Annual Report 2000
`
`www.kipo.go.kr
`
`The Korean Intellectual Property Office
`
`Petitioner's Exhibit 1034
`Page 001
`
`

`

`Overview of KIPO Administration
`Overall Review of the Year 2000
`Constant Expansion and Stable Diffusion of Intellectual Property Administrative Information
`Streamlining KIPO s Administrative Procedures and Operations
`IPRProtection and Heightened Enforcement
`Commitment to the Advancement of the IPR Legal System
`Encouragement of Invention and Support for its Commercialization
`Human Resource Development Activities
`
`Strengthened International Cooperation in the Field of IPR
`
`Cheomseongdae (“Star Gazing Tower”) Observatory
`Built in 634 A.D. during the reign of Queen Seonduk, the 27th Ruler of the Shilla Dynasty.
`
`Petitioner's Exhibit 1034
`Page 002
`
`

`

`LEEM, Laegue
`Commissioner
`
`Foreword
`
`www.kipo.go.kr 2
`
`Petitioner's Exhibit 1034
`Page 003
`
`

`

`Annunal Report 3
`
`In today’ s economic environment, often called a knowledge-based economy, knowledge and information function as
`
`sources of value-added creation and the crucial element of competitiveness. The enormous wave of metamorphoses lead by
`the information technology revolution and further integration of the global economy has shattered the territorial separation of
`national boundaries and the world economic system has entered into an era of infinite borderless competition.
`
`In such a knowledge-based-economic society, it is acknowledged that IPRs, such as patent and trademark, are indispensable for
`economic management and development in the 21st century from the view point of providing incentives for consistent
`technological innovation. In addition, protection and nurturing of such intellectual properties have emerged as vital tasks for
`the continuous advancement of the national economy.
`
`The Korean Intellectual Property Office (KIPO), which is responsible for managing the institutional infrastructure for the
`support of IPR creation, acquisition, and utilization, has continued in the last year to make every effort to aggressively cope
`with the demand of today’ s changing innovation environment.
`
`To this end, KIPO has employed an open-door policy for more efficient IPR administration corresponding to international
`harmonization trends and for the improved convenience of customers. At the same time, KIPO has consistently maintained its
`policy to deliver a superior quality of examination and trial examination through fostering the expertise of examiners and trial
`examiners as well as improving various procedures and practices. In addition, KIPO has realized the accurate and prompt
`handling of overall administrative procedures through systematically enhancing the computerized office environment.
`
`For the effective implementation of the above missions, KIPO has proposed three primary visions that intellectual property
`administration should abide by in the 21st-century knowledge-based-economy: IPR administration endeavoring to be the
`world’ s best, IPR administration leading social transformation into a knowledge-based economy, and IPR administration rooted
`in the public’ s daily life. Under these three visions, KIPO has set up and implemented 67 key directives and 468 detailed action
`plans.
`
`KIPO’ s efforts, represented by the Combined IPR Administration Innovation Project, were enhanced by the adoption of Total
`Quality Management System (TQM) and Knowledge Management System principles, widely used by private enterprise
`management, for the heightened productivity of IPR administration and significant advancement of the IPR system. KIPO’ s
`efforts, which are based upon the entire staff’ s voluntary participation and experimental spirit, have aimed at the expansion of
`customer satisfaction and begun to offer IPR administrative services of a higher quality.
`
`With the foundation of efficient organizational operation via internal innovation, KIPO will actively participate in the various
`international activities and the process of establishing new standards in the IPR field. Also, KIPO will keep pace with the world’
`s efforts for harmonization and advancement of IPR administration.
`
`I hope this Annual Report helps you to better understand the IPR system and the current status of IPR-related issues in Korea.
`
`Sincerely,
`
`Petitioner's Exhibit 1034
`Page 004
`
`

`

`Table of Contents
`Table of Contents
`
`Haesikye
`A traditional Korean sun dial.
`
`Petitioner's Exhibit 1034
`Page 005
`
`

