93 34 31 11 - 17 93 52.3% 2016 16 80 96 35 38 18 - 5 96 48.0% 2017 5 92 97 23 27 31 2 14 97 46.0% 2018 14 123 137 22 55 54 - 6 137 26.8% 2019 6 116 122 38 64 14 - 6 122 37.3%

* Source: Korea Copyright Commission

58) The purpose of resolution requests refers to the result desired by an applicant through the mediation. If there are multiple applicants, then each person’s amount of request is added up to yield the final amount of resolution request.

122 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 92 80 83 123 116 123 Total 42.2% 19.9% Rate 30.5% 28.9% 46.0% Success 9 [Unit: case] [Unit: case] 19 36 30 30 80 program Computer 201 160 113 183 Total - - - 1 2 base Data- 7 10 49 28 13 - - - - 11 Pending - 6 7 5 1 rights of rights copyright Neighboring Others - - - - 1 Status 14 16 11 26 20 works Secondary copyrighted Withdrawal Withdrawal 2 2 2 4 6 -ing Edit 91 27 81 48 - - - - 1 113 -ture Sculp Failure - 3 1 6 4 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Video 20 35 23 46 40 1 9 5 8 41 Photo - - - - - Accomplished means that the original justice department submits a case for 59) Archi- tecture 80 201 160 113 183 Total 2 10 11 11 18 Art - - - - - 70 173 167 100 153 Play New Registered The Korea Copyright Commission’s Mediation Applications by Type in Last Five Five in Last Type by Applications Commission’s Mediation Copyright The Korea Years 6 9 7 6

Years Five in Last Mediation Court-Ordered of Treatment 10 7 Music 16 10 28 13 49 28 12 66 15 prev. yr prev. ate from the from Carryover Liter- Since Since 2013, the Korea Copyright Commission has been executing court-ordered mediations Established according to Article 29 according or 36 Established of the Content Industry Act, the Promotion Contents 3) Content Dispute Resolution Committee Dispute 3) Content Also known as Early Mediation. Also known

sion Year Divi- 2019 2015 2016 2017 2018 2015 2016 2017 2018 2019 [Table 3-3-23] [Table * Source: The website of Korea Copyright Commission (www.copyright.or.kr) Copyright of Korea The website * Source: Dispute Dispute Resolution mission Committee’s supports prevention and resolution of disputes arising 59) [Table 3-3-24] [Table understanding understanding was signed with the Seoul Western District Court for court-ordered mediation. The court-ordered mediation mediation shortly before an oral hearing or the actual trial, and an external expert without a session. the mediation leads judge specialized specialized in the field of IP such as copyright. In January 2019, a memorandum of * Source: Korea Copyright Commission Copyright Korea * Source: 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

out of contents transaction.

The Committee consists of 30 mediators including one (1) chairperson, and the mediators have diverse background, such as legal, academic, content industry, and user rights organizations, and appointed by the Minister of the Ministry of Culture. The Committee is divided into four (4) professional categories - game, video, knowledge information, and cartoon/ character.

The disputes subject to mediation are in the areas that relate to contents provider, provider- user, and user-user relationship. Disputes related to copyright are supposed to adhere to the Copyright Act and disputes concerning broadcasting communication and telecommunications are subject to Article 35-3 of the Broadcasting Act and Article 45 of the Telecommunication Business Act.

[Figure 3-3-11] Mediation Procedures by Content Dispute Resolution Committee Filling in Submission Application Form Application Receipt

Reconciliation Recommendation Reconciliation from the Committee before Resolution

Not reached Notification on mediation processes guidance Rejected

Form Subcommittee of Mediation (Designate the Mediation Date)

Recommendation of Mediation Proposal Reject Accept Failed Resolution

Issuing of Written Mediation

Resolution of Dispute

* Source: The website of Contents Dispute Resolution Committee (www.kcdrc.kr).

If a person seeks a relief from damage and mediation on a dispute related to content business or use thereof requests a mediation with the Mediation Committee, the Mediation Committee prepares a mediation proposal within 60 days of the receipt of the request and provide a recommendation to the parties involved. If the parties of the dispute accept the

124 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 125 4,199 3,087 6,638 5,468 5,084 Total 24,476 ------ing Pend 75 69 77 54 84 65) 359 (2) Failed Result 42 52 28 73 33 228 cess Suc- 812 893 1,124 5,218 1,004 1,385 before Agreed mediation 64) 610 645 825 608 890 3,578 (1) Failure Meditation results Meditation 73 63) 927 1,752 6,519 2,231 1,536 -able Not Avail Not 62) 752 202 106 189 130 125 Trans -fer Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 61) 870 513 215 4,020 1,186 1,236 sal Refu- 743 879 695 706 779 65) 3,802 With- drawal 64) 63) 62) 4,199 3,087 6,638 5,468 5,084 61) Total 24,476 60) 60) 20 21 21 39 12 113 C2C 272 185 199 135 225 B2B Years Five in Last Committee Resolution Dispute the Contents by Mediation 1,016 Meditation requests Meditation 3,961 2,881 5,321 4,839 6,345 B2C 23,347 In 2019, most cases that the Mediation Committee dealt with are related to game contents, The number of mediation requests submitted to the Mediation Committee has been Transfer to Transfer other authorities: Disputes not related to content area. It may transfer to the relevant authorities and notice to the Not possible to proceed the mediation process due to missing party, disconnection, closure of business, etc. Case may be Cases where mediation was due terminated to to failure abide by mediation such procedure, as one party files a lawsuit during derived. not are proposals or Cases closed since proposal, the mediation rejects Cases any party B2C (business to consumer), B2B (business to business), C2C (consumer to consumer). to business), C2C (consumer B2B (business to consumer), B2C (business to Cases pending on litigation, mediation requested to other organization, the Content Dispute Resolution Committee closed the applicants. the applicants. it to closed, notice the mediation. attend to refuses period or a party mediation case as rejection of mediation. as rejection case

Year 2016 2017 2018 2019 2015 Total Total * Source: Content Dispute Resolution Committee Resolution Dispute Content * Source: 62) 63) 64) 65) 60) 61) requests in broadcasting were the second highest, taking up 8.63%, following game contents. game up 8.63%, following taking highest, second the were in broadcasting requests which accounts for 72.13% of all the mediation requests on contents disputes. Mediation consistently increasing consistently since 2015. In 2019, it reached 6,638 cases, an increase of about 30.57% year. the previous from 3-3-25] [Table mediation mediation proposal, the Mediation Committee must prepare a written mediation agreement. the terms agreement, mediation of the mutually-agreed copies receive parties the involved After judicial settlement. of a as that same effect shall have mediation of the dispute 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-3-26] Mediation Requests by Various Types of Contents Disputes in Last Five Years

Category 2015 2016 2017 2018 2019 Total Game - 2,492 3,368 4,772 3,849 4,788 19,269 Music 34 42 50 40 57 223 Movie 14 14 27 34 34 123 Video Animation 7 13 3 7 4 34 Broadcast 27 39 84 492 573 1,215 Advertisement 35 61 31 34 58 219 Knowledge 200 106 208 230 465 1,209 Knowledge Information Information Contents 94 65 71 79 157 466 Solution Cartoon 6 8 14 13 9 50

Characters 4 1 6 9 7 27 Characters Performance 8 243 12 25 65 353

Publication 5 13 4 15 4 41

Others 161 226 186 257 417 1,247

Total 3,087 4,199 5,468 5,084 6,638 24,476

* Source: Content Dispute Resolution Committee

Taking a close look at content dispute mediations in 2019 by case type, among 6,638 cases, restriction on user access takes up the most with 2,010 cases. There were 1,044 cases of payment cancellation, cancellation, cancellation resolution and 813 cases of payment by minors. The Content Dispute Resolution Committee has been managing the court-ordered resolution system since 2011.

[Table 3-3-27] Contents Disputes Resolutions Cases Type and Category in 2019 [Unit: case]

Knowledge Cha- Total Category Game Video Others information racter Case % Withdrawal/cancellation/ 696 105 206 25 12 1,044 15.73 termination of payment Incomplete technological 116 2 2 - 6 126 1.90 protection measure Minors’payment 756 33 7 2 15 813 12.25 Undue charge 31 97 180 1 29 338 5.09 User access restriction 1,972 10 26 - 2 2,010 30.28

126 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 127 100 1.13 9.57 2.21 4.99 4.29 6.28 6.28 % Total 75 417 417 147 331 285 635 6,638 Case - - - 9 5 11 417 328 Others - 3 2 1 2 27 22 85 Cha- racter 2 6 17 41 37 13 85 622 Knowledge information The Technology Dispute Conciliation Committee 8 6 16 27 38 22 66) 726 362 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Video 2 10 62 54 210 321 558 4,788 Game ETC Total Total contract Category Clauses and advertisement operation policies operation Exaggerative / false Exaggerative Information request Information Defects on content/service Defects Damage of item/case trade of item/case Damage According According to Article 2 of the Prevention of Leakage and Protection of Industrial Technology 4) Industrial Technology Dispute Conciliation Committee Conciliation Dispute Technology 4) Industrial Technology Dispute Conciliation Committee adheres to Article 23 of the Prevention of The website of Industrial Security Information Library (www.is-portal.net). Security Information of Industrial The website

Defaults of content production/ of content Defaults 66) Conciliation Conciliation Committee proceeded with fact-finding, recommended settlement and heard opinions. expert Act, Act, the Committee takes on disputes concerning industrial technology leakage that are designated, noticed, acknowledged, and certified within the scope of each relevant act. By December 2019, 15 cases of mediation requests were received, and the Technology Dispute Industrial Industrial Technology Protection Institute. of including 15 one mediators consists chairperson, in experts technology/law, and government officers in charge of technology protection. The mediator serves a three year term, and possible. are terms consecutive Leakage Leakage and Protection of Industrial Technology Act and has an executive office at Korea * Source: Content Dispute Resolution Committee Resolution Dispute Content * Source: 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Figure 3-3-12] Mediation Procedure of Industrial Technology Dispute Conciliation Committee

Mediation Recommen- Conciliation Application Application/ Fact-Finding dation of Committee’s Review Consulting Agreement Meeting (Mediation Partment)

Notice of Issue of Written Admission Mediation Discussion/ Mediation Mediation (Parties) Proposal Decision

* Source: Industrial Technology Dispute Conciliation Committee

[Table 3-3-28] Request and Treatment of Industrial Technology Disputes Mediation in Last Five Years [Unit: case]

Processing results Application of Year Settled before Mediation Withdrawal Refusal Failure mediation 2015 3 - 1 1 1

2016 3 - 3 - -

2017 - - - - -

2018 1 - 1 - -

2019 3 - 2 - 1

* Source: Industrial Technology Protection Association

The Technology Dispute Conciliation Committee, in addition to dispute mediation, has been trying to prevent disputes in advance by suggesting damage-minimizing responsive measures through technological and legal advice/consultation to businesses effected by technology leakage or businesses that may be susceptible to such leakage and recommend corrective measures to improve security capability. 5) SMEs Technology Dispute Mediation and Arbitration Committee

The SMEs Technology Dispute Mediation and Arbitration Committee was established in accordance with Article 23 of the Support for Protection of Technologies of Small and Medium Enterprises Act in order to promptly mediate and arbitrate disputes related technology owned 67) by SMEs.

67) The website of Technology Protection Fence (www.ultari.go.kr).

128 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 7 3 10 15 47 12 129 Total [Unit: case] 7 1 7 69) 14 11 40 , and conciliation Terminated Other 68) -

1 7 1 2 3 69) a decision courta from The Arbitration Committee makes makes Committee The Arbitration ruling as the final Same effects · · Withdrawal by applicant by 9 7 9 14 51 12 Total Mediation status status Mediation Arbitration 9 7 4 8 7 35 Failure 3 6 2 3 2 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 16 Mediation Proposal Mediation Mediation Accomplished ------ing Pend- 17 21 19 19 98 22 Regi- stered of Mediation/Arbitration Effects SMEs of Disputes on Technology and Arbitration Mediation 70 36 89 68 374 111 tation Consul- The SMEs Technology Dispute Mediation and Arbitration Committee is composed of 50 Article 23 Paragraph 4 of the Act on Support for Protection of Technologies of SMEs. of Technologies Protection on Support for 4 of the Act Article 23 Paragraph etc. lack of evidence, parties, between lawsuits due to make impossible to Resolutions encourages both parties to reach reach to parties both encourages an agreement The Mediation Committee Committee The Mediation as judicial settlement Same effects

계 Year 2016 2017 2018 2019 2015 · · * Source: Ministry of SMEs and Startups * Source: 68) 69) cases cases were successfully mediated among 98 cases of technology dispute mediation that the has received. Committee and Arbitration Mediation Dispute SMEs Technology 3-3-29] [Table attorney, attorney, public accountant, engineer, technology trader or other persons with extensive knowledge on and experience in the protection of technologies of SMEs divisions or mediation divisions each consisting of 3-5 members support for prompt and amicable resolutions of disputes by inducing closed mediations and arbitrations. In 2019, 16 as as an associate professor or higher or a position corresponding thereto, and majored in the studies related to the field of the protection of technology or information; who have served as a public official of Grade IV or higher or a position corresponding thereto, and has experience in the protection of technologies of SMEs; who served as a judge, prosecutor, attorney, patent * Source: The website of Ministry of SMEs and Startups (www.ultari.go.kr) of Ministry of SMEs and Startups The website * Source: members including a chairperson. Members are appointed by the Ministry of SMEs with those persons who have served at a university, college, or publicly-authorized research institute [Figure 3-3-13] [Figure 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Court-ordered mediation has been in operation for cases of the SMEs Technology Dispute Mediation and Arbitration Committee since January 2015. The Committee has entered into agreements with Seoul Central District Court (Oct. 2015), Seoul Western District Court (Dec. 2015), Seoul Southern District Court (Oct. 2016), and Seoul Eastern District Court (Nov. 2016) for court-ordered mediation. In addition, mediation cases are handled by allowing the prosecution investigation case to be linked to the SMEs Technology Dispute Mediation and Arbitration 70) Committee through cooperation with the prosecution (‘19.11).

The SMEs Technology Dispute Mediation and Arbitration Committee provides legal and technology security expert’s advice for disputes and provides financial supports, including costs for technology evaluation necessary for estimating the amount of damage and costs for appointing a representative. Also, the SMEs Technology Dispute Mediation and Arbitration Committee provides up to five million KRW (10 million KRW if the defendant is a large-size company) to the company that filed a lawsuit if there is a high probability of technology infringement by the defendant company and resolution has not been successful. If mediation has been requested but the other party has filed a patent trial, and therefore, the mediation had to be put on hold in order to respond to the patent trial, the SMEs Technology Dispute Mediation and Arbitration Committe provides the patent trial cost of five million KRW.

[Figure 3-3-14] Support Procedure on Legal Representatives/Litigation Expenses for SMEs Applicant for Mediation ➊ Application of Mediation/ ➋ 1st Legal Representatives ➌ Discussion of Arbitration Support (20%) Mediation·Arbitration SMEs→Arbitration·Mediation SMEs→Attorneys Committee Committee

➍ Mediation/Arbitration ➎ 2nd Legal Representatives ➏ Filing Litigation Terminated Support (80%) (MediationFailed) Cooperation Foundation of Committee SMEs→court SMEs→SMEs

➐ Request for Litigation ➑ Appreciation on Investigation for Support ➒ Support of Litigation Expense (Decision on Support) Expense SMEs→Cooperation Cooperation Cooperation Foundation Foundation Foundation→SMEs

* Source: Ministry of SMEs and Startups

70) If the prosecutor in charge of the case invites the parties to apply for the Technical Dispute Mediation and Arbitration Committee, and the complainant (SMEs) applies for mediation with the consent of both parties, the Ministry of SMEs and Startups organizes a mediation team for each case referred by the prosecution and draws a mediation plan through a mediation department meeting. With the consent of the parties, the prosecution’s investigation data (prosecution’s opinion, etc.) can be shared with the Technology Dispute Mediation and Arbitration Committee to identify the case of the mediation team and actively use it for drawing up a mediation proposal.

130 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 131 NO NO Accused Accused YES S u b m i s s i o n of re s p o n s e Objection (within 15 days) Objection YES (within 4 days, can be extended once) can be extended (within 4 days, Suspension YES Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter STEP2 STEP1 STEP5 STEP6 STEP7 STEP3 STEP4 Application Request for response for Request Submission of response Submission of Mediation Committee Mediation D e c i s i o n m a d e af te r rev i ew Internet Address Dispute Address Internet Confirmation of fee receipt and receipt fee of Confirmation required document (within 7 days) document required (within 14 days, can be extended) (within 14 days, Confirmation of mediation decisions mediation of Confirmation Formation of the panel (within 7 days) of Formation NO Committee Resolution Dispute Address Internet of Process Mediation Deemed as Applicant Withdrawal Application 6) Internet Address Dispute Resolution Committee Dispute Address 6) Internet Established in with accordance Article 16 of the Internet Address Resource Act, the Internet Submission of * Source: The website of Internet Address Dispute Resolution Committee (www.idrc.co.kr) Committee Resolution Dispute Address of Internet The website * Source: [Figure 3-3-15] [Figure Resolution Resolution Committee consists of no more than 30 members including a chairperson, and configures mediation sessions to be mediated by one or three members who reviews and decides on dispute mediation cases, and the number of members of the mediation session is the parties. by selected Address Address Dispute Resolution Committee is responsible for mediating disputes related to ownership, registration, and utilization of internet addresses. The Internet Address Dispute 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Based on the judgment criteria set forth in Article 18-2 of the Internet Address Resource Act, the Internet Address Dispute Resolution Committee makes a decision to transfer or terminate the internet domain address or dismiss the complaint. If the accused does not raise an objection to the decision of transfer or terminate within 15 days after receiving the decision notice, it will be deemed to have been accepted by the accused, and the applicant can ask the Internet Address Dispute Resolution Committee to execute the details of the decision.

Since February 2005, the Internet Address Dispute Resolution Committee has started to receive requests for mediation concerning disputes related to the domain names combined with the Korean national domain, “.kr” and in 2019, the Internet Address Dispute Resolution Committee received a total of 18 requests for mediation and rendered decisions on 16 mediations.

[Table 3-3-30] Request and Treatment of Mediation on Disputes of National Domain Names [Unit: case]

Results Year Requests Withdrawal Transfer Delete Dismissal Subtotal

2015 74 33 28 3 64 10

2016 40 6 26 3 35 5

2017 33 3 24 1 28 5

2018 35 6 20 3 29 6

2019 18 2 10 4 16 2

* Source: Internet Address Dispute Resolution Committee

On the other hand, the Internet Address Dispute Resolution Committee began receiving requests for mediation concerning disputes related to the domain names combined with general domain names such as “.com” and “.net” since 2006 and in 2019, the Committee received a total of 13 requests.

[Table 3-3-31] Request and Treatment of Resolution on Disputes of General Domain Names [Unit: case]

Results Year Requests Withdrawal Transfer Delete Dismissal Subtotal

2015 32 26 1 - 27 5

2016 19 10 3 1 14 5

132 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ - 3 1 133 Withdrawal 13 13 15 Secretariat Delivery of an Original Version of Delivery Award the Arbitral of ❺

Respondent Subtotal Submission of a Written Answer, and Answer, a Written Submission of Selection Arbitration of Notification - 4 2 ❹

Notification of Receipt Receipt of Notification Attached) form (Application

❸

Dismissal Custody ❻ - 1 1 Results Hearing Delete Arbitral Award Arbitral Arbitration agreement Arbitration

Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter ❶ Secretariat of the Korean of the Korean Secretariat 10 11 12 Commercial Arbitration Board Arbitration Commercial Formation of the Arbitral Tribunal of the Arbitral Formation Transfer and Custody Transfer Transfer ❻ 16 16 13 Application for Arbitration and Pre-Payment Arbitration for Application ❷ Notification of Notification Receipt ❸

Requests Notification of Notification Selection Arbitrator

Board Arbitration Commercial in Korea Process Arbitration ❹

71) Applicant (Original Copy) Year 2019 2017 2018 Delivery of an Original Version of Delivery Award the Arbitral of A r b i t r a l Aw a r d C o u r t Arbitration decisions by the Korean Commercial Arbitration Board have the same legal effects effects the same legal have Board Arbitration Commercial the Korean decisions by Arbitration The Korean Commercial Arbitration Board is an official legal arbitration organization 7) Korean Commercial Arbitration Board Arbitration Commercial 7) Korean Arbitration Arbitration can forcefully require execution of the dispute resolution by the interested parties but resolution only helps the dispute dispute resolution. Conciliation is only responsible for facilitating communication between the interested parties by providing time and place or inviting the interested parties to one location, but it does not suggest of the accident. a facets the actual specific or evaluate parties resolution interested plan for the

❺

* Source: Korean Commercial Arbitration Board Arbitration Commercial Korean * Source: 71) [Figure 3-3-16] [Figure as the final decision by court. Since the Korean Commercial Arbitration Board adopts a single- trial system, the concerned parties cannot appeal the decision even if they are dissatisfied with the result. established established in with accordance the Arbitration Act, and its mission is to resolve domestic and overseas trade disputes in a speedy and fair manner through arbitration, mediation, and reconciliation. * Source: Internet Address Dispute Resolution Committee Resolution Dispute Address Internet * Source: 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

In 2019, the Korean Commercial Arbitration Board received a total of 15 cases, including 12 domestic and three international related to IP arbitration, which is an increase of about 90% from the previous year. There were nine cases where the amount of arbitration request was below 100 million KRW, one case where the amout was between 100 million to 200 million KRW, and five cases where the amount exceeded 200 million KRW, indicating a gradual increase in the amount of arbitration request.

