Suho Lee, Executive Director (Ph.D.)
Five Key Points of Patent Management Activities
○ Recognize that patents are a useful tool for R&D.○ The three pillars of corporate activities consist of management, R&D, and patents.○ Patents provide opportunities to expand human and technological networks.○ Break away from the perception that patents are a "money-consuming burden."○ Actively utilize government support policies.
The history of patents is longer than one might think. Some trace its origins back to around 600 BC in Greece, where exclusive rights were granted for one year to those who created the "Sibathes Dish." Others cite the English monopoly system of 1624 as the starting point. Systematic patent laws were first adopted in the United States in 1790 and in Japan in 1885. In Korea, the Imperial Ordinance on Patents was enacted in 1908, followed by the establishment of the Korean Patent Act in 1946.
Despite its long history, the importance of patents has not been widely recognized by the general public or even many business leaders. However, recent patent disputes, such as the battle between Samsung and Apple, have demonstrated how deeply patents are embedded in modern industries. Nonetheless, apart from major corporations like Samsung and a few specialized companies, many businesses still struggle to create added value through patents.
The principle that "patents and corporate management are inseparable" holds true, but its effectiveness depends on how patents are utilized. So how can companies effectively leverage patent activities to enhance their economic value?
First, the greatest value of patents lies in their usefulness as a tool for R&D. The essence of the patent system is the coexistence of private and public interests. By disclosing inventions through patent specifications, inventors receive exclusive usage rights for a certain period, thereby promoting technological utilization and advancement. Since patents are publicly available, anyone can analyze them to understand technological trends. Recognizing this fact is the starting point of effective patent activities.
Before the 2000s, it was common practice to apply for patents only after R&D was completed. However, today, by analyzing existing patents, companies can set research directions in advance, enhance technological completeness, and even preemptively avoid disputes. Leading nations and companies begin their R&D policies and projects by first searching and analyzing prior patents and research papers. Patent research helps assess the technological strength and market value of competitors and allows companies to strategize effectively while mitigating risks.
Second, patents are not just supplementary to corporate management; rather, they form an essential pillar alongside management and R&D.
Many businesses have traditionally used patents defensively to protect their markets from competitors. However, patents can also serve as powerful tools for acquiring new technologies, creating markets, and securing market dominance. Moreover, patents are recognized as tangible assets that can be used as collateral for business funding or directly traded. They also serve as a measure of a company’s technological competitiveness.
Third, companies should proactively use patent activities to expand their human and technological networks. In the process of analyzing competitors’ technologies and devising response strategies, companies interact with patent professionals and various industry experts across time and space, thereby strengthening their network.
Fourth, the perception that patents are merely a "money-consuming burden" needs to change. Although many recognize the value of patents, they often view them as excessively costly.
Each year, over a million patents are filed worldwide, yet only about 1-5% of them are effectively utilized, even among leading enterprises. Businesses need to focus on creating core and fundamental patents that contribute significantly to commercial success and technological progress. However, even patents that do not qualify as "core patents" can play an essential role in a company’s overall technical and management strategy—similar to how proteins function in the human body.
Lastly, companies should actively leverage government support policies related to patents.
The government provides various support programs for patent activities, particularly for key industries and small to mid-sized enterprises. Organizations such as the Korea Intellectual Property Strategy Agency, the Korea Intellectual Property Protection Agency, the Korea Invention Promotion Association, regional intellectual property centers, and local governments offer assistance in patent applications and even in establishing comprehensive technology strategy roadmaps at minimal cost.
Patents are no longer an option but a necessity in corporate management. Companies that actively incorporate patent strategies into their business policies will continue to expand their foothold in the market. I look forward to seeing more businesses take an interest in patents and their strategic applications.
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