`

`Foreword
`
`Overview of KIPO Administration
`
`Overall Review of the Year 2000
`1. Applications
`2. Examinations
`3. Registrations
`4. Appeals/Trials
`
`Constant Expansion and Stable Diffusion of Intellectual Property Administrative Information
`1. The Launch of KIPOnet
`2. Stabilization and Refinement of the KIPOnet Operation
`3. International Cooperation in the Field of IP Information Technology
`
`Streamlining KIPO's Administrative Procedures and Operations
`1. Practice Efficiency in Examination and Appeal/Trial Procedures
`2. Roles of International Searching Authority and International Preliminary Examining
`Authority under the Patent Cooperation Treaty
`
`Commitment to the Advancement of the IPR Legal System
`1. Improvement of the Patent and Utility Model Systems
`2. Revision of Trademark and Industrial Design Laws
`3. Appeal/Trial System Revisions
`4. Customer Service Improvements
`5. Legal Reform in the Newly-Emerging Technology Fields
`
`IPR Protection and Heightened Enforcement
`1. Legal Improvement on the IPR Protection System
`2. Reinforced Anti-Counterfeiting Activities
`3. Staff Training and Public Awareness Campaigns
`
`Promotion of Invention and Support for its Commercialization
`1. Deployment of the SME IPR Acquisition Campaign
`2. Circulation of Patented Technologies
`3. Assistance for Invention Commercialization
`4. Trend Research and Utilization of New Technology Development
`
`Strengthened International Cooperation in the Field of IPR
`1. Multilateral Cooperation
`2. Bilateral Cooperation
`
`Human Resource Development Activities
`1. The Major Functions of International Intellectual Property Training Institute (IIPTI)
`2. The Major Activities of IIPTI
`3. Training Results and Plans for 2000 and Beyond
`
`A. Statistics
`B. Organization Chart of KIPO
`C. Flow Chart for Examination
`D. Intellectual Property Related Organizations & Associations
`
`2
`
`6
`
`10
`
`14
`
`16
`
`20
`
`24
`
`26
`
`28
`
`32
`
`36
`58
`60
`65
`
`Petitioner's Exhibit 1034
`Page 006
`
`

`

`KIPO has revised and made provisions for implementing IPR-related laws and regulations in
`order to prepare for bringing the legal system in line with international standards.
`
`Overview of the
`KIPO Administration
`
`The 21st century will have knowledge-based societies which will be more dependent upon
`creative knowledge and information than ever before. Today’s world is already experiencing the
`information and digital revolution era. In this regard, IPR will extend its role as the locomotive of
`the 21st-century knowledge-based society.
`
`In the 21st century, with such new challenges, the role of the government organization in charge
`of IPR affairs is acknowledged as more crucially important than ever before. In coping with
`today’s trends, KIPO is expanding its infrastructure to transform Korea to a knowledge based
`society via striving for the provision and diffusion of technology and encouraging technological
`innovation and invention.
`
`KIPO’s key IPR policy emphasizes further technological development, the implementation of an
`IPR system for appropriate and effective IPR protection, as well as infringement prevention, and
`the creation of a friendly environment to promote foreign investment and increase trade.
`
`Further to this policy, KIPO has launched diverse efforts for system revision, especially for
`prompt and accurate examination and appeal/trial examination for earlier right acquisition
`through securing excellent examination expertise and expanding the scope of prior art search
`out-sourcing.
`
`During the year 2000, the highest number of IPR applications ever submitted were recorded at a
`total of 282,767. This indicates that the nation-wide management innovation and restructuring
`efforts for overcoming the economic crisis for the last couple of years have begun to bear fruit.
`Despite significant increase in applications, KIPO has taken measures to maintain the pendency
`period at the world level and to improve examination quality and productivity. The examples are:
`
`- Greater expansion of out-sourcing scope of prior art search
`- Enhancement of computerized examination systems to effectively assist examiners.
`- Establishment of the Examination Review Division and implementation of the Merit Award
`System for Excellent Examiners
`
`www.kipo.go.kr 6
`
`Petitioner's Exhibit 1034
`Page 007
`
`