[Table 3-3-32] IP rights-related Arbitration by place in Last Five Years [Unit: case]

Location 2015 2016 2017 2018 2019

Domestic 6 12 6 6 12

Oversees 3 2 5 2 3

Total 9 14 11 8 15

* Source: Korean Trade Arbitration Board

[Table 3-3-33] IP Rights-related Arbitration Requests by amount in Last Five Years [Unit: case]

Amount 2015 2016 2017 2018 2019

Less than 100 million KRW 8 7 3 3 9

100 million to 200 million KRW - 2 2 1 1

More than 200 million KRW 1 5 6 4 5

Total 9 14 11 8 15

* Source: Korean Trade Arbitration Board

8) Seoul Court Mediation Center (Court-Ordered Resolution in Seoul Central District Court)

72) The Seoul Court Mediation Center implements mediation through standing mediators , 73) 74) mediation committees , and full-time mediators . Particularly, the court is executing a partnership with outside mediation agencies where mediations are outsourced to outside dispute ediation agencies to handle specific types of disputes, and the agency selected based on its ability to handle that particular dispute provides the result of the mediation in a form of

72) Standing mediators may mediate solely, or be a member of a Mediation Committee as like as mediation judges do. Standing mediators in the Seoul Court Mediation Center handle with highly difficult mediation cases exclusively particularly on multiparty cases, appeals, complicate issues on the merits, etc. 73) Full-time mediators take duty at a mediation office in the court for one full day in every week. 74) Mediation Committee System is the oldest mediation whose members are appointed by chief justices of the court (「Judicial Conciliation of Civil Disputes Act」 Article 10 Clause 1). For a certain cases, parties choose in an agreement or the chief mediator designates over 2 members among the mediators appointed as the above.

134 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 135 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter For For the convenience of the public, the Counseling Patent Center has been offering more 1) Public Patent Counseling Center Counseling 1) Public Patent The Counseling Patent Center, commissioned by the KIPO, provides pro bono patent legal that that the industrial property rights of the socially disadvantaged can receive various protections consultant. each for consulting customized through than 10,000 cases of complimentary servicesconsultation every year through various channels including in-person consultation, phone calls, online consultation, and visiting counseling service. Moreover, the Counseling Patent Center analyzes the status of the industrial property right possession and management, and to strategies respond to disputes by the situation so registered disabilities, registered recipients of medical welfare benefit, single parent families, multi-cultural households, youth entrepreneurs, persons between the ages of six and 19, and individual inventors. property property rights related disputes, including representation at trial and at appeals seeking to overturn decision The support service is available to owners of small businesses, students, recipients of the National Basic Livelihood Security Program which are near-poverty groups, those who have been officially by recognized the country for distinguished service, people with citizens. citizens. The Counseling Patent Center provides legal advice on filing application, review, and of registration industrial property right and on trial-related procedures. The Center further provides document drafting support for filing application, including drafting a specification, opinion, and amendment. The Counseling Patent Center also provides support on industrial services for the protection of industrial property right belonging to socially disadvantaged a report to the court. This arrangement, in connection with IP rights related dispute mediation used. is being actively committees, Disputes of Settlement for 3. Other Activities 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-3-34] Counseling and Consulting Service by Patent Counseling Center in Last Five Years [Unit: case]

Counselling related to Industrial Property rights Year Consulting Total Phone Online In person Visit Subtotal 2015 13,119 761 1,722 439 16,041 37 16,078 2016 9,354 824 1,298 307 11,783 80 11,863 2017 10,158 757 1,142 303 12,360 67 12,427 2018 9,536 939 850 280 11,605 77 11,682 2019 9,591 518 883 264 11,256 74 11,330

* Source: Public Patent Counseling Center

The Patent Counseling Center supports the drafting of application documents through counseling so that the embodied ideas can be protected. For patents, utility models, and designs, the Patent Counseling Center supports preparation of documents such as drafting specifications, drawings, opinions, and amendments throughout the application and examination process, and in the case of trademarks that are relatively easy to fill out the application documents, consultation is provided only for what is necessary to prepare the trademark registration application. When it is necessary to write an opinion, amendment, or response to an objection at the screening stage, the Patent Counseling Center is also providing support on document drafting.

[Table 3-3-35] Number of document drafting and applications by Patent Counseling Center in Last Five Years [Unit: case]

Support for document drafting Number of Applications Filed · Year Spec Opinion Utility · Others Subtotal Patent Design Subtotal drawing Amendment model 2015 502 393 - 895 160 69 216 445 2016 232 257 2 491 79 38 76 193

2017 179 200 4 383 39 28 71 138

2018 241 232 2 475 35 28 127 190

2019 262 224 3 489 53 25 138 216

* Source: Public Patent Counseling Center

Meanwhile, the Public Patent Counseling Center is strengthening support for resolving industrial property rights disputes for the socially disadvantaged through system improvement

136 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 1 137 19 114 134 744 129 2,753

43,499 215,467 168,342 [Unit: case] [Unit: [Unit: case] [Unit: 2019 2019 3 17 81

116 136 1,761 1,102 42,640 171,050 125,466 2018 2018

73 11 87 22 827 869 120 43,077 136,817 181,663

2017 2017 4 10 95 76 76

109 1,031 1,367 27,271 27,271 45,942 75,687 2016 2016

7 3 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 43 53 46 768 2,144 27,424 27,424 45,316 75,698 2015

2015

Mail Phone

Internet In person Status of Trial-Litigation Representation by Patent Counseling Center in Last Five Five in Last Counseling Center Patent by Representation Trial-Litigation of Status Copyright Counseling by the Copyright Counseling Center in Last Five Years Years Five in Last Center Counseling the Copyright Counseling by Copyright Years

Total Total Category Category Patent Court Patent Supreme Court Supreme Online auto-Counseling Counselor The Korea Copyright Commission has provided counseling services on copyright through 2) Copyright Counseling Center 2) Copyright Intellectual Property Tribunal Property Intellectual since since 2015, showing more than 130 applications per year since 2018. In 2019, there were 134 cases, contributing to minimizing the damage of the socially disadvantaged due to industrial disputes. rights property 3-3-36] [Table and expansion of support targets. Although the number of trials and lawsuits related to industrial property rights has been decreasing in recent years, the results of trials and litigation for cancellation of a trial decision against utility patents, models, designs, and trademarks, that are directly represented by the public attorneys, are remarkable. It has continuously increased * Source: Public Patent Counseling Center Public Patent * Source: * Source: Korea Copyright Commission Copyright Korea * Source: online counseling was 2,753 in 2019, an increase of 56.33% from the previous year. the previous of 56.33% from 2,753 in 2019, an increase was online counseling 3-3-37] [Table Copyright Copyright Counseling Center to satisfy public curiosity concerning copyright and prevent channels include Various disputes. for counseling phone, relevant online, and The offline center. number counseling of provided in copyright-related 2019 was 215,467, of which, the number of 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

3) Content Fair Cooperation Center

The Ministry of Culture launched the Content Fair Cooperation Center in May 2018 at the Korea Creative Content Agency for content related businesses in order to respond more individually and explicitly to damages caused by unfair trade. In 2019, the Content Fair Cooperation Center has provided support on 54 cases of unfair behavior reports, 120 cases of contract and legal counseling, and 14 cases of damage relief litigations. The Content Fair Cooperation Center executes various tasks, including registration and consultation on damages of unfair trade, support for damage relief litigation, and investigations on the fair environment.

In the event that corrective orders given by the Advisory Committee for Improving Unfair Use of Content, an organization operated by the Center, are not executed the Korea Artist Welfare Foundation will handle the case if the unfair behavior corresponds to unfair behavior as defined in Article 6-2 paragraph 1 of the Artist Welfare Act, and if dispute mediation is needed, the case will be transferred to the Content Dispute Resolution Committee.

[Figure 3-3-17] Workflow of Report Registration of Content Fair Cooperation Center

3. Advisory 4. Within 60 Days after 1. Report 2. Consultation Committee Registration

Legal service linked Recommendation Visit the center or Improvement and consultation, such as review, o f i m p r o v e m e n t the website recommendation plan and investigations (provision of the results)

6. Artist Welfare 5. (Recommendation Foundation/Contents of Improvement Disputes Resolution 7. Fact-Finding 8. (If Required) Unfulfilled) Committee

·Dispute to be mediated : Unfair activity report and Mediation Support for Support by issue transfers ·Unfair case : Fact-finding litigation leading to corrective orders

* Source: Ministry of Culture, Sports and Tourism

4) Trade Secret Protection Center

The Trade Secret Protection Center of the KIPO provides consultation services on protection of trade secrets for businesses to establish a trade secret protection system and provides a trade secret management system for businesses to manage trade secrets. The Center also

138 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 139 30 101 798 [Unit: case] 2019 22

71 822 2018

22 733 123

2017 26 161

127 2016 by the Trade Secrets Protection Center in Last Five Five in Last Center Protection Secrets the Trade by

26 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 132 221 2015

Consulting, Legal Advices, etc. etc. Advices, Consulting, Legal Years

Category On/Offline Consultation 5) Support for SMEs Technology Disputes SMEs Technology 5) Support for The Ministry of SMEs and the Large and SMEs’ Agricultural and Fisheries Cooperation Owing Owing to active public relations activities related to trade secrets, online and offline In 2019, the Secret Trade Protection Center provided consultations to 101 companies, an Legal advice on leakage dispute on leakage advice Legal Trade Secrets Protection Consulting Protection Secrets Trade Foundation Foundation have been dispatching experts in each field to the actual site, in order to prevent technology leakage of SMEs and to protect their key technologies. The experts provide technology security related consulting and in 2019, the number of consulting services was 620, year. the previous of 24.48% from a decrease * Source: KIPO, Trade Secret Protection Center Protection Secret KIPO, Trade * Source: consultations consultations related to trade secrets increased by about 4.5 times in 2017 compared to the 798. in 2019 was number of consultations and a total year, previous 3-3-38] [Table management management system, in which trade secret lawyers and security experts directly participate in system. management secret trade the company’s of improving the process follow-up follow-up support to 89 of the companies. Furthermore, along with the existing consultation that diagnoses the company’s trade secret management system and suggests improvement Center is in planning Secret Protection 2020, starting to measures, launch the an Trade in-depth consulting for the management system to enable companies to internalize the trade secret increase increase of 30 companies compared to the previous year, to help these companies establish a trade secret management system that suits the size and status of the company. As part of follow up service, the Secret Trade Protection Center provided a standard form of trade secret management, review of internal regulations and forms, and a management system as provides provides consultations various subject matter including trade secrets and legal advice on leakage disputes, and provides support for businesses to set up arrangements with related countermeasures. prepare quickly to be able to businesses if necessary, for organizations, 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-3-39] Consultation and Advice Concerning Technology [Unit: case]

Category 2009～2015 2016 2017 2018 2019

Security strategy 2,657 350 564 462 321

Security system 386 290 147 151 182

Legal advices 440 87 74 192 97

Overseas 72 8 5 16 20

Other 191 2 11 - -

Total 3,746 737 801 821 620

* Source: Ministry of SMEs and Startups

In addition, the Ministry of SMEs oversees an integrated counseling and reporting center that has combined the technology protection counseling counters of the departments and with three experts, having expertise in the areas of security, legal, and intellectual property, provide real-time counseling and reporting services from these counters. As part of the measures to eradicate technology takeover of SMEs announced in 2018, the Ministry launched the Technology Protection Support Team and the Technology Protection Legal Support Unit. The Technology Protection Support Team is operated through 13 regional offices of the Ministry of SMEs and Startups to quickly respond to technology leakage of local SMEs and to improve technology protection abilities. It has registered a total of 30 cases in 2019.

[Table 3-3-40] Technology Protection Support Team [Unit: case]

Gwang Daegu, Daejeon, -ju, Gyeong Inch Gang Chung Jeon Gyeong Year Seoul Busan Gyeong Chung Ulsan Total Jeon gi-do -eon -won -buk -buk -nam -buk -nam -nam 2018 6 1 2 2 2 3 1 1 3 2 1 - 24 2019 9 1 4 1 4 3 3 2 - 2 1 - 30

* Source: Ministry of SMEs and Startups

The Technology Protection Legal Support Team was installed to provide legal services for prevention of technology leakage and provide remedy after the technology outflow from SMEs, that lack technology protection capabilities, by providing in-depth legal advice from experts in the fields of patents, trade secrets, and fair trade, As of 2019, 47 businesses received legal support from the Technology Protection Legal Support Team.

140 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■

47 141 55 60 170 496 268 185 332 1,414 1,728 Total 3,124 [Unit: case] [Unit: [Unit: case] [Unit: [Unit: case] - - 2019

2019 Jeju-do

- 7 5 78 68 410 500 46 3,117 1,093 1,664 2018 Gyeong sang-do

2018 4 2 - - 169 628 122

1,117 2,614 1,855 Jeollado 34 2017 3 10 2017

Chung - - cheong-do 531 327 218 986 2,137 1,531 - 1

44 2016 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 2016 Gangwondo

- - 912 763 792 621 290 2 6 1,409 43 2015 Incheon

13 15 2015 New New New New Gyeonggi-do Renew Renew Renew Renew

Regional Support by Technology Protection Legal Support Team in Last Two Years Two in Last Support Team Legal Protection Technology by Support Regional Support of System for Preventing Technology Leakage in Last Five Years Years Five in Last Leakage Technology Preventing for System Support of Years Five in Last Service Protecting Technology 10 29 Seoul Category Division Codes Internal Internal Security The Ministry of SMEs is also in charge of the Technology Protection Service and the Application Malignant Monitoring Information Year 2019 2018 Ransomware [Table 3-3-41] [Table * Source: Ministry of SMEs and Startups * Source: * Source: Ministry of SMEs and Startups * Source: 3-3-43] [Table * Source: Ministry of SMEs and Startups * Source: KAITS KAITS while the latter is operated by the Large and SMEs’Agricultural and Fishery Cooperation Foundation. 3-3-42] [Table Technology Technology Leakage Prevention System in order to protect the technologies of SMEs. The Technology Protection Service provides security control services for SMEs to prevent and such as cyber-attacks, respond technology hacking, to external leakage, and DDoS, place taking on/offline while the Technology Leakage Prevention System aims to support implementation of security systems suitable for the environments of SMEs. The former is operated by the 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

In terms of support for technology disputes of SMEs, Seoul has installed and operated the Technology Protection Team and the Technology Protection Consultation/Report Center to prevent unfair activities, such as idea thefts, and improve the effectiveness of infringement relief. The Technology Protection Team provides consultations on technology protection for Seoul-based SMEs and start-ups. In 2019, a group of approximately 60 experts including patent attorneys, attorneys, and technology experts, provided customized technology protection consulting for about 53 businesses. The Technology Protection Team is also providing support for expenses incurred in cracking down on trials, litigation, and infringing goods. In 2019, Seoul published 19 expert columns in the media and produced and distributed a guidebook for the protection of SME IP rights to spread awareness of technology protection.

[Table 3-3-44] Guidebook for the Protection of SME Intellectual Property Rights

Major contents Guidebook image ▹ Main Contents: Method of protecting SME technology support system for technology protection of related organizations promote cases of support from Seoul Intellectual Property Center, provide expert's expertise from Technology Protection Support Team, financial details of intellectual property related laws ▹ Guidebook production and distribution (booklet, PDF file) ▹ Published on the website library

* Source: Seoul Metropolitan City

Gyeonggi-do expanded the Gyeonggi-do Technology Protection Desk for regular consultation on technology seizure and technology protection, and supported technology seizure and analysis and consulting services on responding to disputes using IP doctors, while also providing support, by way of subsidy, on IP-related judgment and litigation costs. Looking at the status of consultation requests by region at the Technology Protection Desk in 2019, Seongnam, where companies related to information and communication, software, and biotechnology are concentrated, is the most in-demand, followed by Hwaseong, Suwon, Ansan, and Yongin, where equipment companies such as semiconductor equipment are concentrated. Gyeonggi- do has also established a cooperative system with related organizations, such as the Special Judicial Police on Industrial Property and the Ministry of SMEs and Startups, to take criminal and administrative measures against technology leakage or seizure.

142 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 18 143 13 [Unit: case] 2019 Consultation and individuals Internal experts Internal Litigation Cost Litigation 10 13 Seoul IP center→businesses Seoul IP center→businesses 2018 2 12 Requests Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter (www.ipseoul.kr) Online Application 2017 Submission of paperwork Submission of Businesses and individuals Litigation Process and Cost and Cost Process Litigation Number of Companies Received Consultations on Prevention of and Responding and Responding of on Prevention Consultations Received Companies Number of to IP Disputes in the Last Three Years Three the Last in Disputes IP to Infringement against and Enforcement Judgment, Litigation IP Rights for System

Screening Category Seoul IP center External experts External Prevention of disputes Prevention Responding to disputes to Responding Secretariat of the Korean the Korean of Secretariat The Seoul Metropolitan City has also provided a direct IP support service for SMEs by 6) Support of Local Governments for Preventing and Responding to IP Disputes IP and Responding to Preventing for Governments Local 6) Support of Seoul Metropolitan City operates a consulting center for reporting integrated of technology Commercial Arbitration Board Arbitration Commercial * Source: Seoul Metropolitan * Source: dispatching experts to the field to resolve IP issues and operated the IP Narae program that [Figure 3-3-18] [Figure Protection AdvisoryProtection Group to domestic and overseas. In addition, the Seoul Civil Welfare Police Agency jointly cracked down on IP rights violations, such as sale of counterfeit products, with Agency. Police Metropolitan including the KIPO and Seoul organizations, related counseling counseling and consultations for dispute resolution, judgment, litigation, and crackdown on infringing items, and in 2019, Seoul provide support to a total of 43 companies. From 2020, the city’s Technology Protection Service Group plans to add a new support project to prevent trademark disputes overseas the for of export operation to the separate companies Technology seizure seizure and technology theft at the Seoul Intellectual Property Center, Geumcheon Office, and Seoul Enterprise Support Center so that Seoul citizens and SMEs located in Seoul can systematically respond to IP disputes by having experts from the Technology Protection Service provide consultations on technology infringement. Seoul also provides expenses for * Source : Gyeonggi-do * Source [Table 3-3-45] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

supports consultation on the prevention of disputes for SMEs for seven years since its launch. Similarly to Seoul, Daejeon, Ulsan, and Daejeon also have operated a direct IP support services and IP Narae programs for local SMEs and supported IP search solutions for IP service companies to create IP service environment.

Gyeonggi-do also dispatches experts to conduct consultations on strategies to prevent or respond to IP disputes for those companies engaged in IP disputes with domestic and foreign companies or companies that wish to prevent IP disputes in advance. In 2019, Gyeonggi- do provided support for 18 cases of IP dispute prevention and 13 cases of dispute response. Chungcheongbuk-do provides customized mobile patent counseling and has developed new varieties of horticultural crops and special crops for enhanced functionality.

Jeollabuk-do has implemented biological resource management policies such as cultivating new varieties of functional fruit trees, paprika, and watermelon and producing high-quality domestic seeds. Jeollanam-do has supported patent dispute resolution and infringement response through investigation and analysis on patent trends and consulted on software copyright dispute resolution through the Jeonnam Culture Industry Promotion Agency and the Jeonnam Copyright Service Center. For content and ICT companies in the Jeonnam region, consultations on software asset management were conducted to prevent infringement of illegal software copying, and efforts were also made to secure biological and genetic resources.

Gyeongsangnam-do has provided consultations and counseling services on IP infringement from the initial stage to companies that do not have financial power and lack IP capabilities, by providing on-site visit consultations with the Korea Intellectual Property Protection Agency and inviting IP experts twice a month to provide a free consultation on prevention of IP disputes of SMEs. Jeju Special Self-Governing Province is making efforts to secure biodiversity resources in the province and establish a utilization and conservation system. Sejong Special Self-Governing City has opened the Sejong Intellectual Property Center and is planning to provide support for the protection of IP in the region in the future.

144 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 145 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter proceeding proceeding against a patent owner (Supreme Court en banc Decision 2017Hu2819 2019) Decided February 21, A licensee is considered an interested party with the right to file an invalidation

It is common for the patent licensee to be subject to various obligations and restrictions, The Supreme Court ruled that a licensee is considered an interested party. An interested (2) Summary of the Judgment (2) Summary of Defendant Defendant is a licensee to plaintiff’s patent and has filed an invalidation proceeding with (1) Facts 1) Industrial Property Right Property 1) Industrial A) reason or concern for the licensee to receive opposition from the patentee. opposition from receive to the licensee for or concern reason such as license fee payments andscope of implementation. Licensee can become free from because because that person may be legally effected as negatively a result of the term. patent Here, the and sellers of person the includes and same current manufacturers future kind as the invention. According to these legal principles, absent special licensee’s circumstances, right to request an invalidation proceeding cannot be considered to have extinguished, just because there is no party party in Article 133 (1) of Act the (before amended former Patent by Act No. 11654 on March 22, 2013) refers to a person who has a direct and in interest practical extinguishing the right patent invalidation invalidation proceeding.” However, the Court Patent dismissed the plaintiff’s claim, affirming that the defendant, as licensee, in an interested party. The plaintiff then appealed to the Court. Supreme related related to the patent, and therefore whether the licensee was an interested party was a non- issue. The Tribunal Patent decided in favor the defendant. Plaintiff appleaded to the Patent Court to seek cancellation of the Tribunal’s Patent decision asserting that “as licensee to the seek be able to to the patent to interest and practical direct have does not the defendant patent, the Patent the Tribunal Patent in 2016, claiming that the patent in question was substantially the same as the cited in view of the regulation than expanded the scope of novelty. In the invalidation proceeding, the defendant was as ackowledged someone who works in the field of technology 4. Notable Issues from Intellectual Property Cases in 2019 Property Intellectual from Issues 4. Notable 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

such obligations and restriction by invalidating the patent through the invalidation proceeding. Even if there is a reason to believe that the patent is invalid, the patent right remains valid and effective until the patent is invalidated through the invalidation proceeding. Further, even if an invalidation proceeding is requested, it is important to note that considerable time and money will be spent until a decision from the invalidation proceeding.

For this reason, a person who wishes to use the patent without obtaining a license can first obtain a license from the patentee and practice the patented invention while postponing the dispute over the validity of the patent. The court has ruled that obtaining a license is not an expression of licensee’s intent not to dispute over the validity of the patent.

(3) Implication

Regarding whether a licensee, who has been granted the right to use the patent, is an interested party with the right to request an invalidation proceeding, this case is significant in that an en banc decision of the Supreme Court has made it clear that such interest cannot be deemed to have extinguished by virtue of being a licensee.

B) Exception to the Territorial Principle with respect to patent infringement (Supreme Court Decision 2019Da222782 Decided October 17, 2019)

(1) Facts

This is a patent infringement case that relates to a medical thread insertion device and its insertion procedure kit used in procedures for inserting and securing medical threads, used in surgical operations, into the body. The components described in the patent (individual medical devices for the above procedure) were all produced in Korea and exported for the purpose of being used in operation ultimately by a single entity. However, claim 6 failed to establish the relationship between support for the medical thread and the medical thread. Consequently, the district court rejected the claim of infringement, and the plaintiff appealed.