`

`- Improving the effectiveness of examination practices through various efforts such as the
`activation of the group examination system for applications with multi-fold technologies.
`- Maintaining the pendency period of 20.6 months for patent and 9.8 months for trademarks
`with the first action standard.
`
`Furthermore, KIPO opened the Home Filing Era by launching the world’ s first full-scale on-line
`electronic application system through the Internet. KIPO focused on system stabilization and
`high performance upgrades in order to establish the base for a Cyber IP office and provided
`customer oriented IP services.
`
`In addition to these IPR management and operation revisions, KIPO has revised and made
`provisions for implementing IPR-related laws and regulations in order to prepare for bringing the
`legal system in line with international standards.
`
`First of all, KIPO streamlined the procedures for IPR acquisition, enhanced the protection levels,
`and at the same time internationalized the IPR legal system by actively introducing the current
`international standards.
`
`- Improvement of the amendment system, appeal/trial system, and technology evaluation
`system of utility models by revising the Patent Law and the Utility Model Law.
`- Revision of the Trademark Law in order to meet the requirements for accession to the
`Trademark Law Treaty and the Madrid Protocol.
`
`Annunal Report 7
`
`The 36th Annual Invention Day Ceremony at COEX Auditorium in Seoul, held May 19, 2001, and attended by (Left to right)
`Lee, Sang hee, Korea Invention Promotion Association President, Minister Chang, Che shik of the Ministry of Commerce,
`Industry and Energy, President Kim, Dae jung, First Lady Lee, Hee ho, and KIPO Commissioner Leem, Laegue.
`
`Petitioner's Exhibit 1034
`Page 008
`
`

`

`- Revision of the Unfair Competition Prevention and Trade Secret Protection Law in order
`to strengthen the well-known trademark protection.
`
`In the year 2000, KIPO achieved a conspicuous outcome in preparing the patent protection
`standards for e-commerce, bio-technology, and new technology fields.
`
`- As patent applications for business methods utilizing the Internet increases, KIPO formulated
`the Examination Guideline for E-commerce Related Inventions to clarify the examination
`standards and strive for early rights acquisition through an accelerated examination process of
`inventions with a short life cycle.
`- KIPO revised the Examination Guideline for Bio-technology Related Inventions so that a patent
`may be granted only where a DNS sequence listing can prove the concrete utility for a certain
`disease treatment and rejected where a DNA sequence listing cannot prove its function.
`
`KIPO has also unfolded a diverse IPR enforcement approach to enhance IPR protection such as
`crackdown activities for the prevention of counterfeit goods manufacture and circulation.
`
`- KIPO revised the related provisions in order to easily appraise the damage amount and to
`increase the penalty to maximum 7 years imprisonment and maximum fine of 100,000,000
`Won.
`- the Revised Unfair Competition Prevention and Trade Secret Protection Law also reflects
`Korea’s will to strengthen and increase anti-counterfeiting activities and raise the penalty
`against trade secret infringement.
`- KIPO plans to continue its enforcement policy against counterfeit goods manufacture and
`circulation under the viewpoint that counterfeit goods encroach upon another person’s
`intellectual property rights, create an unfair business environment, and cause trade conflicts.
`
`Internationally, KIPO began acting as a PCT International Searching Authority (ISA) and
`International Preliminary Examining Authority (IPEA) on December 1, 1999. During the year
`2000, KIPO received 1,573 PCT requests and was ranked the 11th largest Receiving Office in
`the world. Simultaneously, KIPO’s ISA capacity is growing quickly with the 1,282 international
`search requests, and is now the 6th largest ISA in the world. KIPO has positively participated in
`the formulation process of international standards through multilateral cooperation with WIPO
`(World Intellectual Property Organization), APEC (Asia-Pacific Economic Cooperation), and
`WTO/TRIPs Council. At the same time, KIPO is expanding the scope of bilateral cooperation
`through heads meetings with major offices in the U.S.A., EU, China, and Japan.
`
`www.kipo.go.kr 8
`
`Petitioner's Exhibit 1034
`Page 009
`
`

`

`Atrium of the Daejeon Government Complex which houses KIPO as well as 10 other government agencies.
`
`Annunal Report 9
`
`At KIPO’s invitation, students from an elementary school tour the Inventor’s Hall of Fame at KIPO.
`
`Petitioner's Exhibit 1034
`Page 010
`
`

`

`A total 282,767 IPR applications were filed in 2000, the highest number of applications filed to
`date. This was an increase of 51,739 (22.4%) over applications filed in 1999.
`
`Overall Review of the Year 2000
`
`1. Applications
`
`A total 282,767 IPR applications were filed in 2000, the highest number of applications filed to
`date. This was an increase of 51,739 (22.4%) over applications filed in 1999. The increases of
`applications in each field are; 26.2% increase for patents, from 80,642 applications in 1999 to
`101,782 in 2000; 21.1% increase for utility models, from 30,650 applications to 37,120
`applications; 4.3% increase for design, from 32,404 applications to 33,806 applications; 26.0%
`increase for trademark, from 87,332 applications to 110,059 applications.
`
`The dramatic climb in applications was due to the increase of patent and trademark applications
`by 20 to 30% as the domestic market was revitalized concurrent to the economic recovery.
`Also, the government’s knowledge-industry-fostering policy contributed to the application
`increase in patents and utility models as the patent and utility model applications from newly
`established venture companies proliferated with the booming venture industry.
`
`Applications by domestic residents were recorded at a 23.2% increase over the previous year,
`(232,251 applications) comprising 82.1% of total applications. Applications filed by foreign
`nationals numbered 50,516. A 18.6% increase over the previous year, consisting of 17.9% of the
`total applications. Applications by Korean nationals still dominate the application pool. Among
`applications by foreign nationals, patent applications increased by 15.0% (24,672
`29,014), utility
`models increased by 11.6% (306
`346), design increased by 11.3% (1,533
`1,729), while
`trademark increased by 17.3% (16,070
`19,427). The comparison of foreign applications by
`country shows that the top three countries are: Japan (17,105 cases, 33.9%), U.S.A. (16,257
`cases, 32.2%), and Germany (4,199 cases, 8.3%), possessing 74.4% of the total foreign
`applications.
`
`www.kipo.go.kr 10
`
`Petitioner's Exhibit 1034
`Page 011
`
`

`

`Applications by Koreans and Foreign Entities
`
`Classification
`
`Patents
`
`Utility Models
`
`Designs
`
`Trademarks
`
`Number
`55,970
`
`24,672
`
`80,642
`
`30,344
`
`306
`
`30,650
`
`30,871
`
`1,533
`
`32,404
`
`71,262
`
`16,070
`
`87,332
`
`1999
`
`2000
`
`Percentage
`
`Number
`
`Percentage
`
`(Case, %)
`Increase over
`the previous year
`Ratio
`
`69.4
`
`30.6
`
`100.0
`
`99.0
`
`1.0
`
`100.0
`
`95.3
`
`4.7
`
`100.0
`
`81.6
`
`18.4
`
`100.0
`
`72,768
`
`29,014
`
`101,782
`
`36,774
`
`346
`
`37,120
`
`32,077
`
`1,729
`
`33,806
`
`90,632
`
`19,427
`
`110,059
`
`71.5
`
`28.5
`
`100.0
`
`99.1
`
`0.9
`
`100.0
`
`94.9
`
`5.1
`
`100.0
`
`82.3
`
`17.7
`
`100.0
`
`2.1P
`
`2.1P
`
`0.1P
`
`0.1P
`
`0.4P
`
`0.4P
`
`0.7P
`
`0.7
`
`Annunal Report 11
`
`Korean
`Foreign
`Total
`Korean
`Foreign
`Total
`Korean
`Foreign
`Total
`Korean
`Foreign
`Total
`Korean
`Foreign
`Total
`
`Total
`
`Application Status
`
`188,447
`
`42,581
`
`231,028
`
`81.6
`
`18.4
`
`100.0
`
`232,251
`
`50,516
`
`282,767
`
`82.1
`
`17.9
`
`100.0
`
`0.5P
`
`0.5P
`
`282,767
`
`231,028
`
`185,209
`
`Total
`
`254,099
`
`274,069
`
`240,195
`
`110,059
`
`101,782
`
`37,120
`
`33,806
`
`2000
`
`1995
`
`1996
`
`1997
`
`1998
`
`1999
`
`2000
`
`Patents
`
`Utility Models
`
`Industrial Designs
`
`Trademarks
`
`87,332
`
`80,642
`
`32,404
`
`30,650
`
`1999
`
`75,188
`
`57,393
`
`28,896
`
`23,732
`
`1998
`
`90,326
`
`85,062
`
`68,822
`
`78,499
`
`71,852
`
`59,866
`
`29,978
`
`29,859
`
`92,734
`
`87,065
`
`45,809
`
`28,491
`
`1995
`
`1996
`
`1997
`
`2. Examinations
`
`A. Patents and Utility Models
`
`KIPO changed the delivery performance measures to the first action standard to correspond to
`the international standard. In 2000, KIPO delivered a total of 137,117 examinations (patent
`examination: 68,338 and utility model examination: 68,779). Of the total 68,779 utility model
`registration applications, 28,236 (41%) applications were filed prior to July 1999, and did not
`
`Petitioner's Exhibit 1034
`Page 012
`
`