(2) Summary of the Judgment

According to the territorial principle as it applies to patent law, the patent owner has an exclusive right to exercise its patent, including the right to manufacture, use, transfer, sell, and import. According to the patent law, the patent right extends to and effective only in the

146 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 147 is that even if a dedicated part is produced 75) Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter In In this case regarding this issue, when the production of all parts or partially-completed Because Because the Supreme Court’s position (3) Implication Therefore, Therefore, the Supreme Court ruled that the infringement could be admitted despite the Supreme Court Decision 2014Da42110 Decided July 23, 2015. Supreme

processing processing and assembly are extremely trivial or simple to the extent that it can be seen that all the ideas of the patented invention have been implemented only by the production of the 75) products products at the stage very close to the finished product was made domestically if the actual product in the of state the part is exported to the same entity, and the final of stage processing and assembly is already scheduled at the time of the export, and the planned additional assembles the unassembled medical thread and the support included in the component (in other words, it is considered to not to have been produced domestically), the question is whether to deny infringement of a patent according to the territorial principle or whether an right. of the patent protection the practical for is granted exception domestically, domestically, it is not “domestically produced” if the assembly is done overseas, and therefore, indirect infringement cannot be established according to the territorial principle. Considering additionally the product, who has purchased only when a doctor, place takes “production” that organically organically combined components of the patented invention only by the production of whole as described above. products or the semi-finished parts territorial principle territorial of right the and patent remanded the trial decision court’s by explaining that the assembly and processing of the above-described combination and fixation are extremely of the the effects realize in which it is possible to be seen as it a trivial can state or simple, so that overseas overseas entity for final processing and assembly, then this can be considered exceptional where the actual final product will be deemed to have been produced domestically because these exported components can be easily combined and assembled to make a completed invention. on the patented reads that product country to which the patent is registered. In view of this, if all the parts or components for the implementation of the patented invention are produced domestically and exported either per component or as partially-completed product made up of these components, and if these products domestically-produced components/partially-completed are exported to a single 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

whole part or partially-completed product, it could be regarded as if the invented product had been produced domestically.

It is understood that this is based on the practical protection of the patent right, and in the case of the export of all parts or partially-completed products, the meaning of “production”was partially expanded, and the exception to the territorial principle was recognized. However, it will be necessary to further discuss whether the above requirements, which are set as the exception 76) of the territorial principle, can be generalized as an exception to the ‘All-Elements Rule’.

C) A criteria for incomplete inventions (Supreme Court Decision 2017Hu523 Decided January 17, 2019)

(1) Actual Facts

An invalidation trial was requested for on a patent related to the “leakage prevention device during flooding” because it is an incomplete invention and therefore does not correspond to an invention that can be used in the industry. In response, the Patent Tribunal rejected the request. Subsequently, the defendant filed litigation for cancellation of a trial decision to the Patent Court, and the Patent Court issued a ruling to cancel the trial decision on the ground that the patented invention could not be considered a complete invention because it could not achieve the technical effect. The plaintiff objected to this and appealed to the Supreme Court.

(2) Summary of the Judgment

According to the Court, the invention should be viewed as completed if a person with ordinary knowledge in the field to which the invention belongs (hereinafter referred to as an “ordinary skilled person”) can repeatedly implement it, and the invention is constructed specifically and objectively enough to predict the possibility of achieving the desired technical effect. In addition, whether the invention has been completed should be determined according to the technical level at the time of filing, based on the claim, in consideration of the purpose, configuration, and effects of the invention described in the description of the invention as a whole, and it should not be recognized necessarily to limit to specific examples in the 77) description of the invention.

76) “Introducing the en banc decisions of the Supreme Court and major decisions in the second half of 2019 in the field of intellectual property”, January 31, 2020. 77) Refer to Supreme Court Decision 2012Hu3312 Decided February 14, 2013, Supreme Court Decision 92Hu1806 Decided September 10, 1993, etc.

148 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 149 )

78) Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Law (Supreme Court Decision 2017Hu752 Decided August 14, 2019 Decided August Court Decision 2017Hu752 (Supreme Law A criteria for determining the intention of Article unfair 7 (1) 12 of the former Trademark D) (3) Implication When determining whether invention is complete, conventional precedents demanded the In the specification of the patent, various embodiments, drawings, and effects, such as A rights holder of the foreign trademark with prior use, the plaintiff, filed a request for an (1) Actual Facts (1) Actual “Criteria “Criteria for Judgment of Incomplete Invention based on Supreme Court Decision 2017Hu523 Decided January 17, 2019”, Intellectual Property Research, Vol. 14, No. 4 (December, 2019), p. 65. 14, No. 4 (December, Vol. Research, Property Intellectual

does not fall under Article 7 (1) 7 of Law the as former it Trademark is dissimilar to the plaintiff’s international trademark and service mark. In regards to the foreign trademarks with prior use, 78) The Patent Tribunal dismissed Tribunal the The because request of the Patent trademarks that appearances leave a dominant impression on the were consumers different in general these two (2) and trademarks them be to determined dissimilar. On this, the plaintiff of filed a trial for cancellation decision to the Court, Patent and the Court Patent dismissed the plaintiff’s request on the grounds that it invalidation invalidation trial against a holder of the domestic trademark and service mark, the defendant, to the Tribunal Patent on the grounds of Article 7 (1) 7 and 12 of the formal Law. Trademark when judging the completion of an invention in the future. of an invention when judging the completion “degree “degree to which the effect of the invention pursues can be obtained.” But in this case, it is significant to have reduced the confusion in related to practice the completion of the invention by suggesting a more relaxed criterion of the “degree to which the invention can expect the possibility of achieving the desired technical effect,” and expected to be an important guide court was remanded. was court 1 by the defendant (the claimant trial) for in invalidation and which the the circumstances earth leakage breaker did not work, the ordinary skilled person could expect that the connection terminal block and the electric leakage preventing conductor of the invention of the first paragraph of this case could achieve the desired technical effect, and the decision by the trial electric electric shock prevention of the electric leakage protection conductor around the connection terminal block, are described in detail as a means to achieve the object of the invention. By sample of the verification result in shown the verification value current summarizing the leakage 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

even if the mark is similar to the trademark with prior use that is recognized as representing a product of a specific person among foreign consumers, it cannot be considered that the defendant had an unlawful purpose at the time of filing, so it does not fall under Article 7 (1) 12 79) of the former Trademark Law. The plaintiff then appealed to the Supreme Court.

(2) Summary of the Judgment

The purpose of Article 7 (1) 12 of the former Trademark Law is not to allow registration of trademarks that is recognized by domestic or foreign consumers as representing products of a specific person (hereinafter referred to as “trademark of the imitated object”) and also to not allow a third party to register and use a trademark domestically, just because such trademark is not registered domestically, to cause damage the rights holder of the imitated trademark in such a way as to gain unfair profit by riding on the business credit embodied in the imitated trademark, or by damaging the value or hindering the domestic business of the imitated trademark owner. Therefore, for a registered trademark to be applicable under this regulation, the imitated trademark must be recognized by domestic or foreign consumers as a trademark of a specific person, and the applicant of the registered trademark must use the same or similar trademark as the imitated object for a fraudulent purpose.

According to the court, whether a trademark to be imitated is recognized as a trademark of a specific person with domestic or foreign consumers should be determined based on factors, such as the usage period, method, aspect, and scope of use of the trademark. Furthermore, whether the applicant of the registered trademark has an unlawful purpose should be determined based on factors such as the time of filing of the registered trademark with comprehensive consideration of the degree of recognition or creativity of the trademark of the specific person, the degree of identity or similarity between the trademark of the specific person and the trademark of the applicant, the existence and content of negotiations over the trademark between the applicant and the specific person, other relations between the parties, whether the applicant has specifically prepared a business using a registered trademark, whether the product is identical or similar, and whether there is an economic relationship, transaction status.

79) Patent Court Decision 2016Hu5651 Decided February 17, 2017.

150 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 151 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter (3) Implication In the matter of whether or not to recognize the illegal purpose of Article 7 (1) 12 of the old At At the time of filing the registered trademark and service mark, it should be considered precedent precedent confirms that there is a possibility that a may trademark registration become invalid if and is there unlawful a purpose of similarity companies is the other to recognized. trademarks There is also significance in that the scope of protection of overseas famous trademarks and trend. the recent to according broadly has been construed trademarks figurative the time when the registered trademark was used (the development period of the trademark of Bulls One was after Red Bull Racing participated in Team the domestic Formula One flagship product and the defendant’s the plaintiff the dissimilarity between despite competition) (energy drinks-automobile products). Therefore, even if they are not in the same industry, this Trademark Law, this case is significant to acknowledge the unlawful purpose in consideration of the unlawful purpose acknowledge Law, in this is to consideration case significant Trademark the usage of pattern the trademark with prior use (operation of the Red Bull Racing and Team) similar, and that the designated product and the designated serviceand the similar, product business designated and of the that the designated defendant’s mark such as automobile supplies and their sales, are to related the and maintenance repair of vehicle performance, so there is room for an economic relationship with the service business using the plaintiff’s mark. similar similar to the plaintiff’s mark, and the development period is also after the above auto racing team participated in the first global auto racing competition held domestically with a racing car marked with the plaintiff’s mark, that the defendant’s mark is unlikely to have been made on the basis of the mark actually used by the defendant as the dominant impression is not defendant defendant must be deemed to have applied for the defendant’s mark for use with an unfair intention in order to cause damage to the plaintiff in view of the fact that the plaintiff’s mark is based on the shape of the side of a red bull jumping or rushing to the right, that the unique composition of the details gives a great degree of creativity, that the defendant’s mark is quite that that trademark and service mark with prior use was recognized as a service mark of a specific eventsports and related team the racing to auto related consumers with foreign least person, at suppliers, which is the service business that used the trademark. It was determined that the 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

2) Copyright

A) A criteria for determining the comprehensive agency included in the trust management of copyright (Supreme Court Decision 2015Do1885 Decided July. 24, 2019)

(1) Actual Facts

Company A, the defendant’s copyright agency, has been granted the right to license and use the work exclusively for a certain period concerning photographic work. The defendant provided information of the copyrighted work online, determined the selling price of the copyright to use the work, collected the fee directly, and remitted the amount excluding the fee to the rights holder. However, Company A received compensation for damages and settlement money related to copyright infringement, as well as engaged in business behavior similar to that of a trust management company while operating its copyright agency, such as sending remittance excluding fees to the rights holder, which became problematic.

(2) Summary of theJudgment

According to the court, whether the copyright agency brokered a comprehensive agency for the use of works, by operating in the same manner as the trust management company even though the copyright agency did not receive the trust of copyright, should be determined after taking into account whether the substance of the above copyright trust management exists among the acts related to the use of copyrighted works, by the copyright agent.

In addition to granting permission to use the work, the defendant has been granted with full authority, including authority to undertake civil and criminal measures against infringement from multiple rights holders, relied on its exclusive license to decide on the promotion, sale, and price of the work independently, and collect royalties from multiple customers, and took civil and criminal actions against several copyright infringers, received the settlement money, and remitted certain portions of each to the supplier or copyrights holder. Accordingly, the court stated that such acts by the defendant rises to the leve of “a comprehensive representation about the use of works” under Article 2, No. 26 of the Copyright Act.

152 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 153 , around April 2013, and the 80) Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter (Supreme Court Decision 2017Da212095 Decided June 27, 2019) (Supreme A criteria for determining the creativity and practical similarity of mobile game products (1) Actual Facts (1) Actual The plaintiff released Game A, a match-3-game type game B) This is to restrict the copyright established agency/brokerage, by reporting from operating (3) Implication The copyright consignment management system under the Copyright Act is divided into It refers to a game in which three or more tiles of the same shape are connected in a straight line and disappears, and the number of tiles is scored.

public transmission. public The transmission. issue as was a whether the creative plaintiff’s be could game protected work and whether the defendant’s game and the plaintiff’s game had substantial similarities. 80) an infringement claim against the defendant to cease infringement and pay compensation for Competition and Unfair Infringement the Copyright is violating the defendant because damages had imitated the defendant that insisting under Article 750 of the Civil Act, or falls Act, Prevention his/her game and that the defendant’s actions violated the rights of reproduction, remake, and defendant defendant released the same type game, Game B, around February 2014. The plaintiff filed of comprehensive agency concerning such a copyright agency/broker is the comprehensive has been defined. manager as a trust and act agency in the same form as the trust management business entity, by avoiding the authorization of the requirements business management trust entity. The case is significant in the that criteria No. 19 of the former Copyright Act, a copyright business agency/brokerage was defined and its to use shall agency related be but comprehensive that excluded, the Copyright Act stipulated was revised on December 28, 2006, and changed the form of regulations and stipulated that business. management trust is included in the copyright agency comprehensive Tourism, Tourism, and copyright business agency/brokerage is a matter to be reported (Article 105, 1 Paragraph of the Copyright Act). A person who conducts copyright trust management business, without permission, obtaining is subject to imprisonment for not more than one year or a fine of not more than 10 million KRW (Article 137 (1) 4 of the Copyright Act). In Article 2, a copyright trust management business and a copyright business. agency/brokerage The copyright trust management business is regulated by the Minister of Culture, Sports, and 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

The appeals court overtuned the decision by the district court and ruled against the plaintiff, and the plaintiff appealed to the Supreme Court.

(2) Summary of the Judgment

Game products may have features or originalities that are distinct from other game products by selecting, arranging, and combining various components in the process of technically implementing the author’s production-intent and scenario. According to the court, whether or not the game product is creative should be determined in consideration of not only the creativity of each components constituting the game product but also whether the game product itself has reached the level of protection as a work with creative originality that is distinct from other game products as components are selected, arranged and combined in the process of being technically implemented according to certain production intentions and scenarios.

The court ruled that both game products were substantially similar because the defendant’s game contained the original form of expression in line with the selection and arrangement and organic combination of the main components technically embodied in the production intention and scenario of the plaintiff’s game.

(3) Implication

This case is significant in that the judgment presents specific criteria for determining the creativity in a copyright infringement lawsuit against mobile games. Due to this case, in the future, the industry practice of releasing new games by imitating the original game rules or characters of successful games as they are and only partially transforming the characters will be improved to a great extent. Also, such decision has the effect of promoting awareness of the fair use of game works and copyright protection.

C) Denying responsibility for copyright infringement concerning theft of competitors’ IR data (Supreme Court Decision 2019Do11970 Decided October 31, 2019)

(1) Actual Facts

During a meeting at the office of defendant B, defendant A was instructed by the CEO D to produce a document Investor Relations for B (Investor Relations, hereinafter referred to as “IR”). Defendant A obtained, by questionable means, the corporate explanatory data (hereinafter

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‘selection, ‘selection, arrangement, or composition of the material’ borrowed by the defendant for the IR data. 81) the plaintiff’s IR data and the defendant’s IR data. Regarding the selection, arrangement, or composition of materials, which is a requirement for collective works, it was considered to be not specifically specified what the expression of creative the plaintiff’s IR was data and what the matter matter who writes, it is difficult to recognize the special creativity that exceeds the limits of a the same or similar. express but to has no choice it because work functional for for companies to use expressions of practical ideas that investors can easily grasp rather than of the plaintiff’s IR data and contents The expressions grasp. can readers that expressions artistic them to in the table corresponding or information of a merely the facts are description objective of shown contents above, to according the expression method commonly used in the field. No created by to provide a to created information related management or corporate performance financial status to financial interests, and the original purpose of writing in with accordance this data is similarity of the original trial. submitted IR data was presented and distributed by CEO D at the corporate investment briefing, investment the by CEO corporate D at and distributed presented was IR data submitted and CEO D claimed copyright infringement against defendant A and defendant company B. In response, both the court and district appeals court ruled that it was not infringement, copyright Court. the Supreme to and the plaintiff appealed referred referred to as “E IR”) which was prepared and distributed by company E. Defendant A used the same or similar expressions as the expressions contained in the E IR to drafting the IR for defendant B (hereinafter referred to as “B IR”). Defendant A the submitted IR to CEO D and did Defendant that report A the not had fact used the from E expressions IR in of production IR. The 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Also, in the phrase “Last 5 years in Korea, Security of Core Competency, Market Approaches, Investment Budget,” it is difficult to say that it contains a creative personality because not only is there not specific creativity found in each material selection but also in the arrangement and composition of the details, it is only a list of common sentences that can be similarly composed in the same industry on the subject. Furthermore, it was difficult to recognize substantial similarity because the portion of the crime list was only about 5 out of 50 pages of IR data, that is, about 10% of the total volume, insignificant both quantitatively and qualitatively.

The Supreme Court concluded that it is difficult to acknowledge that the plaintiff’s E IR material is a work composed of creative expressions enough to be the subject of copyright law protection and denied the copyright infringement because it was difficult to recognize the substantial similarity between the plaintiff’s E IR data and the defendant’s B IR data, even if there were parts that could be considered to contain some creative personality.

(3) Implication

In this case, it was confirmed that in today’s fierce competition between corporations where theft of explanatory data between corporations of the same type occurs, creativity cannot be recognized if the stolen content is an expression commonly used in the same industry even in the case where reliance can be recognized and that substantial similarity cannot be recognized if the proportion of the stolen part is insignificant quantitatively and qualitatively in the entire data. 3) Trade Secret

A) Defining the terms “informativeness”and “acquisition”while acknowledging the overseas infringement of trade secrets for the original seed of new crops such as cabbage (Suwon District Court Decision 2018No5924 Decided September. 19, 2019)

(1) Actual Facts

The company, which is claiming that is has suffered damage (“damaged company”), is a company that operates various businesses related to seed breeding and development research. In the case of such a seedling company, a hybrid seed (usually referred to as “F1 seed”) is

156 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 157 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Both Both the defendant and the prosecutor appealed, and in particular, as the reason for the In the district court trial, the defendant argued that the original seeds of cabbage was not The defendant is the representative The of defendant is the the Chinese G, representative seedling and company H is the head of genetic genetic information contained therein, but the court rejected the defendant’s allegations and all appeals. rejected the original seed is only materiality (seed) and does not correspond to the trade secret defined by the Unfair Competition Prevention Act, that is, “information” in terms of technology and management and the original seed of this case has no economic value by itself, and it cannot be said that the acquisition of the original seed has made him aware of trade secrets such as and effort for development and has independent economic value. development economic and has independent for and effort appeal, the defendant insisted that it could not be considered “acquisition” because 45g of considered considered a trade secret, but the district court ruled that it was classified as a trade secret as by considerable confidential and managed was kept that or information management technical efforts of the victim company because the original seed of this case is not publicly known to a cost considerable number has of invested unspecified large people, and the company damaged “leak the original seeds of the damaged company, and I would pay the price.” After H’s approval H’s approval After the price.” pay and I would company, the original seeds of the damaged “leak for this, the 8.6 defendant million remitted KRW to and from H’s H received account the original company. the damaged developed by secret line), a trade P (45g of father seed of cabbage traded traded with the damaged company so was well aware of the properties of the original seeds and the in circumstances which the damaged company manages the original seeds as an the the original decided defendant cabbage acquire to Notwithstanding, secret. trade important of the damaged through company H, grow, and cultivate, sell it in China so to H suggested that the manufacturing industry. the manufacturing development on the domestic and is an authority company of the damaged center the research of new varieties of cabbage. The defendant has been in the seed business for a long time and produced produced by crossing the original seed consisting of a father and a mother, and then these F1 seeds are marketed. Nurturing and managing the original species is the most important core technology of and the securing company, the original seeds newcan of produce varieties seeds with various properties, so the original seeds play the same role as the blueprint of a product in 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

(2) Summary of the Judgment

(A) “Informativeness” of the original seed of the father line

The original species developed by the damaged company after more than seven years of the development process can be seen as an aggregate of technology for producing cabbage with the target trait, and the original seed of this case is part of the technology for producing seeds. It also has the characteristics of information that the acquirer of the information can use the information to produce or use it without limit as the original seed can be used by its acquirer to produce an unlimited number of seeds. Its “informativeness” can be recognized as just because the production of seeds may be possible even if the human eye cannot see or analyze the genetic information contained in the original seed of the father line.

(B) “Independent Economic Value” of the original seed

The original seed of this case has an independent economic value considering that it has DNA related to a specific genotype, which was fixed to the original seed of this case by the long- term efforts of the damaged company, that it is possible to obtain the benefit of shortening the research period and development cost if developing a new variety using the original seed of this case, and that 8.6 million KRW was paid in return.

The acquirer of the original seed can produce innumerable F1 seeds by continuing to conduct crossing between the parent seed of F1 cabbage or other seed using the method of self-pollination of the original seed. It can be evaluated as the acquisition of the trade secret as this corresponds to the acquirer making and using the original seed of this case as his/her own according to social norms. The acquisition of trade secrets does not necessarily mean that the information can be recognized in the case of acquiring a specific object containing certain information if there is no obstacle in producing F1 seeds even if the information is not specifically recognized like this case.