`

`qualify for processing under the Quick Registration System. However, 40,543 applications (59%)
`were filed and processed under the Utility Model Quick Registration System.
`
`B. Trademarks and Industrial Designs
`
`Trademark examination delivery increased by 12% to 83,358 in 2000 from 74,450 in 1999. This
`was a result of upgraded examination delivery speed based upon improving the functions and
`performance of the trademark search system. Designs examination delivery increased 7.6% from
`26,985 cases in 1999 to 27,540 cases in 2000. This was due to the creation of an efficient
`examination environment through the continuous revision and classification of the design
`examination references.
`
`3. Registrations
`
`The registered IPRs in 2000 numbered 126,261 which was a 14.8% decrease from the previous
`year. Renewed registrations by annual fee payment was 133,510 (27.9% increase) and the
`registration change-by- assignment was 118,898 (10.9% increase).
`
`According to the new registration trend, utility model registrations showed a consistent rate of
`increase at 26.9%, while registration of patent, design, and trademark decreased by 44.3%, 4.1%,
`and 6.6% respectively. Due to the economic crisis of 1998 and the 24 month average processing
`time from filing to registration, there was a 44.3% decrease in patent registrations.
`
`The new registration trend by industry shows that the electronic communication field, with
`cutting-edge technology, occupies 30,738 cases (40.1% of total 76,620 cases) and the machinery
`field with added-value bearing potential occupies 17,704 cases (23.1% of total cases).
`Registrations in these two fields occupy 63.2% of total cases.
`
`The comparison of registration ratios between individual and legal entities show that individual
`registration increased by 36.2% (47,729 cases), while registration by legal entities decreased by
`30.6% (78,532 cases). Registration by domestic residents occupies 84.1% of the total cases
`
`Registration Trend
`Classification
`
`Patents
`
`Utility Models
`
`Designs
`
`Trademarks
`
`Total
`
`1996
`
`16,516
`
`(32.0)
`
`9,191
`
`(12.8)
`
`20,192
`
`(18.9)
`
`26,464
`
`(
`
`11.2)
`
`72,363
`
`(7.3)
`
`1997
`
`24,579
`
`(48.8)
`
`13,713
`
`(49.2)
`
`24,633
`
`(22.0)
`
`42,484
`
`(60.5)
`
`105,409
`
`(45.7)
`
`1998
`
`52,900
`
`(115.2)
`
`25,717
`
`(87.5)
`
`24,931
`
`(1.2)
`
`59,611
`
`(40.3)
`
`163,159
`
`(54.8)
`
`1999
`
`62,635
`
`(18.4)
`
`32,868
`
`(28.0)
`
`19,636
`
`21.2)
`
`32,968
`
`44.7)
`
`148,107
`
`(
`
`9.2)
`
`(
`
`(
`
`(case, %)
`
`2000
`
`34,894
`
`(
`
`44.3)
`
`41,726
`
`(26.9)
`
`18,835
`
`4.1)
`
`30,806
`
`6.6)
`
`(
`
`(
`
`126,261
`
`(
`
`14.8)
`
`* Remark: Trademark renewal excluded, ( ) rate of increase over the previous year.
`
`www.kipo.go.kr 12
`
`Petitioner's Exhibit 1034
`Page 013
`
`