(3) Implication

This case is significant to be the first case that the court recognized the original species of crops as trade secrets and to have the “information,” “economic value,” and “acquisition”

158 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 159 82) Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter in determining whether the blending ratio in this case falls under 83) is sufficient if the can system be determined to be reasonable in light of the size of the Court Decision 2019No447 Decided July 23, 2019) (Daegu District company The degree of “reasonable effort” under the Unfair Competition Prevention Act (revised) (revised) Act Prevention Competition under the Unfair effort” “reasonable The of degree In the district court trial, (1) Actual Facts (1) Actual The company, which is claiming that is has suffered damage (“damaged company”), B) After that, the prosecutor appealed for all the judgments of the original trial, but the Supreme Court rejected the appeal (Supreme (Supreme the appeal Court rejected of the original trial, but the Supreme all the judgments for appealed the prosecutor that, After Court Decision 2018Godan428 Decided January 9, 2019 District of Daegu Kimcheon Branch Court Decision 2019Do14411 December 12, 2019). Court Decision 2019Do14411 December

the trade secret, it was premised that the legislative purpose of changing the expression 82) 83) for for breach of duty and violating the trade secret protection system, and they insisted that the blending ratio in this case could not be considered to have been kept confidential, and secret. a trade not was therefore, at at the damaged company, to produce coatings and proposed to join the defendant company. Defendants B, C, and D saved the data related to the compounding ratio on a USB memory card or sent the a data personal e-mail for personal account use, and defendant A the obtained data that had been taken out from the damaged company. The defendants were prosecuted is a key factor in the manufacture of coatings. While purchasing the coating agent from the damaged company, defendant A decided to establish the defendant company E to reduce the cost of production by producing the coating agent itself but did not have the technology to produce coatings, so sequentially recruited defendants B, C, and D, who were employees specializes specializes in development and manufacturing of and coatings has developed various coatings through trial and error by investing a large number of R&D expenses, and the blending ratio seed can use it to or produce use an unlimited number of times, it is to still considered play the role of a blueprint hence the “informativeness” was recognized. Furthermore, it was evaluated as the “acquisition” of the trade secret, as it corresponds to the acquirer making and using the norms. the social to according case original seed of this of trade secrets determined in detail. secrets Trade are defined as technical or management information under the Unfair Competition Prevention Act, and in the case of materiality (seeds) denied. In was this ruling, although the informativeness whether issue the was this key case, like genetic information contained in the original species is unknown, the acquirer of the original 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

of confidentiality by “considerable effort” to “reasonable effort” in the Unfair Competition Prevention Act, and these points were put together in light of the size of the damaged company with annual sales of 2.2 billion KRW, net profit of 140 million KRW, and a total of nine employees at the time of this incident: ① The fact that it is rare for companies of this size to prepare policies for retention and destruction of documents in advance and conduct regular security training. The employees were frequently warned to be careful when purchasing raw materials or a raw material code unique to the damaged company was assigned for the management. ② The fact that the files containing the blending ratio in this case were stored on the computers of number of employees, but most of them were in charge of product development, production, and sales, so it was necessary to retain the data. ③ The fact that the damaged company had to use an access card or fingerprint recognition procedures to gain entry. ④ The fact that as the number of employees working at the damaged company was small, and the defendants were employeed for about three to seven years, the representative of the damaged company had a certain level confidence in the defendants, and the damaged company had no cases of technology leakage before this incident. The court determined that a notice would had been made or a consensus would had been formed by the employees, including the defendants, at the time of the case that the blending ratio in the case was considered a secret in a reasonable way, and that it was in a state of being able to recognize that the information was objectively maintained and managed in confidence, such as restricting the access of competitors.

Both sides appealed, and the trial on the appeal acknowledged that the blending ratio in this case was a major asset in the business of the damaged company, but disagreed with the decision of the district court as to whether it was a “trade secret.”

(2) Summary of the Judgment

(A) Criteria for determining the “reasonable effort”

The term “trade secret” referred to in Article 2, subparagraph 2 of the former Unfair Competition Prevention and Trade Secret Protection Act (before being amended by Act No. 13081 on January 27, 2015, hereinafter referred to as the “Unfair Competition Prevention Act”) is a product that is not publicly known and has independent economic value, and refers to production methods, sales methods, and other technical or management information useful for business activities that are kept confidential by considerable effort. In this context, “to be kept

160 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 161 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter ① The damaged company did not individually assign a password or indicate that it was a (B) In this case In light of the following it circumstances, was determined that the blending ratio in this case Therefore, Therefore, when determining whether it falls under the trade secret under the current Unfair The The Unfair Competition Prevention Act, revised to Act No. 13081, eased the above the defendants and employees of the damaged company to have free access the blending ratio file on the computer. The employees of the damaged company used an auxiliary storage device without any restrictions, and they were free to send and receive documents through information or information security management manager for the blending file ratio in this case or regularly conduct security training for all employees and did not receive confidentiality notes or pledges from employees regarding internal company information. ③ At the time of this incident, no password was set on the computer where the blending ratio file was stored, thereby allowing trade trade secret in the blending ratio file in this case, and there were no policies on retention or disposal of documents. ② The damaged company did not designate a handler of confidential was insufficient to acknowledge that it was a “trade secret” which was kept confidential through through confidential kept was which secret” a “trade it was that acknowledge insufficient to was Act. Prevention Competition under the Unfair efforts reasonable who could access the information or the method of accessing it were restricted, and whether the and whether restricted, it were of accessing or the method information the access who could confidentiality obligation was imposed on the person who accessed the information, but it will be said of the that in is effort degree be to sufficient be can reasonable if determined the system of the company. light of the size Competition Competition Prevention Act, it is possible to set a standard based on whether there was any indication or notice that the information could be recognized as confidential, whether those “considerable efforts” “considerable with “reasonable efforts.” The reason for the revision is to strengthen the protection of trade secrets of SMEs, because there are cases in which SMEs with poor financial be protected. thus cannot and secrets trade protect to sufficient systems have do not conditions confidential by considerable effort” refers to a state in which it is possible to objectively recognize recognize objectively it is possible to in which a state to refers effort” considerable by confidential that information is kept and managed in confidence, such as marking or notifying information that may be perceived as confidential, restricting who or how to access the information, or the information. to access who have on those obligations imposing confidentiality 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

personal e-mail, and there was no storage or tracking function for log record files. ④ The access card or fingerprint recognition type locking device is generally only used to prevent intrusion by outsiders, and it is difficult to say that it was possible to recognize the fact that the blending ratio in this case was kept and managed in secret through reasonable efforts among the various data existing in the victim’s company only by the existence of such facilities. ⑤ It is difficult to see that the statement of the damaged company’s representative, “be careful because it is an important data” is an active effort to manage the blending ratio in this case. ⑥ It is difficult to demand the damaged company to try to keep the blending ratio confidential at a high cost compared to the value of the blending ratio in this case because of the sales of the damaged company (about 2.2 billion KRW), but, in particular, measures ① and ② do not require special funds, and therefore seems that the damaged company did not manage the blending ratio of this case with reasonable efforts. ⑦ Apart from the fact that the defendants are punished for breach of duty, the blending ratio in this case cannot be viewed as a trade secret, which has not been managed with reasonable efforts by the damaged company, even if the defendants and other employees of the damaged company recognized or were able to recognize that the blending ratio in this case corresponds to an important asset of the damaged company, it does not seem fair that the defendants are punished for infringement on business.

(3) Implication

In this case, while recognizing the legislative intent to ease the “considerable efforts” with “reasonable efforts,” stating that the degree of effort is sufficient if the system can be determined to be reasonable in light of the size of the company, to strengthen the protection of trade secrets of SMEs under the Unfair Competition Prevention Act revised in 2015, the management of the confidentiality was denied for the same factual relationship, unlike the first trial, and the Supreme Court confirmed the dismissal of the appeal. This significance of this case is that as it provides clarification to the measures that the companies should take in protection of its trade secret. Here, even an SME with a total of nine employees must take the measures for its trade secret to be recognized as a “trade secret” kept confidential through “reasonable efforts.” Such measures that do not require much funds, such as document management regulations, a designation of security management officers, security training for all employees, request for a memorandum of compliance, computer password setting, auxiliary storage device, and personal mail control.

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the court explained that the purpose of prohibiting infringement of 84) point point of the trade secret protection period and part of the product are related to the infringement of trade secrets (Supreme Court Decision 2017Da34981 Decided 10, 2019) September A criteria for calculating the contribution rate of trade secrets when the starting

(2) Summary of the Judgment (2) Summary of In the district court, Next, concerning the claim concerning for damages, the margin could that Next, the plaintiff operating insisted First, First, in connection with the injunction, the plaintiff claimed that the period of protection of (1) Actual Facts (1) Actual The plaintiff is a company that develops and supplies navigation products for the imported C) Seoul High Court Decision 2015Na9945 Decided July 6, 2017.

engaged engaged in fair competition, from a superior position and to allow the non-infringing party (i.e., trade secret holder) to return to its original position as if there had not been such infringement. 84) trade trade secrets is to prevent a party from unfairly taking advantage of another party, who is limited limited to the amount that corresponds to the for rate royalty the general particular technology and that the technology in this case is limited to the interface module in navigation, and therefore, taking into account the product as a whole, the contribution rate should be about 10%. be recognized from the profit, and defendant’s sales in be and this recognized operating case, the contribution should rate not be considered or should be 100% if it needs to be considered in calculating the damages. The defendant claimed that the amount of compensation for damages should be trade secrets of secrets trade should information technical not be limited, and even if it is limited, the starting point should be the time when the final judgment is confirmed and actually and executed, that until 2017 secrets as trade should be protected therein installed with navigation the automobiles and sold. be manufactured scheduled to are when these automobiles navigation navigation products. The plaintiff filed a lawsuit for injunction and compensation for damages, claiming that the defendants manufactured and sold navigation products using plaintiff’s trade secrets. automobile automobile through consignment from a foreign automobile manufacturer to develop 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Moreover, the period for the prohibition of infringing trade secrets should be equal to a considerable time necessary for the infringer or other fair competitor to acquire the trade secret through legal means, such as independent development or reverse engineering. The court interpreted that the end of the period of protection of trade secrets to be around March 2012, about one year and six months from the start of the defendant’s development efforts and as of the last day of the hearing in this case, the plaintiff’s right to prohibit infringement of trade secrets and to prevent infringement is deemed to have lapsed, therefore the case was dismissed.

Furthermore, concerning the claim for damages, the court found it difficult to calculate the 85) number of damages in this case under Article 14-2 (2) of the Unfair Competition Prevention Act because the technology in this case is mainly related to the interface module of the navigation system, but the defendant’s sales amount claimed by the plaintiff is for the entire navigation system, so it is virtually impossible to accurately calculate the proportion of the interface module and there is no basis for considering the proportion as 100% as the plaintiff claimed. Therefore, in the case where a part of the product is related to the infringement of trade secrets when calculating the number of damages, although the amount of damage has to be recognized under paragraph 5 of the same article, the contribution rate of trade secrets to the total profits obtained by the infringer from producing and selling the product should be determined by comprehensively considering whether the part related to the infringement of trade secrets is essential, its technical and economic value, and the proportion of the total composition or price, and 6.7 billion KRW was recognized as compensation for damages caused by infringement of trade secrets that occurred until March 2012.

The plaintiff and the defendant appealed but rejected, by citing the legal principles discussed by the district court to see that in the light of the principle of equity, the establishment of a starting point for confirming the scope and end of the trade secret protection period determined through the recognition of the facts on the trade secret protection period, and the recognition or ratio of the facts on the contribution part and degree of the trade secret belong to the full authority of the factual review unless it is recognized as remarkably unreasonable.

85) Where a person who has been infringed on business interests due to unfair competition, violation of Article 3-2 (1) or (2), or infringement of trade secrets claims compensation for damages under Article 5 or 11, If a person who has infringed on business interests has received profits from the infringing act, the number of such profits shall be estimated as the number of damages of the person infringed on business profits.

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Section 4. Diffusion of Culture Respecting Intellectual Property

The Korean government is actively engaged in various online and offline educational and promotion activities for the public, including for students, to raise awareness of the protection of intellectual property rights in each field of IP. Policies are being implemented to foster a culture of respect for IP by different institutions for each field: (a) industrial property rights - the KIPO and the KIPPA; (b) copyright - Ministry of Culture, Korea Copyright Commission, and Korea Copyright Protection Agency; (c) trade secrets - the KIPO, Ministry of SMEs, Trade Secret Protection Center, and Korea Foundation for Cooperation of Large & Small Business, Rural Affairs; (d) new plant varieties - Ministry of Agriculture and Korea Seed & Variety Service; and (e) genetic resources - Ministry of Environment.

1. Industrial Property Right

According to the Survey on Awareness of Protecting 2019 conducted by the KIPO through the KOIPA, 27.9% of the respondents said that the number of counterfeit product purchases decreased recently, which is a big difference from 4.5% of respondents who said that the number of counterfeit products increased. Quality and customer service issues are the biggest reasons for the decrease in the number of purchases, but the government’s countermeasures against counterfeit products and promotion activities have some effect (26.1%) on the reduction of consumers’ consumption of counterfeit products.

In a survey concerning awareness of consumers on counterfeit products, a response of 86) “stronger regulation is needed against their producers/sellers (78.5 points) ”received the highest points among five possible responses.

86) The score is obtained by converting the survey score on a scale of 5 into a scale of 100.

166 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 167 68.4 62.8 [Unit : point] [Unit : point] 73.1 65.7 2019 (n=1,500) 2019 (n=1,500) Contests for Contests protection of IP of protection 67.3 61.3 Continuous education education Continuous damage to consumers damage to on counterfeit illegality/ on counterfeit 2018 (n=1,500) 2018 (n=1,500)

68.8 71.7 72.3 71.2 awareness 67 as blogs and SNS 67.3 Strengthen publicity publicity Strengthen to transform consumer consumer transform to Promotions online such Promotions 2017 (n=1,500) 2017 (n=1,500) 68.7 77.8 71.8 81.9 experience Education of IP of Education c u s t o m s c o n t r o l 66.2 72.9 protection based on protection counterfeit products counterfeit Strengthen customs customs Strengthen to prevent the import of the import of prevent to Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter (January, 2020) 」 69.6 68.4 69.2 69.5 citizens 65.1 65.8 counterfeit products counterfeit counterfeit products counterfeit Clean campaign and exhibition of genuine/ of exhibition Penalties for buyers of of buyers Penalties for based on participation of of based on participation

74.5 78.5 Awareness of Effects of Activities to Protect Intellectual Property in Last Three Three in Last Property Intellectual to Protect of Activities Effects of Awareness Awareness of Effects of Activities Eradicate Counterfeit Products in Last Three Three in Last Products Counterfeit Eradicate of Activities Effects of Awareness Years Years

2019 Awareness of Protecting IP of Protecting 2019 Awareness 「 72.2 78.3 campaign Public ads/ 69.2 70.2 counterfeit product product counterfeit and punishment for for and punishment manufacturers/sellers Strengthen crackdown crackdown Strengthen Especially, concerning the score for awareness of effects of various activities to create the 0 0 80 70 60 50 40 30 20 10 30 10 70 50 90 * Source: KOIPA, 2019 Awareness of Protecting IP (January, 2020) of Protecting 2019 Awareness KOIPA, * Source: advertisement advertisement campaign (74.5 points)” and “online community promotion such as blogs and an increase. showed SNS (71.7 points)” 3-4-2] [Figure culture culture of respecting IP, offline activities such as “experiential education for protecting IP (68.5 points)”declined compared to the previous year, but online activities such as “public service * Source: KOIPA, KOIPA, * Source: [Figure 3-4-1] [Figure 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

1) Raising Awareness of Industrial Property Rights

The KIPO has selected and managed a general IP advancement school since 2017. In 2018, the number of schools selected and managed as general IP advancement schools increased to 22, and in 2019, 23 schools were selected as the advancement schools. In 2018, the General Intellectual Property course was introduced as an optional high school course, and in 2019, the number of schools that adopted the General Intellectual Property course increased to 46 which is a significant increase from previous year of 26.

[Table 3-4-1] High Schools Selected as Advancement Schools for General Intellectual Property and High Schools that Have Adopted the Course in the Last Three Years

2017 2018 2019 22* 23* No. of Schools *13 regular high schools, *14 regular high schools, Selected· 9 2 special high schools, 1 special high school, Managing 6 invention specialized schools, 6 invention specialized schools, 1 general specialized school 2 general specialized schools Years of Experience Total 5 time (58hrs) Total 7 time(150hrs) Total 8 time(138hrs) for Teachers 46* No. of Schools *34 regular high schools, Adopted the - 26 3 special high schools, Course 6 invention specialized schools, 3 general specialized schools

* Source: KIPO

The KIPO also selected universities to offer IP education from a pool of all the four-year universities nationwide, provided regular IP courses, and offered convergence education. 87) In 2019, the courses on IP were offered in 17 universities including Geumo University of Technology, Kookmin University, and Kyunghee University. Furthermore, as the competition for IP rights between countries and companies intensifies, KIPO has provided professional degree programs at the Korea Advanced Institute of Science and Technology (“KAIST”), Hongik University, Korea University, Dankook University, and Dongguk University for personnel such as corporate IP personnel to cultivate professionals so that they can effectively respond to domestic and foreign lawsuits. Along with the existing IP degree program, a four-month short- term education course was introduced to reflect the new demand in the industry, convergence

87) Geumo University of Technology, Kookmin University, Kyunghee University, Andong University, Mokwon University, Gunsan University, Daejin University, Dong-A University, Seoul Science and Technology University, Yonsei University, Yeungnam University, Jeju University, Sungkyunkwan University, Hanseong University, Kyungsung University, Soongsil University, and Hanyang University.

168 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 169 Contents samples brand each for Comparison of counterfeit vs genuine goods by using real by using real goods vs genuine of counterfeit Comparison products identify counterfeit on how to of booklets Distribution owners trademark from trends infringement Sharing of the latest IP theory (law firm) studies and cases owners · · · · Training for identification of counterfeit products by trademark by trademark products of counterfeit identification for Training Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 512 Recipients Seoul Customs (39) Seoul Customs (36) Busan Customs (39) Busan Customs (36) Daegu Customs (44) Gunsan Customs (21) Incheon Customs (41) Daejeon Customs (17) Incheon Customs (36) Incheon Customs (40) Incheon Customs (40) Incheon Customs (40) Gwangju Customs (53) Pyeongtaek Customs (30) Training on Counterfeit Detection for Customs Officers in 2019 Officers Customs for Detection on Counterfeit Training - Date 11.20 12.18 7.4 ~ 5 7.4 6.3 ~ 4 11.7 ~ 8 11.7 12.5 ~ 6 9.19 ~ 20 6.13 ~ 14 12.9 ~ 10 6.27 ~ 28 6.20 ~ 21 8.29 ~ 30 10.28 ~ 29 12.19 ~ 20 9 4 5 6 7 8 1 2 3 Meanwhile, in order to strengthen capabilities of customs officers, the Korea Customs Service Customs the officers, of Meanwhile, in Korea capabilities customs order to strengthen In addition, the KIPO has been managing a “customized program” that differentiates 14 10 11 12 13 No Total * Source: Korea Customs Service Customs Korea * Source: conducted conducted training on identifying genuine and fake products by brands a total of 14 times at officers. 512 customs for offices eight customs 3-4-2] [Table strategies for strategies SMEs in Korea. In addition to this, customized training was provided for business practitioners in cooperation with related ministries and specialized organizations such as the industries. and the 4th industry-related the needs of the startup to Ministry of SMEs according etc. etc. to train standard patent experts and the industry-academia cooperative IP competitions, such as the University Creative Invention Competition to raise awareness of IP. It is also providing customized IP education for each technology field for enterprises in the business incubation center and customized education such as domestic and international filing education education focused on practical cases was developed and operated by reflecting the needs of SMEs. manpower, research manpower, prospective research attorneys, for patent content educational 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Furthermore, the KIPO has held invention promotion events such as invention competitions and invention festivals through local governments to continuously raise awareness of IP among the public, businessmen, and local government officials and operated IP managers’ clubs and local government policy councils to create an environment for reinforcing voluntary cooperation.

Seoul Metropolitan City operates an education program to raise awareness of IP rights and methods of technology protection for Seoul citizens and SMEs located in Seoul. Busan Metropolitan City provided a total of four sessions of IP training in 2018 for the socially disadvantaged, the impoverished including the handicapped, children from impoverished families, females with low income, and conducted an education program for IP for 20,653 elementary/middle/high school students. Busan also held workshops for government employees to improve their understanding of IP and encourage their vocational abilities.

Incheon Metropolitan City provided IP training for local government employees, as part of efforts for promoting vocational abilities of employees at the local governments. Gwangju Metropolitan City operated a “visiting IP academy” for local children and an IP science invention camp for elementary school students as the demand for education and experience events related to the invention and IP increases.

Gyeonggi-do has established a pool of IP experts to provide training to prevent technology takeover and technology protection by SMEs in the province. Gyeonggi-do also has provided IP counseling and education for the economic and social underprivileged and on-site customized IP education for employees of SMEs, and has been establishing a network to exchange IP policies and information for municipal and county public officials. Jeollabuk-do provided training for SMEs and social businesses with the deficient IP competitiveness in the region while Jeollanam-do hosted IP workshops for government employees. Gyeongsangbuk-do also, reflecting the demands from businesses frequently, provided customized general and intense IP training for businesses by paying a visit and annually hosted IP workshops for government employees, in efforts to educate IP operation policies of the KIPO.

Gyeongsangnam-do is collaborating with relevant organizations to host annual informative sessions and to provide visiting consultation and IP protection system. Chungcheongnam- do has put efforts to promote regional government employees’awareness of the IP and to

170 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 171 15 2019 [Unit: times] 12 2018 9 2017 4 2016 7 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 2015 Years Five in the Last Campaigns Nationwide on Number of Status Category Nationwide Campaign Nationwide B) Essay Contest on IP-related Failure Cases Failure on IP-related Contest B) Essay the actual use in 2019 to cases failure on IP-related contest held an essay The KIPO and KIPPA In the consumer campaign, the general pubic including teenagers and college students In the seller campaign, a focus was made on encouragement of voluntary participations The KIPO and KOIPA held a nationwide campaign tour to promote protection of IP for general general for IP of protection promote to tour campaign nationwide a held KOIPA and KIPO The 2) Promotions for Protecting Industrial Property Right Property Industrial Protecting for 2) Promotions Campaigns A) National Sejong Special Self-Governing City opened the Sejong Intellectual Property Center in 2019 by by local small business owners, in areas with frequent distribution of counterfeit products, to protect the IP rights. In these areas, promotional materials to raise awareness and respect of the IP rights were distributed, and efforts were made to explain illegality of sales of counterfeit governments. with local in cooperation products, participated participated in street activities with their own posters, slogans, and survey boards on the topic media. on social their experiences and posted protection of IP rights * Source: KOIPA * Source: consumers and sellers. and consumers 3-4-3] [Table IP training and provide high-quality IP courses. and provide IP training and tried to spread awareness of IP in the region by providing IP management expert training to to training expert IP management providing by of IP in the region awareness spread and tried to Jeju City has designated Self-Governing of SMEs’ IP. Jeju Special the competitiveness strengthen National University as a leading IP university until 2021 to develop human in resource charge of strengthen strengthen the supporting policies and to implement IP friendly atmospheres. The Chungnam IP Leaders Conference was held for the first time on November 5, 2019, for local government officials, related organizations, industry-academia cooperation groups, and companies to the region. among IP entities in and cooperation exchange strengthen 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

experiences described in the essays in educational and public relations content and policy establishment for IP protection.

A total of 20 essays were received in this contest on the subject of difficulties or damages incurred as result of company’s own or other company’s IP such as patents, trademarks, designs, and trade secrets, and a total of five essays were finally selected as the winning essays. The award-winning essays will be produced as a booklet and distributed to SMEs, ventures, and startups which are vulnerable to the protection of IPRs and to spread the importance of IP protection.

C) Production of Public Ads and Use of Social Media

The KIPO and the KOIPA produced contents that can help the public understand the problems of counterfeit products and the importance of IP protection.

[Figure 3-4-3] Industrial Rights Protection Ads Contents

Public ads video Blog and SNS contents

* Source: KOIPA

The KIPO and the KOIPA broacast a message to promote awareness of IP protection policy and the need for use of original (genuine) product to various media outlets such as TV broadcasts and YouTube, which has a wide audience base; theaters, subway stations, media boards within the industrial complex for SMEs and major businesses, which has a large in- person audience base; and radio programs, which has a wide listening base among commuters.

In addition, through the use of blogs and social media, the KIPO is trying to strengthen communication with online community users. In 2019, various media, such as public transportation means, radio broadcasting, Internet, and social media, were used to promote the IP rights dispute settlement system.

172 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 173 64 29,905 2019 5,738,249 [Unit: times, person] 41

31,381

2018 5,576,669 88) 606 28,521 2017 5,188,905 30 by the Ministry of Culture and the Korea 18,992 89) 2016 4,691,232 100 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 14,921 2015 4,239,470 (annual total) 88) .9p (95% confidence .9p level).(95% confidence They were asked to apply for Visiting Classes on Copyright by the Copyright Korea ۪ Category Right Property on Industrial Protection IP Rights for Activities Public Ads The number of people Blog visitors (annual total) Blog visitors In addition, the Comprehensive Copyright Index for those students experiences copyright Copyright Index is an average of Copyright Awareness Index indicating how correct the youths the youths correct how indicating Index Awareness of Copyright is an average Index Copyright According According to the Copyright SurveyPerception The number of “those interested in social media” refers to the total of the number of the following: followers of tweeters, the Korea Gallup survey, 2019 Awareness on Intellectual Property of Elementary/Junior High/High School Students (2019, likes of Facebook, and those using Kakao Story and persons receiving messages. receiving and persons Story and those using Kakao of Facebook, likes investigated by PMI). In 2019, parent group consists of 9,826 elementary, junior high and high school students with the sampling error of Commission and from this pool of students, a valid sample was reviewed and investigation was executed before they received training.

interested in the SNS interested 88) 89) training training was 84.8 points, indicating that it is 4.6 points higher than the score of 80.2 for those with no such training. In this regard, Copyright training by the Ministry of Culture appears to of copyright. on their awareness based on students impacts had the great have Perception Index was Perception 83.6 points, an increase of 1.1 points from the previous year, reaching the of all time. score highest are are in terms of their awareness of copyright and Copyright Index Perception asking youth’s use judgment to correct of on Copyright. related values In 2019, the Copyright Index Awareness was 80.3 points, which was reduced by 0.4 points from the previous year but the Copyright 2. Copyright Copyright Commission, the Copyright Index of Adolescents steadily increased since 2013 and date. to score 2019, the highest out of 100 in 81.9 points reached * Source: KOIPA * Source: [Table 3-4-4] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Figure 3-4-4] Comprehensive Copyright Index of Teenagers in 2019 81.6 81.9 82.5 83.6 90 78.6 80.1 81.0 78.6 79.2 79.7 80.8 80.7 80.7 80.3 77.5 79.5 81.3 73.8 75.1 74.1 76.4 74.9 77.4 75.3 72.9 73.7 71.1 67.4 70.2 71.2 70

0 Copyright Index Copyright Perception Index Copyright Awareness Index 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

「」 * Source: Gallup Korea Research, Elementary, middle, and high school Students’Copyright Awareness Survey Report (2019, investigated by PMI)

1) Education for Awareness-Raising of Copyright

A) Offline Copyright Education

The Ministry of Culture and the Korea Copyright Commission are offering Hands-on Copyright Classes, thorough which teachers provide experience-based copyright training to raise students’awareness on copyright. The program started with 20 classes in the capital area in 2006, and a total number of classes reached 292 nationwide in 2019.

[Table 3-4-5] Hands-on Copyright Classes Conducted in the Last Five Years [Unit: lecture, person]

Category 2015 2016 2017 2018 2019

Class 294 283 290 308 292

Recipient 12,762 11,558 10,890 11,079 11,499

Teachers 297 283 290 200 166

* Source: Korea Copyright Commission

The Visiting Courses on Copyright (students) is a copyright education program which has instructors visit elementary, middle and high schools and offers lectures to enhance copyright awareness to teenagers. In 2019, there were 9,538 courses.

174 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 61 175 280 9,538 2,848 14,984 332,620 2019 2019 2019 [Unit: times person] [Unit: times, person] [Unit: times, person] 47 292 1,962 14,739 11,207 392,626 2018 2018 2018 27 327 1,140 14,487 10,636 416,027 2017 2017 2017 25 379 1,066 10,418 20,003 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 396,460 2016 2016 2016 12 708 286 8,940 15,563 393,063 2015 2015 2015 Visiting Courses on Copyright for Artists (Adults) in the Last Five Years Five in the Last (Adults) Artists for on Copyright Visiting Courses

Years Five in the Last (Adults) on Copyright Visiting Courses Years Five in the Last (Students) on Copyright Visiting Courses Courses Courses Courses Category Category Category Recipient Recipient Recipient The Visiting Courses on Copyright(Public) has expanded its course offerings to the education The ‘Visiting Courses on Copyright for Artist’ expanded its course offerings to nationwide since since nationwide to offerings course its expanded Artist’ for on Copyright The ‘Visiting Courses The Visiting Courses on Copyright (adults), a customized education program for companies, community (Education Office or Training Center) since 2019, and 42 courses were offered to 3,945 to offered were courses 42 and 2019, since Center) Training or Office (Education community students. * Source: Korea Copyright Commission Copyright Korea * Source: 2016. In 2019, there were a of total 47 courses for 2,848 people, an increase of 45.19% from the year. previous 3-4-8] [Table * Source: Korea Copyright Commission Copyright Korea * Source: information that can be useful at workplace. In 2019, 14,984 people participated in 280 courses. people participated In 2019, 14,984 workplace. be useful at can that information 3-4-7] [Table * Source: Korea Copyright Commission Copyright Korea * Source: private and public organizations, cultural artists, just to name a few, on practical copyright [Table 3-4-6] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-4-9] Visiting Courses on Copyright for Adults (public) in the Last five Years [Unit: times, person]

Category 2015 2016 2017 2018 2019

Coureses - 23 28 21 42

Recipient - 1,133 1,740 2,709 3,945

* Source: Korea Copyright Commission

University-partnered Creative Personnel Copyright Professional Courses, run by the Korea Copyright Commission, aims to train creative experts with copyright knowledge in various culture and arts fields by providing copyright courses in universities. Gyeongsang National University, Sangmyung University, Sookmyung Women’s University, and Hongik University were selected to offer these professional courses, and in 2019, a total of 1,248 students attended the courses.

[Table 3-4-10] University-Connected Creative Personnel Copyright Professional Courses in the Last Five Years [Unit: lecture, person]

Category 2015 2016 2017 2018 2019

Courses - 11 24 26 27

Persons educated - 711 1,203 1,097 1,248

* Source: Korea Copyright Commission

Jeollanam-do had its officers visit local SME facilities to inspect illegal software duplication in order to prevent infringement of illegal software copies and executed training courses to raise awareness of software asset value so as to try to establish a culture of fair use of software.

B) Online Copyright Education

The Ministry of Culture and the Korea Copyright Commission offered online copyright education courses tailored to the needs of various target audience, such as teenagers, industrial workers, college students, general public, parents, and public sector workers, through the remote copyright academy courses.

The online copyright education for teenagers aimed to promote students’ interests in copyright issues by providing cases that they may frequently encounter in daily lives.

A course titled “I Will Make Friends with Copyright (intended for-lower grade elementary students)” is a basic course to help understand the concept of copyright, and another courses

176 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 177 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter The educational courses for the parents of elementary and secondary school children The educational courses for the public is designed to help the public deal with copyright The educational courses for college students are titled “plagiarism and copyright The training course for industrial workers offers courses by job category and job description Online copyright education courses for adults classifies the type of students into industrial A course A titled course at Copyright School “Must-Know Stories (intended for middle and high school focus focus on having the parents understand copyright and recognize the need for proper use of the copyright works and copyright protection so that children can attain proper awareness of related issues related in their daily lives, and the which courses, are based on Q&As of related copyright and Internet- – Office-Work, Daily issues topics Life, in everyday course three divided into are life, Entertainment. precautions precautions related to the use of works such as assignments and thesis writing during college effectively to knowledge and deliver relevant examples practical through life students) (graduate such as plagiarism. disputes copyright prevent delivers delivers specialized knowledge such as the prevention of copyright disputes tailored to the activities. industrial relevant infringement” and “copyright note for college students.” These courses offer copyright for each of them. of them. each for such as the 4th industry, export industry,game, publishing, (preliminary)broadcasting, start-up, music, library, design, software, mobile, content, cartoon (webtoon), and day care teacher. It correctly and easily. correctly experts, students, college general parents, and public workers by providing different curriculum music, movies, characters, and games that are easily accessible. easily are that and games characters, music, movies, students)” deals with copyright etiquette that must be observed at home, school, and public offices, and offers contents that students may be curious about, such as how to use works named “I Will Make Friends with Copyright (intended for higher-grade elementary students)” is a to course tailored the level of elementary school and junior high school that students teaches about copyright works that need to be protected and correct way to use them. The course such by examples offering as text, the protection need copyright for understand helps teenagers 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

copyright and can provide discussion and proper understanding about copyright at home. There are two courses offered, and they are Basics of Copyright (intended for elementary parents) and Basics of Copyright (intended for middle and high school parents).

The copyright educational courses for the public sector, including government, local governments, and public institutions, the employees provides information related to copyright tailored to the characteristics of the field to improve the ability of employees to respond to copyright issues in the public sector, such as copyright restrictions for non-profit purposes. The courses are divided into various topics - Basic and Practical Subjects for Public Organization Workers, Copyright Act Subjects for Practice by Government Officers, and Understanding of Public Agencies Software Copyright and Asset Management. In particular, it is mandatory for the person in charge of software management in public institutions to receive related training at least once a year according to the Regulations on Software Management of Public Organizations to strengthen software protection and management skills.

[Table 3-4-11] Online Copyright Education Completed in the Last Five Years [Unit: person]

Category 2015 2016 2017 2018 2019 Adolescents 2,603 2,504 1,085 322 130 Industrial workers 14,869 16,545 22,790 28,771 25,610 Undergraduates 3,917 5,544 3,979 1,806 1,695 Public 143 185 231 295 541 Parents 41 31 28 24 55 Public Sector 1,385 965 3,165 4,474 8,499 Total 22,958 25,774 31,278 35,692 36,530

* Source: Korea Copyright Commission

C) Strengthening the Foundation of Copyright Awareness and On-the-Job Training

The Copyright Training for Provincial Education Offices on Copyright is planned for copyright- related officers in the provincial education offices and education-supporting organization to share the need for training and boost cooperation and expansion of copyright related education. The courses are intended to motivate officials who are in charge of providing education,information, and training on copyright to raise awareness to students in schools. In 2019, a total of 86 persons participated in the courses.

178 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 179 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter The Remote Copyright for Training course Teachers has been operated for distance The The Copyright for Training is Teachers a course designed for teachers to understand the The course on Copyright Training for The TV on course and Copyright Radio Training Writers is for writers of TV dramas, shows, The purpose of the Copyright Writers for Training course Textbook is to provide professional two two 3-credit courses (45 hours) for the remote copyright training for teachers to strengthen copyright awareness and capacity by expanding teachers’ copyright education opportunities and to effectively conduct youth copyright education and counseling. A of total 12,401 teachers training. copyright completed copyright copyright training courses specialized for actual school environments. The Korea Copyright Commission has officially certified Institute by Training Distance the Ministry of Education since July 2010. As of 2019, it offers seven 1-credit courses (15 hours), one 2-credit course (30 hours), importance importance of copyright, so that they can guide their students in properly utilizing a right. The program aims to improve teachers’ abilities by providing lectures and contents on legislation, theories, and practices regarding copyright targeting elementary and middle school teachers the program. completed of 78 trainees In 2019, a total nationwide. related disputes and related among film writers, broadcasters, and companies to help raising copyright in the course. participated of 30 persons In 2019, a total awareness. in the course. and TV scripts, and those who are active in broadcast sectors and have a strong influence on the general public. Its purpose is to prevent plagiarism of broadcast content and copyright- understanding understanding of copyright for writers, and to teach them precautions when writing textbooks, and have them effectively include contents on copyright in textbooks, thus building a strong participated persons 22 of a total 2019, In curriculum. regular the in education copyright for basis 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-4-12] Completion on Copyright Training Course in the Last Five Years [Unit: person]

Category 2015 2016 2017 2018 2019

Training for Provincial Education Offices 45 60 99 86 70

Training for Textbook Writers 54 36 24 28 22

Training for TV and Radio Writers 21 22 31 24 30

Training for Teachers 40 74 50 66 78

Remote Training for Teachers 9,267 10,473 8,648 5,015 12,401

Total 9,427 10,665 8,852 5,219 12,601

* Source: Korea Copyright Commission

The Program for Improving Ability Related to Copyright via Consortium for HRD Ability Magnified Program is intended to improve copyright related legal knowledge and practical abilities of those who work in the fields of copyright and other industries. In 2019, a total of 471 trainees completed the program.

[Table 3-4-13] On-site Copyright Job Competence Course in 2019 [Unit: times, person]

Institu- Practiced by category and contracts Beginner’s Use of Plagi- Dispute tional Case Broad Course Media Publi- Total course SW arism practice Issues Practice -casting/ Music Internet Design cation Pratice Video Ses- 3 1 2 2 1 2 2 1 2 2 1 1 20 sions Com- 77 20 37 49 30 52 49 15 57 47 23 15 471 pleted

* Source: Korea Copyright Commission

The KCOPA provides a course on the software protection training for software managers to improve their abilities to autonomously manage software in the public sector. In 2019, there were a total of 26 courses of nationwide training in various regions including metropolitan areas, Gyeonggi-do, Gangwon-do, Chungcheong-do, Gyeongsangnam-do, Gyeongsangbuk- do, Jeollanam-do, Jeollabuk-do, and Jeju. In 2019, a total of 2,286 trainees participated in the training. Moreover, they visited the organizations that made requests for software copyright training for officers course, in order to ensure every officer of public organization beside software managers can legally use software based on good understanding of copyright.

180 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 6 181 482 2019 [Unit: person] 10 692 2018 30 933 2017 26 1,979 2016 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 23 2,343 2015

Education System Prosecution Conditional Suspension of Adults Category Adolescent of Prosecution of Educational Courses on Protecting Copyright in Connection with Conditional Suspension Conditional Suspension with in Connection Copyright on Protecting Courses Educational A) Online/Offline Periodic Campaigns Under the slogan, “We commend you for using it correctly,” the Ministry of Culture and 2) Promotions for Protection of Copyright of Protection for 2) Promotions The Conditional Suspension of Prosecution System by the Ministry of Culture’s function The courses on Conditional Suspension of Prosecution System for teenagers decreased D) The Conditional Suspension of Prosecution System is a course offered to minor offenders, campaigns campaigns where all citizens can participate. The online campaign was changed to a 360° virtual reality event in the form of an event called Thumbnail Week Campaign in the existing social media channels, and was conducted 13 times. In addition, the offline campaign was the Korea Copyright Commission performed a total of one on/offline copyright periodic * Source: Korea Copyright Commission Copyright Korea * Source: transferred to the Korea Copyright Protection Agency on January Agency 1, 2020. Protection Copyright the Korea to transferred 3-4-14] [Table steadily since 2015 since but a steadily sharp from 2019. decrease In 2019, the number the of adults attending year. the previous from 482, a 30.3% decrease at stood course said educational adjustment plan for Korea Copyright Commission-Korea Copyright Protection Agency was a day throughout the year targeting offenders who the Public Prosecutors’ Office requests of suspension of prosecution. Commission on the condition Copyright the Korea to education education education and to prevent repeated crime. To minor offenders with no priors and accidentally violated the Copyright Act are presented with one-time opportunity to attend the copyright educational course, and to those who have the completed course, the court grants suspension of prosecution. The courses on Conditional Suspension of Prosecution is operated eight hours who committed copyright infringement, to provide them an opportunity to receive copyright 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

held five times in connection to those special days: World’s Book and Copyright Day (April), Gyeonggi International Webtoon Fair (May), Seoul One Person Broadcasting Media Show (July), Second Intellectual Property Day (September), International Copyright Technology Conference (November).

The Ministry of Culture and the KCOPA created webtoons that can help the public to understand what copyright is. Focusing on the pubic who are in their 20s and enjoy various types of works, they offered a series of 20 cartoons called IP Chit-Chat on popular webtoon platforms presenting cases of copyright protection consulting, and how to support the rights of copyright holders and to prevent damages to users. It was produced as a comic book and distributed to a total of 1,062 (1,100 copies) at universities, local governments, and elementary and secondary schools nationwide, and is posted for free download on the website and blog of the protection center.

[Figure 3-4-5] IP Chit-Chat, Webtoon on Copyright Protection

* Source: KCOPA

B) Production of Promotional Contents

The KCOPA has launched a Copyright Protection Report Unit consisting of 20 college students and has been conducting copyright protection advertisement activities. The KCOPA posted a total of 195 pieces of content prepared by the Report Unit on its official blog and social media. Also, in 2019, the KCOPA created a copyright protection character called “Baro” to intuitively and symbolically express their determination to protect copyright and to make a closer connection with the public in this drastically evolving copyright environment.

182 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 183 the Right Standing signboard Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Emoticon “Baro” Protection, Copyright of Character 1) Educations and Promotion for Protecting Trade Secrets Trade Protecting for and Promotion 1) Educations In addition, the copyright webtoon, which drew a lot of interest from users with 1.8 million The Korea Copyright Commission produced and distributed various promotional contents The to Copyright Korea Commission contents and promotional various produced distributed The KIPO operates a company-visit training program where the experts on trade secrets from from secrets the on where experts trade program training a company-visit The KIPO operates program program for trade secrets managing employees. The Center held 60 visit training courses, two regular training courses for each the first and second half of the year, 35 regional information in 2019. of 3,402 participants in a total resulting seminars, and two courses, the Trade the Secret Trade Protection Center go to the company, who requested its services, to provide and system management plan. The the protection Center secrets also trade concerning training provide regular training on trade secret regional protection, information courses, and an online 3. Trade Secret and Industrial Technology and Industrial Secret 3. Trade views in 2018, was produced and distributed again in 2019 under the theme of 7.24 million views. and recorded You, to Be Attracted to Reason raise raise awareness of copyright. Episode videos were produced on the subject of copyright issues that anyone can experience at least once and released through the Commission’s YouTube channel. * Source: KCOPA * Source: [Figure 3-4-6] [Figure 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-4-15] Trade Secrets Training by the Trade Secret Protection Center in Last Five Years [Unit: times, person]

2015 2016 2017 2018 2019 Category Times Participants Times Participants Times Participants Times Participants Times Participants Visit 39 1,922 37 2,242 54 2,193 44 1,406 60 1,305 training Periodic/ in-depth 4 71 1 30 1 41 1 31 2 98 training Information session/ 36 2,490 31 1,570 38 1,762 41 2,031 37 1,999 seminar Total 79 4,483 69 3,842 93 3,996 86 3,468 99 3,402

* Source: Trade Secret Protection Center

A public relations booth was operated at large-scale events, such as the Franchise Seoul Fair, 2019 great women inventor EXPO, and Daejeon International Intellectual Property (IP) Festival, to provide guidance, public relations, and legal counseling for the business secret protection system and support. Publicity was promoted through mass media, such as TBS FM and the Seoul Shinmun electronic board, to increase public awareness of the protection of trade secrets and promote the use of support projects. The Trade Secret Protection Center held a strategic seminar to protect trade secrets of overseas companies in August 2019 to provide a trade secret protection system and conflict response guide for China, Japan, and Vietnam and provide a forum for information exchange. 2) Educational Courses and Promotion for Protecting SMEs Technology

The Ministry of SMEs and Startups and the Large and SMEs’ Agricultural and Fishery Cooperation Foundation in 2019 held a total of 119 technology protections training courses and informative courses for SMEs, resulting in a total of 18,955 participants. The number of training and attendance for executives and employees of large corporations and public institutions and suppliers has steadily increased especially since the announcement of measures to eradicate takeover of SME technology in February 2018.

184 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 185 318 297 3,416 Total 74,616 87,152 11,921 71,200 12,536 - 610 297 4,492 4,195 2019 14,463 18,955 13,853 [Unit: times, person] - 86 831 3716 3,630 2018 16,624 15,793 20,340 - 117 607 Participants 1,796 1,913 2017 17,710 18,317 20,230 - 115 629 2,415 2,300 2016 16,793 16,164 19,208 - - - - 739 7,680 8,419 8,419 2015 7 6 74 147 428 160 502 662 Total - 6 17 55 38 58 64 119 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 2019 - 2 41 39 19 103 163 122 2018 - Times 3 30 33 15 124 109 157 2017 - 2 10 20 22 118 140 108 2016 - - - - 70 13 83 83 Technology Protection Training/Information Courses by the Ministry of SMEs and of the Ministry by Courses Training/Information Protection Technology Startups in Last Five Years Five in Last Startups 2015

of uni- Total Total cities main Pros- -yees (High tion of nesses Impro- emplo -ment/ /public organi- organi- zations zations Govern school, Circula- versity) pective pective vement abilities expert’s expert’s relevant Big busi- Total In addition, it provided 573 people from SMEs and business startups with educational courses courses with educational SMEs and business startups 573 people from In addition, it provided Category program program for 102 persons, including CEOs of SMEs to strengthen the technology protection capabilities of SMEs. It appointed the Korea Management Association in 2019 to provide the Ability Management Program to 358 employees from SMEs such as security officers. Besides a training program for prospective entrepreneurs was developed through partnerships with the designed to train experts specializing in the protection of technologies in 2019. The Ministry of SMEs, KAIST, the KIPO, and the Court Patent to collaborated offer a top-level IP strategy * Source: Ministry of SMEs and Startups * Source: [Table 3-4-16] [Table Education Information sessions 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Korean SMEs and Startup Agency and the KOSME. This program was attended by 113 persons in 2019.

[Table 3-4-17] Technology Protection Training for Big, Small and Medium Company Employees by the Ministry of SMEs and Startups in the Last Five Years

Category 2015 2016 2017 2018 2019 Total

AIP - 104 110 98 102 414

AMP 2,156 2,026 493 398 358 5,431 Business - - - 44 113 157 starter Total 2,156 2,130 603 540 573 6,002

* Source: Ministry of SMEs and Startups

The Ministry of SMEs is mamaging a variety of support projects, from the prevention of technology leakage to post-relief for SMEs. The Ministry produces and distributes promotional materials every year such as a “Damage Case Book” that provides countermeasures for each type of dispute, a “Technology Protection Guideline” that guides through the 10 key rules for technology protection, and an “NDA Guideline,” which must be executed by the parties in a business relationship. Also, a technology protection webzine, containing various information on technology protection policies, issues, and events of the Ministry of SMEs, was published on a pilot basis and distributed twice a year to executives and employees of large and small businesses, technology protection experts, and related organizations.

The Ministry of SMEs also hosted annual conferences to share technology protection plans, supporting policies, strategies, and cases and operated an exhibition, and gave awards to contributors.

[Table 3-4-18] Technology Protection Conferences Held and Contributor Awards Given by the Ministry of SMEs and Startups in the Last Five years

Category 2015 2016 2017 2018 2019 Total

Conference (person) 96 281 270 278 282 1,207

Awards to Contributors (items) 24 24 24 23 27 122

* Source: Ministry of SMEs and Startups

186 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 187 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Infringement Dispute Infringement Educational Educational Courses and Promotion for Preventing Varieties Protection Right

The Ministry of Environment conducted services for small and medium-sized venture The Ministry of Environment has analyzed and provided the latest overseas information, The Ministry of Environment has issued publications of guidance on international trends 2) Educational Courses and Promotion of Enforcement of Genetic Resource Act Resource Genetic of Enforcement of Courses and Promotion 2) Educational The Ministry of Agriculture also launched the International Seed Life Education Center, a The Ministry of Agriculture and the Korea Seeds and Variety Service provided education 1) thousand registered) called ‘Genetic Resource Information Management Center.’ Management Information Resource ‘Genetic called thousand registered) companies and research institutes 47 times in 2019 and held several on-site consulting and genetic genetic resources in India and South Africa. The Ministry of Environment also conducted promotional activities with excellent user accessibility, such as publishing 20 newsletters including the latest trends in the Nagoya Protocol at home and abroad and providing the latest information on the Nagoya Protocol through social media, Kakao Channel Talk (over 15 such as ABS regulatory procedures, and related policies of major parties, such as Indonesia (46 countries in 2019), and has published and distributed guides to access and benefit-sharing related related to the Nagoya Protocol and promoted the major contents of the Act to inform the reporting obligations through various media such as newspapers, broadcasting, and social media. specialized specialized educational institution in June 2019 to cultivate experts in the field of seed and life industry. Since July 2019, they have operated 32 training sessions specializing in seeds and 653 people. educated to to about 805 people targeting farmers cultivating grape, peaches, apples, and citrus and and seed companies. seedling companies and Gyeongsan employees, cooperative agricultural and promotion on varieties protection rights for businessmen and farmers who sell or grow varieties. The Ministry of Agriculture has operated an education program for “knowing and properly,” varieties using and protected in 2019, provided nine infringement prevention training 4. New Varieties of Plants of Varieties 4. New 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

seminars to raise industry awareness and solve questions related to ABS in connection with international industry exhibitions such as cosmetics and pharmaceuticals. In addition, an ABS legal support group consisting of experts in legal fields, such as patents and IP rights, was operated to improve the quality of corporate counseling and to meet the needs of companies.

In 2019, 36 online consultations, related to access and profit-sharing of genetic resources, were conducted and 47 on-site consultations were conducted. In July 2019, the Ministry also provided competency training for people in charge of ABS-related tasks such as companies and research institutes. The Ministry of Environment provided support for improving the administrative management system by distributing guidelines for sharing profits of domestic biological resources, collecting approval information for overseas exports by the department, notification of the status of report processing.

[Table 3-4-19] Online Consultation and On-Site Consultation related to Access and Profit-Sharing of Genetic Resources in 2019

Category Online consultation on-site consultation

Total sum 36 (Total 347) 47 (Total 205)

* Source: Ministry of Environment

[Figure 3-4-7] Current Status of Publications and Education for Promotion of the Genetic Resources Act

Procedure Guide for The 1st ABS practical ABS practical manual On-site ABS consultation ABS in India competency training

* Source: ABS Genetic Resource Information Management Center

The Ministry of Environment has promoted overseas training of experts and training by overseas experts by operating four projects to foster experts in unexplored biological

188 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 189 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter on the subject of “Biodiversity and Synthetic Biology” and webinars. seminars and Synthetic and held expert of “Biodiversity on the subject classification classification groups to cultivate human resources related to biological and genetic resources. An international conference was held on October 18, 2019 in support of the above efforts. The Ministry of Environment also has operated two projects to foster experts in response to the Convention on Biological Diversity, published a book after research cooperative by each major 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Section 5. Domestic and International Cooperation Activities for Protection of Intellectual Property

Korea is strengthening the cooperation system between government ministries to protect IP rights through enforcement efforts on IP infringement activities at each distribution level, strengthening punishment for infringement, and establishing a win-win cooperation system. Moreover, public-private cooperation between governments, related organizations, private organizations, such as associations and rights holders, is being actively conducted in various fields, and its role and scope are also continuing to strengthen. These inter-ministerial and public-private cooperation activities are helping to respond to IP infringement and remedy rights more quickly and efficiently.

The importance of international cooperation in the field of IP is increasing as domestic companies are expanding overseas. For this, the government is striving to ensure that the IP rights held by Korean companies can be safely protected overseas by creating a friendly environment for protecting IP abroad through bilateral and multilateral cooperation. As part of these efforts, the government is strengthening cooperation with regional organizations such as the Association of Southeast Asian Nations (ASEAN) and the European Union Intellectual Property Office (EUIPO) as well as major countries in which domestic companies are actively advancing such as the United States, China, and Japan. This allows Korean companies to quickly process IP-related applications and registrations locally and it also supports companies that have entered the region to receive fair protection from IP disputes.

1. Domestic Cooperation System

1) Korea Intellectual Property Network (KIpnet)

The Korea Intellectual Property Network (“KIPnet”), launched on April 5, 2012, is an organization that provides a communication and cooperation channel for government organizations, public organizations, industrial groups/associations, and industry-research-

190 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 191 Commission Commission IP-Copyright 7 conferences Korea Copyright Korea 22 organizations KOIPA IP-Protection 4 conferences 36 organizations Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Utilization · 5 conferences Strategy Agency 61 organizations61 IP-Creation Korea Intellectual property Secretary Organizations and Participating Organizations of 2018 KIPnet of Organizations and Participating Organizations Secretary Category Secretary Participants Activities by Activities Copyright Infringement Infringement Copyright Diversified Diversified Cooperation among Central Administration Agencies for Monitoring Organizations Subcommittees A) Cooperation for Crackdown on Industrial Property Right and Copyright Right Property on Industrial Crackdown for A) Cooperation With regard to infringement on industrial property rights and copyright, the SPO carries Through Through collaborations between government organizations, the best efforts are made to 2) In 2019, the IP Protection Subcommittee, in an effort to find ways to redistribute IP values KIPnet is divided into three subcommittees per each main category of IP, and as of December of IP, and as of December main category per each subcommittees three is divided into KIPnet workshops workshops with related organizations to effectively respond to IP infringement crimes that are becoming more advanced and intelligent and established an education system through the of investigators the expertise strengthen to Institute and Training Research Legal out joint crackdowns on offenders together with relevant ministries including the KIPO and the Ministry of Culture. They have exchanged information through meetings, seminars, and ensure ensure enforcement of IP rights protection policies. Such protection activities are taking place means. offline and online mainly by maintenance such as the establishment of a license fee database system, system, database fee of a license such as the establishment maintenance * Source: The website of the PCIP (www.ipkorea.go.kr) The website * Source: system legal effective improve to ways use, discussed and protection between harmony through subcommittee. subcommittee. The secretary organization in each subcommittee hosts discussion boards and organizations. the participating from opinions and collects workshops 3-5-1] [Table academic academic organization, and provides a discussion board for discovering and discussing the IP in Korea. for agendas main political 2019, a total of 119 participating organizations are active, led by secretary organization in each 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

90) [Table 3-5-2] Results of the Crackdown on the Violation of IP Laws in 2019

Unfair Competition (Game industry, Patent Act, Prevention Act film and video, Utility Model Total Trademark Act (Trade secret Copyright Act music industry) Act, leakage Promotion Law Design Act (domestic and overseas) etc.) Case Person Case Person Case Person Case Person Case Person Case Person Crack 27,399 39,733 4,944 6,540 353 885 11,664 15,831 10,102 15,840 336 637 down Arrest 163 215 14 17 1 1 3 7 145 190 0 0

* Source: Ministry of Justice

The KIPO operates the Center for Reporting Counterfeit Goods and Unfair Competition Act. The Center checks the authenticity of goods with the help of the trademark rights holders, demands online open markets or online shopping malls to remove counterfeit goods related posted contents, and disconnect relevant sites, as well as carries out intensive watch over sellers of counterfeit goods. In carrying out offline crackdown on counterfeit goods, the KIPO makes recommendations of correction to counterfeit goods sellers in cooperation with local governments. The Center also operates a system of cooperation for crackdown on IP rights infringement and holds educational courses designed to enhance the capabilities of the police officers and local government officials.

The Ministry of Culture and the KCOPA operate a System for Reporting Pirated Products where anyone can report online/offline illegal reproductions. If illegal reproductions online are found, a corrective recommendation is sent to the online service provider through the Copyright Protection Review Committee. If an overseas copyright infringement website is found, it can ask the KCC to block access to the website. It also performs a crackdown on manufacturers and distributers of illegal reproductions offline.

90) During the period, there were 115 cases of prosecution and 181 persons (40 cases of arrest, 52 persons).

192 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 193 IP -tion Com- Trade Trade Actions Korean Korean Competi on Unfair mission Related to to Related KOCSC IP Rights Corrections Crackdown on Crackdown Request for ISP for Request Items Infringing Infringing Items Access Blocking Access Police Agency Police and K o r e a n N a t i o n a l Korea Korea Service IP Infringe Customs Customs Prohibition -ment Item -ment Item Crackdown Crackdown Co- Access Access Blocking Business Requests operation KOIPA KIPO IP Division Daejeon) Investigation (Seoul, Busan, Regional Office Regional Office Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Daegu) (Seoul, Busan, Regional Office Regional Office Korea Copyright Copyright Korea Sports Copyright Sports Copyright Sejong, Gwangju, Sejong, Gwangju, improvement of system improvement monitoring organizations relevant Offline crackdown supports Offline crackdown supports Online crackdown Establishment of crackdown plan and plan and crackdown of Establishment supervisionand affiliates and office Regional for system of cooperation Implementation Crackdown Protection Agency Protection Protection Division Protection Ministry of Culture, Culture, of Ministry ▹ Special Judicial Police - For ▹ monitoring - IP infringement ▹ ▹ ▹ ▹ (by Special Judicial Police) Co- Com- gation mands Investi- operation Infringement Copyright On/Offline Monitor to System Office Inspection Supreme In Charge of In Charge Comprehensive IP Comprehensive Investigations with Investigations B) Cooperation for Establishment of International Standard Response System Standard International of Establishment for B) Cooperation On June 20, 2019, relevant ministries came together to discuss to strategies preempt The Korea Customs Service, in connection with the Ministry of Culture, and the National Prosecutors’ Office Prosecutors’ Prosecutors’ Office Prosecutors’ Supporting of Regional Supporting of Regional international standardization in international standardization the era of the 4th industrial revolution and plans to strengthen infringement infringement items imported to Korea, it seized 602,042 counterfeit batteries (1 billion KRW), 90,000 counterfeit famous brand items of clothing (11 billion KRW), 300 counterfeit phone cases and with counterfeit, 1.8 famous characters, million Viagras, 17,000 counterfeit counterfeit watches. Police Agency, Police are efforts by enforcement exercising blocking and cracking down on the import and distribution of products infringing IP rights. As a result, among the total number of IP * Source: Based on the internal data of the KOIPA and the KCOPA of the KOIPA data Based on the internal * Source: [Figure 3-5-1] [Figure 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

cooperation between the government, business, academia, and research institutes throughout the development of international standards. A joint response system to international standards was operated to prepare a preemptive patent strategy, focusing on areas with high urgency to respond, such as blockchain technology, in connection with the International Standard Response Committee operated by the Ministry of Science, and the Ministry of Industry. The International Standards Response Committee and the Korean Intellectual Property Office jointly derived the target product for standard patents and simultaneously supported international standardization (standard technology improvement project) and patent application (standard patent creation project). In 2019, nine standard patents, including printed electronics, automobiles, and bio, were provided support. The Ministry of Science supported domestic experts to actively advance into international standardization organizations as chairmen to secure leadership in official and de-facto standardization. The Ministry also aimed to provided standard technology information and related education and cultivate international standard experts.

C) Cooperation for Trade Secret Protection and Technology Theft Cases

(1) Cooperation to strengthen the protection of Trade Secrets for SMEs

The KIPO supported the establishment of a management system to prevent leakage of trade secrets from SMEs through cooperation with related ministries. The Seoul Metropolitan City is providing a one-stop service for technology protection of SMEs and carrying out supporting projects in connection with organizations related to technology protection such as the Ministry of SMEs, Ministry of Culture, FTC, KIPO, National Police Agency, and Korea Foundation for Cooperation of Large & Small Business, Rural Affairs.

194 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 195 Protection Agency) Protection Accusation investigation Accusation (Korea Intellectual Property Property Intellectual (Korea S u p p o r t i n C o n n e c t i o n Technical Data Storage System Storage Data Technical Business_Korea Foundation for for Foundation Business_Korea Dispute Mediation and Arbitration Mediation Dispute Rural Affairs) (Patent Office_Korea Office_Korea (Patent Affairs) Rural Office, National Intelligence Service, Service, Intelligence National Office, Korea Copyright Protection Agency) Protection Copyright Korea with Related Organizations with Related (Korea Foundation for Cooperation of Cooperation for Foundation (Korea (Ministry of Small and Medium Venture of (Ministry Prevention of overseas IP rights dispute IP rights overseas of Prevention Intellectual Property Protection Agency) Protection Property Intellectual Cooperation of Large & Small Business, & Small Business, Large of Cooperation (Ministry of Culture, Sports and Tourism_ Culture, of (Ministry Large&Small Business, Rural Affairs, KIPI) Affairs, Business, Rural Large&Small Fair Trade Commission, Customs Service) Commission, Customs Fair Trade (National Police Agency, Public Prosecutor’s Public Prosecutor’s Agency, Police (National Public Welfare) infringing articles infringing damage response) judgment,warning, judgment,warning, Insurance Support for Support for Insurance Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Support for crackdown on crackdown Support for Public welfare investigation investigation Public welfare overseas dispute response) dispute overseas Intellectual Property Litigation Property Intellectual (Provisional injunction, lawsuit, lawsuit, injunction, (Provisional (Seoul Special Judicial Police for for (Seoul Special Judicial Police Damage Relief Program Damage Relief Customized consulting (Consulting for (Consulting for consulting Customized the authentication of technology takeover, takeover, technology of the authentication One-Stop Service for Protection of SMEs Technologies SMEs of Protection for Service One-Stop Step-by-Step Support System for the Protection of SMEs Technologies in Seoul SMEs Technologies of the Protection for Support System Step-by-Step Report·consultation Report·consultation and specialists from from and specialists Phone: 02-2222-3856 Online: www.ipseoul.kr Offline: Seoul Startup Hub, Offline: Seoul Startup Infringement Cases and Strengthen Punishment for Infringement for Punishment Strengthen Cases and Infringement Cooperation Cooperation to Lower the Burden of Proof Requirement on Damages in Technology Intellectual Property Center Property Intellectual Consultation Counters Consultation Securing dedicated manpower manpower Securing dedicated (SBA Corporate Support Center) Corporate (SBA Seoul Intellectual Property Center Property Seoul Intellectual Operation of Reporting and of Operation Technology Protection Support Team Protection Technology The Ministry of SMEs, the KIPO, and the FTC to cooperated improve the laws under the (2) Gyeonggi-do is operating a technology protection desk to provide consultation on technology consultation provide desk to a technology protection is operating Gyeonggi-do from Seoul Intellectual Property Center Property Intellectual Seoul from (Analyzing contents of report·consultation) of (Analyzing contents would would allow the parties to the infringement to clarify that their technology is irrelevant to the technology of the company seeking damage. Also, amendments to the law to strengthen ministry. each by in progress technology hijacking are for compensation damage punitive jurisdiction jurisdiction of each ministry to strengthen the legal rights of SMEs. They are promoting to introduce a system for shifting the burden of proof to the party claiming infringement, which and Northern Gyeonggi Police Agency, the Ministry of SMEs, and the Technology Guarantee Fund. In 2019, out of 74 cases of technical protection desk consultations, 18 cases were in organizations. with related cooperation outflow outflow or technology takeover of SMEs. Furthermore, a cooperation system was established such as for with criminal measures the organizations related and Special administrative Judicial Police for Industrial Property, Gyeonggi Branch of the National Intelligence Service, the South * Source: Seoul Metropolitan City Seoul Metropolitan * Source: [Table 3-5-3] [Table 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-5-4] Current Status on the Introduction of Shifting of the Burden of Proof in Technology Protection Related Laws

Legislative task Competent ministries Progress status Ministry of SMEs and Fair Cooperation Act Initiated in Nov. 2018 → Judgement committee held Startups Patent Act Revised in Jan. 2019 →’implemented in Jul. 2019’ Prevention of Unfair KIPO Revision to be promoted Competition Act Industrial Technology Ministry of Trade, Revision to be promoted Protection Act Industry, and Energy

*Source: Ministry of SMEs and Startups

[Figure 3-5-2] Current Status on Introduction of Punitive Damage Compensation Regulations in Technology Protection Laws

Competent Legislative task Existing Revised Progress status ministries Ministry of SMEs and Initiated in Nov. 2018.11 Fair Cooperation Act Triple Startups → Judgement committee held Amount of Revised in Jan. 2019 Patent Act Triple damages → implemented in July 2019 KIPO Prevention of Unfair Revised in Jan. 2019 Triple Competition Act → implemented in July 2019 Industrial Technology Ministry of Trade, Revised in Aug. 2019 X Triple Protection Act Industry, and Energy → implemented in Feb. 2020 Initiated in Aug. 2018 「ubcontract Act FTC Triple 10 times → Standing committee held

(3) Quick Response System to SMEs Technology Leakage through Cooperation with Related Ministries

In the event of a technology takeover, investigative agencies, such as the SPO and the National Police Agency, and related ministries, such as the Ministry of SMEs, FTC, and KIPO, cooperate to quickly respond to prevent further expansion of the damage.

To rescue SMEs damaged by technology takeover at the level of ministries, the Ministry of SMEs has formed a task force to eradicate technology takeover at the level of the Minister and the department heads of related departments, and each ministry has established a cooperation system across ministries, such as sharing the results after handling the cases under its jurisdiction.

196 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 197 Ministry Joint Ministry

Council Working-Level Working-Level Subcontracts and Consignment Subcontracts Council for Dispute Settlement of of Settlement Dispute Council for Trade Environment Improvement Division Improvement Environment Trade Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter * Secretary: Fair Cooperation Policy Officer Policy Fair Cooperation * Secretary: (A total of about 15 people) of (A total Committee Fair Coordination

* Chairperson: Minister of SMEs and Energy, * 5 ex officio, 9 appointed positions 9 appointed officio, * 5 ex SMEs and Energy, of * Chairperson: Minister Committee Coordination the Fair of System Promotion Technology Disputes Technology Technology Protection Division Protection Technology The Ministry of Justice is responding quickly and efficiently from the stage of receiving Furthermore, Furthermore, the KIPO is pursuing securing an organization and manpower to establish the The Ministry of SMEs signed an MOU in May Foundation time 2019 with the for the first Korea Mediation and Arbitration Committee for for Committee Arbitration and Mediation practices. criminal intelligence by working closely with related such organizations as the National industrial industrial technology leakage, in cooperation with the Ministry of Industry and the Ministry of Justice to prevent the leakage of national wealth through technology leakage. To implement it, and the institutionalize revised Competition Prevention “Unfair Act” went in into effect July of the same year with the of content easing trade secret and requirements expanding trade secret Unfair Unfair Competition which Investigation Team, is an agency in charge of technical judgment in when expertise. It is with judgment supporting technical the in the Office collaboration technical it is of difficult a a to make determination case technical filed with the the FTC, Ministry of SMEs, and the National Police Agency. In January 2019, the office announced measures to eradicate * Source: Ministry of SMEs and Startups * Source: of all ministries to promote discussions on laws and systems. promote to of all ministries 3-5-3] [Figure of technology infringement cases, was established. With not only the related ministries such as the Ministry of SMEs, FTC, SPO, National Police Agency, and KIPO but also with the Korea Foundation for Cooperation of Large & Small Business, Rural Affairs, the Fair Coordination joint case handling committee a and public-private policies promoted and Committee operated for for Cooperation of Large & Small Business, Rural Affairs, and the SPO In June of the same year, the task force for the eradication of technology takeover was expanded, and the “Fair for mediation rapid a and Committee” Coordination organization joint arbitration public-private 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Intelligence Service, the Korea Industrial Technology Protection Association, the Patent Intelligence Service, and the Venture Business Association, centering on the Technology Leakage Crime Support Center of the SPO. Also, the Ministry of SMEs is sharing professional knowledge through seminars and promoting to revise laws to strengthen the punishment of crimes against technology leakage.

[Figure 3-5-4] Measures to Eradicate Industrial Technology Leakage

Four major fields 20 practical tasks

1 Blocking attempts to take over technology (Ministry of Industry) 2 Strengthening the management of national core technologies owned by government ministries and public (Ministry of Industry) Reinforcement institutions of management 3 Expanding management of national core technologies in (Ministry of Industry) system for new industries important industrial 4 Easing the constitution of trade secret crime (KIPO) technology 5 Strengthen consulting and funding support for companies (Ministry of Industry) possessing important industrial technology 6 Improving the export process of national core technology (Ministry of Industry) 1 Enhancement of punishment standards for leakage of (Ministry of Industry, KIPO) Strengthening national core technology and trade secrets punishment for 2 Strengthen court sentencing standards in case of (Ministry of Justice) infringement technology leakage of industrial 3 Introduction of punitive damage compensation system (Ministry of Industry, KIPO) technology 4 Including new targets for collecting criminal proceeds (Ministry of Justice) 1 Direct institution and support of a public action for (Ministry of Justice) investigation of important cases Improving the 2 Relief of the burden of proof for the technology leakage of irrational system (Ministry of Industry) the victim related to trial 3 Prevention of possibility of technology leakage during the (Ministry of Industry) trial process 1 Preparation of the basis for utilization of financial (Ministry of Justice) transaction information in case of technology leakage 2 Strengthen the basis for duty execution of technology (Ministry of Industry) leakage investigation 3 Indication of mutual assistance by National Intelligence Service at the time of announcement of the results of the (Ministry of Justice) Establishment of an prosecution and police investigation effective promotion 4 Expansion of the work authority of special judicial police of system (KIPO) KIPO 5 Expansion of the organization in charge of technology (Ministry of Industry) protection 6 Expansion of foreign investment committee members (Ministry of Industry)

7 Improvement of report reward system (Ministry of Industry)

* Source: Ministry of Trade, Industry, and Energy

198 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■

91) 199 , which is a seed 92) Strategies Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Golden Seed Project of Strategy Implementation rice, potato, corn potato, rice, chicken Global market development strategic items: pepper, cabbage, radish, watermelon, halibut, serranidae, abalone, abalone, halibut, serranidae, watermelon, radish, pepper, cabbage, items: development strategic market Global pig, seaweed, paprika, lily, tangerine, mushroom, onion, tomato, cabbage, items: strategic protection Variety Integrated support for export strategic R&D for pioneering the target market pioneering the target R&D for strategic export support for Integrated Collecting national capabilities of industry-academia associations capabilities national Collecting companies led by private seed development capabilities and export Strengthen Looking at major content of its business, the Project strives to develop 20-plus strategic seeds develop to 20-plus of business, strategic its strives the major Project at content Looking The Ministry of Agriculture, the Ministry of Oceans, the Rural Development Administration, (1) Promotion of Golden Seed Project of (1) Promotion D) Cooperation for Protection of New Varieties of Plants of Varieties New of Protection for D) Cooperation The World Intellectual Property Organization, also known as WIPO, started discussion Intergovernmental Committee on Intellectual Property and Genetic Resources, Traditional Knowledge and Folklore. Knowledge Traditional Resources, and Genetic Property on Intellectual Committee Intergovernmental Golden Seed Project.

▹ → → ▹ ▹ 91) 92) for export by providing support for the five projects for development of seeds and stockbreeding development of seeds and stockbreeding for projects the five support for providing by export for of varieties. protection and for markets global into forays make aimed to [Table 3-5-5] [Table and the Korea Forest Service jointly promote the Golden Seed Project (GSP) R&D carried project out to as jump a ahead as national strategy, a global seed powerhouse and seed industries. for lay the foundation are consistently participating in the conferences, checking up in of on the each country,participating the conferences, and status are consistently in the agenda. reflected are interests ensuring our national meeting meeting of WIPO declared the commencement of the Inter-governmental Committee (IGC) on Intellectual Property, Genetic Resources, and Knowledge Traditional and Folklore and since the first meeting inter-governmental held in 2001, there have been a total of 40 as conferences of December 2019. The KIPO, Ministry of Culture, and other in government organizations Korea about formation of norms designed to protect genetic resources, traditional knowledge and expressions of folklore from the perspective of IP rights. In September 2000, the general 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

[Table 3-5-6] Strategic Seeds for Export

Category Strategic seeds and breeders for export Vegetable Seed Business Group Pepper, Chinese cabbage, radish, watermelon, paprika Horticultural Seed Business Group Cabbage, onion, tomato, mushroom, lily, citrus

Fisheries Seed Business Group Halibut, serranidae, abalone, Seaweed

Food Seed Business Group Rice, potato, corn

Breeding Business Group Pig, chicken

A total of 491.1 billion KRW is being invested including the government’s investment amounting to 398.5 billion KRW in the projects (Phase 1: 2013-2016; Phase 2: 2017-2021). Breeding pigs and chickens developed are registered with FAO DAD_IS every year

(2) Cooperation between Organizations Operating the Variety Protection System

The Ministry of Agriculture held a joint review committee for the variety protection system two times, first in Mokpo in April and second in Jeju in November. The Ministry of Agriculture also attempted to unify the examination standards between institutions by maintaining an examination cooperation system between the National Seed Resources (Crop)-National Forest Variety Management Center (Forest)-New Fisheries Variety Management Center (Fisheries). Efforts are being made to promote publicity by publishing a notice on variety protection, once a month, through business cooperation between organizations. In 2019, to strengthen the basis of the variety protection system, four revisions were also made - How to Operate the Joint Examiner Council, Standards for Submission of Seed Samples, How to Examine Varieties for Variety Protection Applications, and How to Apply for Variety Names and Examinations.

The Ministry of Agriculture and the Ministry of Oceans are pushing forward with development of varieties identification markers in a bid to prevent infringement of varieties protection right and put an end to seed disputes. The Ministries together are also building a database for analysis of genes of varieties submitted for patent application. Moreover, the Ministry of Agriculture engages in crackdown on distribution of illegal seeds in cooperation with the Special Judicial Police and strives to cope with seed disputes through the Seed Dispute Coordination Council supervised by the Korea Forest Service.

Local governments are making efforts to develop and distribute new varieties with added

200 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 201 (Establishment of National Species List). Species of National (Establishment 」 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter In 2019, a cumulative 52,628 species of the National 93) Biodiversity Conservation and Use Act and Use Conservation Biodiversity 「 Ministry of Environment and other related ministries have established an information- (3) Establishment of National Species List and Operation of Working-Level Committee Working-Level of and Operation Species List National of (3) Establishment Gyeonggi-do Gyeonggi-do tried to prevent the distribution of cloned varieties by including the right to Article 10 of the

be used as a basis for securing international rights of native organisms in Korea. organisms of native rights securing international for be used as a basis 93) national bio-sovereignty and establish the for and basis national bio-sovereignty use establish and management by securing evidence, following the conclusion of the Convention on Biological Diversity in 1992 and the entry into force of the Nagoya Protocol in 2014. Species List were established and information on 33,809 confirmed specimens was secured to sharing system, such as information on national species list, revisions, and supplements, among and revisions, supplements, species list, on national such as information sharing system, ministries by revitalizing the operation of the National Species List Working Committee. They aimed to make a list of biological resources living on the Korean peninsula and strengthen biological biological resources in Jeju to secure the sovereignty of biological resources in the Jeju region use. sustainable for foundation a research and establish in the agricultural environment. The province is developing new varieties of competitive horticultural crops and promoting the development of new varieties of special crops with enhanced functionality in line with changes in trends. consumption Jeju Special Self-Governing Province also has biological collected resources in the province and established information on 2018. In 2019, were investigations conducted on illegal and bad seed distribution companies in southern such Gyeonggi as 19 provinces Hwaseong and from September to August Pyeongtaek 18, and nine violations were detected in four locations. Chungcheongnam-do recognizes the seed industry as a growth engine for the following future three changes innovations agricultural pomegranate, pomegranate, etc.). Jeollabuk-do is making efforts to foster new varieties, such as paprika and develop and high-quality technologies. watermelon, investigate bad seeds and varieties in the Gyeonggi Province Special Judicial Police duties in value value fit for local conditions in step with the trend of strengthening IP rights for new varieties all over the world. Jeollanam-do engages in the effort for the development of competitive new varieties for items including rice, bean, special medicine (mushrooms, etc.), horticulture loquat, fruit oak, (red tree subtropical tree, tea etc.), pepper, (onion, hydrangea, rose, strawberry, 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

(4) Establishment of Interagency ABS Legal Support Group

On April 3, 2019, the Legal Support Group for Genetic Resource Access and Benefit Sharing 94) (ABS) was established, and a joint business agreement was signed by the Genetic Resource Information Management Center and five related ministries. This is a policy in response to the demand for counseling related to profit sharing of genetic resources increases, and legal response is required because the Nagoya Protocol came into effect in Korea and the Genetic Resources Act has been enforced since August 2017. The support group will provide consultation for domestic companies, such as fulfilling foreign laws and regulatory requirements, protecting IP rights such as patents, and negotiating profit sharing. Workshops are held on a regular basis to share the latest trends and issues and discuss countermeasures.

In addition, the ministries related to the Genetic Resources Act such as the Ministry of Environment held two meetings to discuss matters necessary for access and use of genetic resources and profit-sharing and operated a working group five times for practical review. The Korea ABS Forum was held on June 9, 2019, to discuss the latest ABS trends and major issues and to collect industry opinions. 3) Expansion of Public-Private Partnerships for Protection of Intellectual Property

Public-Private Partnerships are also actively underway to protect IP. The KIPO and the KOIPA have been operating the Illegal Reproduction Distribution Prevention Association, which is a public-private cooperative organization, with 79 other groups/people, including government and related organizations, online service providers, trademark rights owners, for effective response to distribution of counterfeit products through joint private-public response and corporate participation.

The Korea Customs Service implemented a joint export-import crackdown system of IP infringement with the Trade related IP rights Protection Association (TIPA), improving the efficiency of crackdown. The Korea Customs Service is requesting advance reporting of the rights in order to effectively prevent export/import of IP rights infringing goods in the customs clearance phase. The TIPA is fully responsible for reporting such IP rights to the Korea Customs Service, and it also shares with the Korea Customs Service the IP rights information reported

94) Access and Benefit Sharing.

202 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 61 203 257 5,319 7,050 12,756 15,052 Total [Unit: case] [Unit: case] 2019 - - 4 Image 100 1,926 11,276 - 1 1 2018 Photo 166 91 91 141 1,675 12,121 Comic 2017 - - 12 158 Game 3,119 12,732 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter 2016 54 423 235 Publication Publication 251 4,765 46 11,776 2,756 3,534 2015 Video

96) Crackdown Crackdown of Counterfeit Products in Outbound International Mails in Last Five Online Copyrighted Materials Requesting Protection Online by Copyrighted Materials Requesting Protection Right Holders in Last Three Years Years to promptly respond to distribution of illegal reproduction online and the online

5,078 9,669 95) 10,991 Music Category In addition, the TIPA dispatches its private exerts to the international mail custom clearance In 2019, 46,608 notices of infringement were issued, an increase of 8,592 from the previous The Ministry of Culture is operating rights holders-requested infringement reporting Autonomous action with duty. Autonomous no Aslegal of cooperation 2019, 51 in online the service public-private are participating providers annually. is calculated online protection for requested of the works The status response program. response

Detected case Detected Detected items Detected Year Screened items Screened 2017 2018 2019 95) 96) * Source: Ministry of Culture, Sports and Tourism Sports Ministry of Culture, * Source: from 12,756 to 15,052. 12,756 to from 3-5-8] [Table protection protection request system through Public-Private Partnerships among rights holders, the and online service providers. KCOPA, also increased protection requesting materials of 38,016. The number of online copyrighted year * Source: KCS * Source: procedures infringe infringe the IP rights throughout the year. As a result, in 2019, they have detected a total of 61 of the IP rights. in violation are outbound mails that international 3-5-7] [Table through through the Korea Customs Service’s electronic system and supports rapid crackdown on IP phase. clearance in the custom infringement rights department of Incheon airport, to perform intense crackdown on international mails that 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

The Ministry of Culture started requesting search restrictions so that blocked sites are not searched on the Google site from 2018. In 2019, the scope of search restriction requests was extended to domestic portal operators, blocking searches for a total of 797 sites.

Especially, the KCOPA signed an MOU with various cooperating organizations, including K-internet, the Korea Webtoon Industry Association (KWIA), the Korea Reproduction and Transmission Rights Association (KORRA), Confederation Internationale des Societes des Auteurs et Compositeurs (CISAC), Warner Brothers, Entertainment Software Association (ESA), improving its efficiency. In 2019, MOUs were signed with Korea Character Culture Industry Association, Chung-Ang University, Soongsil University, and Jeonbuk National University to increase efficiency.

The Ministry of Environment jointly published and distributed the National Species Inventory Book with participation from eight domestic associations related to organisms to enhance the status of the National Species Inventory Management Agency and improve professionalism through public-private collaboration. The Ministry also has formed a council with five associations, including the Korea Bio Association, the Korean Cosmetics Association, the Korea Health Functional Foord Association, the Korea Pharmaceutical Traders Association, and the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, to jointly respond to the strengthening of international regulations on the use of biological resources due to the entry into force of the Nagoya Protocol. This allows the opinions from the industry to be collected and reflected in the government’s support policies.

[Table 3-5-9] Activities of Bio Industry Council in 2019

Category Major contents The 1st Council (Apr. 2018) Discussing the establishment and operation of the council Difficulties/suggestions by industry, discussion of industry positions on DSI and disclosure The 2nd Council (Jul. 2018) of patent sources, etc. Participation in the international joint statement “Opposition to the application of the DSI The 3rd Council (Nov. 2018) Nagoya Protocol,” including discussions on the joint position of five associations on the application of DSI and disclosure of patent sources. The 4th Council (May 2019) Discussing POST-2020 global biodiversity framework and ABS manual composition, etc. Discussing international trends related to DSI and ABS example contracts, and practical The 5th Council and manuals, held a joint seminar on “Bio industry trends at home and abroad and the Joint Seminar (Aug. 2019) impact of the Nagoya Protocol”

* Source: National Institute of Biological Resources - Genetic Resource Information Management Center

204 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 205 was expanded 99) Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter , and cooperation methods, which are in force between the 98) with the U.S. and Offices is China continuously Patent expanding to countries with large 97) The Ministry of Science has put forth efforts to comply with international standards through The KIPO set up a consultative body with the patent organizations of four major countries, 1) Industrial Property Right Property 1) Industrial Global IP Response Capabilities Strengthen to Cooperation International of A) Strengthening It It refers to a system that enhances the accuracy and consistency of examination results by sharing information on prior art Collaborative Search & Examination.; PCT international search is conducted through review and exchange of opinions not by Refers to a system in which, when a patentable examination result is received in a first country, the result is submitted to a literature literature required for examination in case the same invention has been patented in both countries. It has 2015. been September since implemented States with the United offices. patent leading five alone, but by office one patent As in 33 countries. of 2019, it is implemented priority examination. request country to second

97) 98) 99) cooperation cooperation between the three countries in Northeast Asia, Korea, China, and Japan to reflect international standards of Korea’s leading technologies such as 5G. The Ministry of Science to attempted expand Korea’s influence in the International for Organization by Standardization plans on major issues discussing cooperation such international as wireless power transmission revitalize revitalize personal exchange, such as enhancing the effectiveness of IP cooperation by utilizing Meeting. and Deputy Heads the IP Officer IP5 Patent IP5 Offices. Patent The enforcement of the patent examination highway (PPH) with Eurasian Intellectual Property Office (EAPO) on January 1, 2019, Peru on the 6th of the same month, Vietnam on June 1, and Saudi Arabia on July 1, to support rapid acquisition of as Moreover, examination. of quality the improve to and companies domestic by patents foreign IP5 chair countryand in internationally 2019, have been efforts system made unify to the patent (CSP) filings of patent applications such as the UK. From July 2018, discussions were made on the the PCT to related system such as the computer system, operating of the practical improvement Cooperation Examination (CS&E) of industrial property right (patents, trademarks, and design) which can reflect the interests of South businesses. Korean With field, the to the respect South co-founded IP5 patent Korea and of programs and synchronization examinations in patent seek cooperation is using to this forum In 2019, projects. through 10 the examination major joint and tasks collaboration patent various including including the United EU, States, China, and Japan, together account for more than 80% of global industrial IP applications. The purpose of this effort was to establish a global standard 2. International Cooperation System Cooperation 2. International 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

including 5G, information protection, and intelligent networks through the Korea-China-Japan IT Standards Cooperation Conference and by providing a foothold to preoccupy the global market through the production and training of chairpersons of the shared international standardization organization.

B) Attracting International IP Organizations and Leading Global IP Initiatives

KIPO formed strategic countermeasures on WIPO related major issues. In March 2019, KIPO established a strategy to attract WIPO regional offices to Korea and in April of the same year, KIPO established a plan to expand employment opportunities to international organizations. In June, the WIPO Secretary-General visited Korea to meet and discuss with domestic high-ranking officials, including with the Prime Minister and the Chief Justice of the Supreme Court, and held a WIPO advancement briefing in collaboration with the Korean Patent Attorneys Association. In July, the WIPO Roving Seminar was held in Daejeon and Seoul for the first time in Korea in cooperation with the WIPO-Korean Patent Attorneys Association to strengthen cooperation with international organizations.

The foundation was laid for maximizing national interest by participating in major conferences in 2019 including the General Assembly of WIPO Member States in September, Intergovernmental Committee on Genetic Resources and Traditional Knowledge on March 6, Project Budget Committee on May 7, Development Committee on May 11, and Executive Advisory Committee in September.

100) [Table 3-5-10] Analysis of IPR multilateral/trade negotiations in Last Two Years [Unit : session]

Year 2018 2019

No. of sessions 39 55

* Source: KIPO

C) Expansion of Support on IP Administration Service to Developing Countries

As the countries from which South Korean businesses are increasingly seeking to obtain IP rights are becoming more diversified, the KIPO has tried to build a friendly environment for Korean companies as well as to promote national status by spreading IP administration services

100) Refers to the number of IPR multilateral/trade negotiations, trend analysis, and strategy establishment including WIPO, FTA, APEC, etc.

206 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 207 through 102) Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter through IP consulting support and education for ASEAN countries. Efforts have 101) Property Rights Property Strengthening Strengthening International Cooperation to Expand Border Measures for Intellectual

Knowledge Sharing Program. Sharing Program. Knowledge IP Official Development Assistance.

The Korea Customs The ServiceKorea Customs supported the by crackdown holding a seminar on authenticity/ D) In January 2019, an Action Plan between the KIPO and the Saudi Intellectual Property fake fake identification targeting customs officials in major countries in China and Southeast Asia 101) 102) recognition. development sharing project. In Cambodia, it has been agreed that Korean patents of Korean companies can be automatically validated without local examination by providing administrative services in the form of IP Official Development Assistance (IP ODA) consultations on IP rights and signing cooperation for dissemination and automatic patent of 15 million dollars in total from 2014 to 2019. Through the signing of an MOU in 2019, the scope of the audit agency was expanded to intermediate documents and the limit on the amount of audit was removed to enhance the sustainability of the project. Consultations for the advancement of the IP rights system were provided in Iran through the Korean economic conducted the information system development and development projects for the competency the for developmentcompetency and development projects system the information conducted of local auditors through two Chief of Intellectual Property Office Meetings and signing an MOU. In particular, as the first patent administration information system export case in which the government of the beneficiary country bears the total cost, it achieved an export effect Meeting Meeting in March, and in June, signing of an MOU, with President in attendance, which led to Saudi Arabia attaining an administrative service export contract worth a total of six million U.S. dollars and dispatching of 11 experts to the field. In February and June of the same year, the United Arab ) Emirates (UAE expanded the scale and scope of the audit agency and been made also to create a friendly environment for Korean companies that have entered the Meeting. Office Property country Chief of Intellectual holding the 2nd ASEAN+1 by Office established an Action Plan which brought about a Chief of Intellectual Property Office of Korea and support the enhancement of IP rights to emerging and developing countries where are Korean companies expanding. In particular, the KIPO the promoted IP advancement project for the new southern countries such as the Korean Economic Development Sharing Project (KSP) 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

by producing a manual for reporting Korean Wave brand IP rights. The Korea Customs Service also strengthened the cooperation to expand border enforcement measures for IP rights by exchanging information such as measures to activate IP rights protection through a meeting of the heads of Korea, China, and Japan Customs Service.

In cases where more than 100 IP infringement items are found or in cases where items that effect the safety and health of citizens, such as drugs, cigarettes, foods, automobile parts, the Korea Customs Service shares information of crackdown on infringement with the Japanese Customs Service and make good use of it for strengthened crackdown efforts.

Further, the KIPO utilized the data from the damage prevention surveillance and in-depth investigation of major trademark brokers in China and Vietnam as data for the response to strengthen it to unauthorized preemption by foreign trademark brokers. It shared infringement countermeasures with local companies and blocked the distribution of counterfeit products in cooperation with local e-commerce companies.

The Ministry of Foreign Affairs cooperated with the KIPO and the Supreme Prosecutors’ Office to form a cross-departmental task force to respond to Korean product imitators. External activities were promoted to protect IP rights of domestic companies such as requesting the UAE embassy for a crackdown on Korean products in the wake of the high-level bilateral talks between the UAE and Korea and holding a meeting with the Chinese Ministry of Foreign Affairs and the General Bureau of Market Supervision to respond to Korean product imitators.

E) Domestic and Foreign Cooperation to Respond to Companies Taking Advantage of the Korean Wave

In February 2019, nine ministries including the KIPO, Ministry of Industry, Ministry of Foreign Affairs, and Prosecutors Office formed a joint task force to respond to companies riding on the Korean Wave. Internally, they promoted local responses such as country-by-country surveys and crackdown requests. Externally, efforts were made to develop diplomatic cooperation activities, such as inviting foreign IP enforcement officials to Korea, by using the invitational training for public officials and raising issues about the business activities of companies riding on the Korean Wave. In particular, in 2019, the MOFA and KIPO enforced a massive crackdown on companies riding on the Korean Wave that cause foreign consumers to misunderstand Korean companies.

208 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 209 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter In In addition, the copyright forum is held annually with the Korea Copyright Commission to A) Bilateral Cooperation A) Bilateral protection for copyright of The mutual Ministrysystems cooperation of is Culture establishing 2) Copyright In cooperation with the Ministry of Foreign Affairs, the KIPO held an IP manager meeting Asian Copyright Forum,” to seek a plan for cooperation between the copyright authorities of four Asian countries. These efforts made it possible to jointly respond to illegal copies of our work by establishing a cooperative system with local law enforcement agencies in China, event leading copyright issues in Asia. And, starting with the Copyright Korea-Pacific Forum in 2008, it has held annual forums and Asiancopyright between Korea Southeast which countries, was expanded to Vietnam in 2010 and to Philippine in 2011. In July 2019, according to the hold the “Korea-Southeast to invited were countries three countries, opinions of the participating strengthen cooperation with major countries in the Korean Wave. In particular, the “Korea-China the “Korea-China In particular, Wave. in the Korean with major countries cooperation strengthen Copyright Forum,” which its celebrated 15th in June 2019, and the “Korea-Japan Copyright Forum,”which its celebrated 11th in December of the same year, has become a cross-border such efforts, the Ministry of Culture signed MOUs with China, Japan, Vietnam, Thailand, the Philippines, Malawi, Mongolia Paraguay, and hold periodic seminars and inter-government further cooperation. for meetings with major trading partner countries to provide support for export/distribution of the country’s legal contents and protect their copyright more effectively outside the country. As part of regional regional workshops for trade center employees in cooperation with KOTRA to promote support projects on various and guidance system on the IP rights education iLahui, its subsidiaryKorean and was for stopped the address after notation produced products 2019. September in dissolve to court Korean the decision of the in Vietnam in which 13 missions in the ASEAN region participated. The KIPO also held three Thai customs cracked down on ARCOVA and confiscated about 18,000 items (approximately 80 million KRW) from across 30 categories. Also, the dissolution of corporations established in Korea was promoted in cooperation with the SPO to block the grounds for companies riding on the Korean wave to disguise themselves as Korean In companies. the case of MUMUSO and 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

Thailand, Philippine, and Vietnam in 2019.

B) Multi-Party Cooperation

Starting in 2006, The Ministry of Culture provides Funds-in-Trust (FIT) to the WIPO each year in a bid to foster an environment conducive to the protection of the countries contents in developing countries. The ministry also holds an annual training session designed to help participating countries’copyright-related capabilities by sharing the country’s experience in copyright laws and systems, inviting their representatives, starting in 2007, as part of such a program. Since Korea’s success in the copyright field is attributed to the effective protection of domestic copyrights based on the advancement of copyright law and strong government protection policies became known among the countries developing copyright, an increasing number of their copyright officials desire to come to Korea for training. The 13th event in 2019 was attended by 18 policymakers in the field of copyright from 18 countries in Asia-Pacific, Central and South America, and Africa.

103) Since 2012, the Ministry has hosted the Inter-regional Workshop on Copyright Enforcement, an annual event designed to provide countries’copyright officials with an in-depth educational program concerning copyright protection/execution. Hosted by the Ministry of Culture and WIPO and organized by the Korea Copyright Commission, the Korea Copyright Protection Agency, and the World Trade Organization (WTO), this workshop was held in March 2019 to discuss on international copyright enforcement and cooperation measures, civil and criminal countermeasures, and related legislation. nine countries including Brazil, China, Colombia, India, Indonesia, Singapore, Sudan, Uganda and Ukraine, as well as 17 major copyright enforcement 104) officers from one international organization participated and shared their experiences and cases.

In addition, an annual International Copyright Technology Conference (ICOTEC) is being held since 2011. This conference is hosted by the Ministry of Culture and cooperated by the WIPO and jointly superintended by the KCOPA and the Korea Copyright Commission to create a window of copyright technology exchanges in the world and to promote the competitiveness of Korean copyright technologies. In November 2019, it was held under the theme of the “5G era: A new beginning for

103) WIPO-MCST Interregional Workshop on Copyright Enforcement. 104) African Intellectual Property Organization (ARIPO).

210 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 211 is an 105) Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter International Union for the Protection of New Varieties of Plants. of Plants. of New Varieties the Protection Union for International

The Korea Agriculture, Foods and Rural Affairs, and the Korea Seeds and Variety Service The International Union for the Protection of New Varieties of Plants (UPOV) 3) New Varieties of Plants Plants of Varieties 3) New At At the Copyright Forum held in in Tokyo December 2017, the COA signed an MOU with the As for the Copyright Overseas Promotion Association ), (COA which has 15 member members. members. UPOV PRISMA allows a person by submitting one varieties protection application document to submit online application to one or many of 30 reviewing organizations of the UPOV 105) participated participated in implementing the international e-application system of UPOV (UPOV PRISMA) to improve convenience of overseas application through international collaboration with UPOV international organization founded to internationally protect the rights of protect founded newto internationally of varieties plants organization international growers and the plant varieties guarantee system, Korea joined as a member to it in January 2002. and Taiwan and Criminal Bureau, Taiwan Investigation efforts were made to expand the scope of exchange and cooperation in all directions by discussing cooperation in response to infringement of in Taiwan. content Korean protection policy. protection In August, 174 countries from 36 in countries participated the 2019 Broadcast Worldwide (BCWW 2019) for four days and three nights, providing a place to share trends and current issues in the broadcasting content industry for participating companies. In November, held seminar jointly CODA on by Japan’s copyright exchange in an international by participating CODA CODA for closer cooperation. In March 2019, the ‘COA International Forum’ was held to find the role of content in the era of the 4th industrial revolution and the direction of the copyright of of global cooperation jointly with institutions, copyright-related private and organizations, distribution platforms both in and out of the country. Since its the establishment, has COA built relations with cooperative the Motion Picture Association of America and the Content Overseas ) of Japan. Association (CODA Distribution contents and copyrights.” Various discussions took place on the future of music production based on based of music production on the future place discussions took Various and copyrights.” contents providers. entertainment of 5G on online technology the impact and blockchain businesses/organizations specializing in broadcast, film, music, and cartoon, it builds a system 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

106) member countries. According to the POV announcement, as of October 2019, a total of 233 applications were filed.

[Figure 3-5-5] UPOV International E-Application System

UPOV Domestic and Overseas Applicant Intellectual Property Offices PRISMA

* Source: Korea Agriculture, Foods and Rural Affairs

There are 30 countries available for application, but the type of agricultural product available varies from country to country. There are a total of five crops that can be filed in Korea, including beans, lettuce, apples, roses, and potatoes. On the UPOV website (www.upov.int), a user may fill in the application for in a preferred language and select a country to for the seed to be protected and it will be submitted in the language the reviewing country requires. Varieties available for Korean language a total of 11 varieties including apple, oriental pea, western pea, grape, chamomile, rose, potato, corn, bean, strawberry, and lettuce.

107) [Table 3-5-11] Countries Available for Application with PRISMA and the Varieties of Plant

No Country Participation TBD Target plants 107) ⋏ 1 Africa ⋏ Every plant variety/sub variety Apple, barley, black radish, radish, baby cabbage, curly flower, oriental ⋏ cabbage, grape, bean, melon, potato, rose, shallot, grey shallot, bean, spinach, 2 Argentina ⋏ pimento, hot pepper, paprika (sweet pepper), tomato stem, watermelon, scallion, wheat, eggplant, white chicory, silk worm bean, fig, papaya, sage, crown daisy, sugar cane, cotton ⋏ 3 Australia ⋏⋏ Every plant variety/sub variety ⋏ 4 Bolivia ⋏⋏ Every plant variety/sub variety ⋏ 5 Canada ⋏⋏ Every variety except for water plants, bacteria and germs ⋏ 6 Chile ⋏⋏ Every plant variety/sub variety ⋏ 7 China ⋏⋏ Lettuce ⋏ 8 Colombia ⋏⋏ Every plant variety/sub variety ⋏ 9 Costa Rica ⋏⋏ Every plant variety/sub variety Dominican ⋏ 10 ⋏ Every plant variety/sub variety Republic

106) At the website of UPOV (www.upov.int), click the PRISMA menu or click on the overseas application PRISMA menu at the bottom of the website of Korea Seed and Variety Service (www.seed.go.kr) to connect to the UPOV website. 107) OAPI (17 countries): Benin, Burkina Faso, Cameroon, Chad, Comoros, Congo, Cote d’Ivoire, Equatorial Guinea, Gabon, Guinea, Guinea Bissau, Mali, Mauritania, Niger, Senegal, Togo.

212 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 213 TBD TBD Bean Target plants Target Every variety and sub variety Every plant variety/sub variety Every plant variety/sub variety Every plant variety/sub variety Every plant variety/sub variety Every plant variety/sub variety Every plant variety/sub variety Every plant variety/sub variety Every plant variety/sub variety Every plant variety/sub variety Every plant variety/sub variety Every plant variety/sub variety Every plant variety/sub variety Every plant variety/sub variety Every plant variety/sub variety Apple, rose, raspberry, blueberry Apple, lettuce, potato, bean, rose blueberry, chicken pea, lentil bean Tomato, melon, potato, lettuce,Tomato, onion bean, oats, rye, strawberry, blackberry kohlrabi, cabbage, potato, tea, cotton, grape 192 varieties including lettuce, potato and wheat Every plant variety except for those regarded as foods Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter Corn, wheat, broad bean, kidney bean, apple, pea, barley, oats, potato, Rice, corn, peanut, bean, tomato, rose, chamomile, watermelon, cucumber, cherry, raspberry, tomato, peach, hazel, blackberry, bean, sunflower, walnut, Corn, wheat, kidney pea, barley, Europe plumb, tomato, grape,pimento, hot pepper, paprika (sweet pepper), sunflower, walnut, apple, lettuce, potato, rose, Anthurium, pineapple, heliconia, orchid, rubber tree, pigeon bean, grape, cacao ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏⋏ TBD ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ ⋏⋏ Participation 108) UK USA Peru Swiss Korea EU Kenya Serbia Turkey France Tunisia Mexico Tobago Georgia Norway Sweden Ecuador Uruguay Moldova Morocco Country Vietnam Paraguay Nicaragua Uzbekistan South Africa Netherlands Trinidad and Trinidad New Zealand Hungary, Ireland, Italy, Latvia, Luxemburg, Malta, Netherlands, Poland, Portugal, Romania, Slovenia, Slovakia, Spain, Sweden, UK EU (28 countries): Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech, Denmark, Estonia, Finland, France, Germany, Greece,

34 35 36 37 30 31 32 33 26 27 28 29 22 23 24 25 18 19 20 21 14 15 16 17 11 12 13 No * Source: The website of Korea Seed And Variety Service (www.seed.go.kr) Seed And Variety of Korea The website * Source: 108) 108) 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

The Nagoya Protocol on Access to Genetic Resources and Fair and Equitable Sharing of Benefits Arising from their Utilization is a supplemental agreement adopted during the 10th conference of the parties to the Convention on Biological Diversity held in Nagoya, Japan on October 29, 2010. It entered into force on October 12, 2014, and Korea became a party on August 17, 2017. As of December 2019, a total of 121 countries (123 ratifications, 92 signed) have joined the Protocol.

With the entry into force of the Nagoya Protocol in Korea in 2014, the Genetic Resources Act, a measure implemented in Korea, was enacted in 2017 and implemented in earnest in 2018. For this, it is necessary to report access to five national responsible agencies (Ministry of Environment, Ministry of Agriculture, Ministry of Health, Ministry of Oceans, Ministry of Science) to access domestic genetic resources. Also, it is necessary to report compliance with the procedures to the domestic inspection agency (five responsible organizations and the Ministry of Trade, Industry and Energy) when intending to access overseas genetic resources and use them in Korea. For its efficient management, the Genetic Resource Information Management Center, an agency in charge of the Nagoya Protocol, was established in 2018. An integrated reporting system for relevant ministries has been also established and operated for a consistent reporting process.

With the ratification of the Nagoya Protocol, it is critical to secure the stable acquisition of biological genetic resources overseas as the main ingredient of production, and the Ministry of Environment reinforce joint research on overseas biological resources for securing and sustainable use of overseas biological genetic resources. The Ministry researched the biological resources and secured useful biological materials from four countries and regions in Tanzania, Vietnam, Kachin Province, Myanmar, and Kosrae, established a cooperation system through four patent applications through joint research on overseas biological resources, and signed A memorandum of joint research agreement with Tanzania and Russia. In particular, in November 2019, the First Korea-Mekong Summit was held and an agreement was made to establish the Korea-Mekong Biodiversity Center as the key project.

The Ministry of Agriculture signed an MOU with the Quarantine Agency to secure overseas biological resources and expanded international exchanges for collecting information on varieties protection. The ministry prepared tips for investigating characteristics of forest plants in

214 제2장 ■ Chapter 03 ■ Achivements of Policy Enforcement on IP Protection ■ Chapter 01 ■ ■ Chapter 02 ■ 지식재산 현황 ■ Chapter 04 ■ 215 Chapter 03 Achivements of Policy Enforcement on IP Protection on Enforcement Policy of Achivements 03 Chapter field field of new plant variety protection. In December of the same year, 11 countries, including Bangladesh, Cambodia, China, Myanmar, and Malaysia, participated in capacity building the development the Asian of for seed industry.training Korea Korea based on understanding international trends related to variety and protection used it for Crop of Working In applied Technology May varieties. 2019, tests the cultivation UPOV Vegetable Conference was held in Korea, and 16 countries including the European Union participated. Also, a technical cooperation agreement was signed with naktuibouw of Netherlands in the 2019 Annual Report Future Outlook and Policy Response Direction

Section 1. Maintenance of IP Protection System for Non-Face-to-Face Digital Era 218

Section 2. Maintenance of IP System to Lead the Core Technologies of the 4th Industrial Revolution 218

Section 3. Strengthen Fair Economy Infrastructure for IP Protection of Small/Medium/Venture Businesses 219

Section 4. Strengthen Copyright Protection Ecosystem according to Changes in Industrial Environment 219

Section 5. Strengthen IP Protection and Enforcement 220

Section 6. Strengthen IP Protection System for Bio Industries 220 Chapter 04 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

In an environment where technology and industry are rapidly changing, IP policy is a key strategy that can improve the industrial structure and reinforce national competitiveness. Since IP is applied to all technologies and industries, it is necessary to prepare a balanced strategy for protection and use from a whole point of view rather than a specific industry and a specific point of view. As the non-face-to-face digital environment is further strengthened in 2020, the IP legal system needs to be reviewed for the core technology areas in the era of the 4th industrial revolution along with the concerns about the IP legal system in the online environment. It is necessary to establish an overall response strategy from various industries and viewpoints including the following: Creating a fair environment for promoting the growth of startups and SMEs Maintenance of copyright ecosystem for K-brand and content activation; IP protection and enforcement to respond to IP infringement; and IP protection system maintenance in the bio- industry according to the era of virus and infectious diseases.

1. Maintenance of IP Protection System for Non-Face-to-Face·Digital Era

With the transition to an online and digital-oriented society, a lot of changes are required for IP policies also. There is a need to improve copyright protection and utilization following the non-face-to-face,digital era as fields such as education and performances are being conducted online in addition to shopping and delivery. In particular, it is necessary to prepare strategies for copyright infringement issues in online classes and copyright licensing issues for streaming online performances. Also, it is necessary to establish clear standards for the collection and use of unstructured data as the artificial intelligence industry develops.

2. Maintenance of IP System to Lead the Core Technologies of the 4th Industrial Revolution

In the era of the 4th industrial revolution, the IP system for core technologies such as artificial intelligence, software, data, and AR/VR is an important factor that can secure a competitive advantage in competition between countries. To this end, It is necessary to establish a protection system to recognize the rights of artificial intelligence creations and to enhance the professional competence of patent examination, such as establishing examination standards suitable for the characteristics of each core technology field. In the case of the AR·VR industry,

218 ■ Chapter 04 ■ Future Outlook and Policy Response Direction ■ Chapter 01 ■ ■ Chapter 02 ■ ■ Chapter 03 ■ 219 Chapter 04 Future Outlook and Policy Response Direction Response Policy and Outlook Future 04 Chapter Strengthen Strengthen Copyright Protection Ecosystem according to Changes in Strengthen Strengthen Fair Economy Infrastructure for IP Protection of Small/ Industrial Environment Environment Industrial Medium/Venture Businesses Medium/Venture As the global platform market is growing and a 5G mobile communication is being To To achieve national industrial development through new technology development and for for content export. protect To and use public works, it is needed to clearly stipulate the scope, of conditions, and free exceptions use of public works that are not clearly defined in the current Public Data Act, Copyright Act, and related notices. Also, it is urgent to prepare a procedure for commercialized, commercialized, competition among countries for the content industry is intensifying. For this, is necessary shift the in lead to industry. a paradigm the strategy national It content is necessary to create a friendly export environment by expanding the Korean Wave consumer base along with the development of new markets such as the New Southern and New Northern regions 4. necessary, going forward, to clearly establish the concept and criteria for theft of trade secrets and ideas through amendments to the Unfair Competition Prevention Act. Also, it is necessary to continuously provide education and consulting along with the preparation of guidelines for of theft. the prevention Specifically, Specifically, it is necessary to and the strengthen to investments of connection strategies patent promote the growth of startups and to establish a related system and system that can prevent the of leakage core technologies of SMEs in For the advance. protecting ideas and technologies of SMEs, the regulation on the takeover of ideas is of paramount importance. Therefore, it is service activation, the birth of new and diverse startups is more important than anything else. It is necessary to establish an ecosystem that allows them to settle in the market, grow into small and medium-sized companies, compete fairly, and contribute to social development. 3. considering considering that content development is relatively insufficient compared to the development of technology,hardware-related there is a need to improve regulatory reform and uncertainty for the development of industries. related It is also necessary to actively support the of creation field. in the ICT standards in the international contributor be a key to patents standard 2019 Annual Report on Intellectual Property Protection and Enforcement in Korea

succession after the original attribution of the creator and to restrict the exercise of the author’s moral right to protect the creator in work for work. In addition, a strategy needs to be prepared for including video in the concept of digital voice transmission in response to changing media environments such as single-person media and real-time broadcasting.

5. Strengthen IP Protection and Enforcement

As inventions are gradually becoming more diversified and patent applications and registrations continue to increase, new forms and methods of patent infringements are also being introduced. A discussion on a legal system is necessary that can actually regulate this. The number of technology leaks to the national core technology is increasing year by year, and the possibility of technology leakage through overseas job change is increasing. Therefore, it is necessary to minimize the possibility of technology leakage by checking the Industrial Technology Protection Act and Enforcement Decree and to expand the business sectors for managing national core technologies by strengthening the evaluation of overseas mergers and acquisitions. Also, as the number of cases of infringing on IP rights such as trade secrets or trademarks of companies through cybercrime across borders is increasing, it is necessary to consider joining the cybercrime treaty. For copyright, it is prudent to strengthen the protection of creators and countermeasures against copyright infringement using digital technology.

6. Strengthen IP Protection System for Bio Industries

In a situation where new viruses of different types from the existing ones are constantly appearing, an institutional overhaul is necessary so that developing countries are not marginalized or discriminated against in the supply of medicines with cooperation such as information sharing between countries. Since the pharmaceutical industry is related to human life, the protection of the rights to related technologies and drugs and the balance of public access to guarantee human life and health should be considered critical. Therefore, it is necessary to promote a policy that allows innovation in pharmaceuticals to occur and a policy in which the result of the innovation can be well utilized in the public. Detailed procedures should be established for the mandatory implementation of patented drugs for public health. Also, a prospective review is required for the method of including medical practice or related

220 ■ Chapter 04 ■ Future Outlook and Policy Response Direction ■ Chapter 01 ■ ■ Chapter 02 ■ ■ Chapter 03 ■ 221 Chapter 04 Future Outlook and Policy Response Direction Response Policy and Outlook Future 04 Chapter technologies technologies such as diagnosis, which is a part of it, as the subject of protection under the patent system to activate the invention of medical practice in the era of infectious diseases. Lastly, overseas resources should be continuously secured through strengthening international new pathogens. researching securing and for cooperation Authors

Planning & Editing

Presidential Council on Intellectual Property Office of IP Strategy & Planning

Kang Byung-sam, Director General Yoon Byoung-soo, Director General, Intellectual Property Promotion Bureau Kim Jae-hyun, Director, Protection Policy Division Kim Hyun-tae, Deputy Director, Protection Policy Division Ki Do-hyoung, Advisor, Protection Policy Division

Researching & Writing

Lee Sang-hee, Research Fellow, IP Dispute Analysis Team

Korea Intellectual Lee Hye-min, Research Fellow, IP Dispute Analysis Team Property Protection Kim Ji-young, Assistant Researcher, IP Dispute Analysis Team Agency Jeon So-young, Research Fellow, Trade Secret Protection Center Kim So-hyun, Research Fellow, Public Patent Attorney Center

Korea Copyright Kim Hye-chang, Director, Law and Policy Research Team Commission Park Jeong-hun, Researcher, Law and Policy Research Team

Korea Copyright Hong Hoon-kie, Director, Investigation and Research Team Protection Agency Jeon Su-jeong, Section Chief

Korea Institute of S&T Choi Kwoung-hee, Research Fellow, Office of National R&D Evaluation and Analysis Evaluation and Planning Kim Jin-hee, Researcher, R&D Results Diffusion Division Korea Health Industry Lee Ju-ha, Principal Researcher, Industry Analysis & Policy planning Team Development Institute Ulsan Intellectual Lee Jong-jin, Consultant Property Center 2019 Annual Report on Intellectual Property Protection Enforcement in Korea

Issue Date December, 2020 Publisher Chung Sye-kyun, Jong Sang-jo Chairperson of Presidential Council on Intellectual Property

Publishing Presidential Council on Intellectual Property Institute #608, Finance Center Ⅱ, 194 Gareum-ro, Sejong-si, 30121, Republic of Korea Tel 044)202-4243 Fax 044)202-6050 Website http://www.ipkorea.go.kr Translation Worlsys 1644-8875 GPRN 12-B552783-0000040-10 ISSN 2384-1338

ANNUAL 2019 REPORT on Intellectual Property Protection Enforcement in Korea