`

`Annunal Report 13
`
`Individual . Legal Entity & Domestic Residents . Foreigners Registration Trend
`
`Classification
`
`1996
`
`1997
`
`1998
`
`1999
`
`2000
`
`Status
`
`Nationality
`
`Individual
`
`Legal
`Entity
`Domestic
`Resident
`
`Foreigner
`
`Total
`
`Registration by Foreign Nationals
`
`Nationalities
`
`Japan
`
`U.S.A.
`
`Germany
`
`France
`
`United Kingdom
`
`Others
`
`Total
`
`* Remark: Trademark renewal excluded
`
`17,849
`
`(24.7)
`
`54,514
`
`(75.3)
`
`55,482
`
`(76.7)
`
`16,881
`
`(23.3)
`
`72,363
`
`(100.0)
`
`22,411
`
`(21.3)
`
`82,998
`
`(78.7)
`
`81,497
`
`(77.3)
`
`23,912
`
`(22.7)
`
`105,409
`
`(100.0)
`
`29,649
`
`(18.2)
`
`35,100
`
`(23.7)
`
`133,510
`
`113,108
`
`(81.8)
`
`(76.3)
`
`47,729
`
`(37.8)
`
`78,532
`
`(62.2)
`
`125,401
`
`117,366
`
`106,242
`
`(76.9)
`
`37,758
`
`(23.1)
`
`163,159
`
`(100.0)
`
`(79.2)
`
`30,842
`
`(20.8)
`
`148,208
`
`(100.0)
`
`(84.1)
`
`20,019
`
`(15.9)
`
`126,261
`
`(100.0)
`
`8,396
`
`5,933
`
`1,304
`
`826
`
`486
`
`3,074
`
`20,019
`
`15.4
`
`2.4
`4.1
`
`6.5
`
`Ratio
`
`29.6
`
`(case, %)
`
`Increase
`Rate
`
`36.2
`
`30.6
`
`9.4
`
`35.1
`
`14.8
`
`(case, %)
`
`41.9
`
`(9.4% decrease from the previous year) while registration by foreigners occupies 15.9% (35.1%
`decrease from the previous year). Foreign registration by nationality shows that Japan (41.9%)
`and the U.S.A. (29.6%) combined to possess 71.5% of total foreign registrations and that Japan,
`the U.S.A., and Germany were strong in patent registration while France and Switzerland were
`strong in trademark registration.
`
`By the end of 2000, the total registrations were 1,230,757. However, existing registrations were
`only 909,312 because 321,445 of the registrations (26.1%) expired due to nonpayment of annual
`fees, patent term expiration, right abandonment, and invalidation trials.
`
`4. Appeals/Trials
`
`Appeal/Trial requests in 2000 totaled 5,880 cases which was a 20.7% decrease in comparison to
`that of 1999. Appeals/Trials in patent and utility model were 2,585 (36.7% decrease) and
`appeals/trials for trademark and design were 3,295 (1.1% decrease). 2,963 appeal/trial cases were
`delivered in patent and utility model while 3,431 appeal/trial cases were delivered in trademark
`and design (total 6,394 cases). The number of delivered appeal/trial cases per single trial
`examiner was 94 in patent and utility model and 170 in trademark and design.
`
`Petitioner's Exhibit 1034
`Page 014
`
`

`

`The on-line application rate increased from 57.3% in January 1999,
`the early period of on-line application, to 87.3% in December 2000.
`
`Constant Expansion and Stable
`Diffusion of Intellectual Property
`Administrative Information
`
`1. The Launch of KIPOnet
`
`Since the early 1990s, KIPO has experienced a sharp increase in IP applications. Since 1995, the
`number of IP applications received has reached over 200,000 annually. KIPO realized that it could
`not handle the workload by the traditional method of manually handling paper-form documents.
`Therefore, KIPO began a project to automate IP administration procedures from filing, to
`receipt of documents, examination, registration, and finally, to the publication of official gazettes
`in November 1995. As a result, KIPO completed the development of the KIPOnet System in
`December 1998. The goals of KIPOnet development were to provide prompt and accurate IP
`administration service to applicants and researchers as well as to effectively cope with the ever-
`increasing demand for application examinations and appeals/trials within our Office.
`
`The launch of KIPOnet ushered in the era of home filing, in which applicants do not have to visit
`our office to submit applications. KIPOnet elevated the level of user service by enabling
`applicants to register their rights, inspect necessary application records, and request as well as
`receive miscellaneous certificates through on-line communications. KIPOnet also utilizes the
`Internet Video Conference System by which our office and users can communicate interactively
`with each other, resulting in a significant narrowing of the gap between the public and the
`administration office.
`
`2. Stabilization and Refinement of the KIPOnet Operation
`
`KIPOnet became fully operational in January 1999 along with the Internet On-Line Application
`System. It is functioning at an operating level of 99.83% and enjoys the popular support of users.
`
`KIPO has achieved the further advancement of the KIPOnet System since its inception. In order
`to improve users’ convenience, KIPO began the Same-Day Notification Service which enables
`applicants to confirm the acceptance status of on-line applications within one day. KIPO also
`initiated the On-Line Payment System through which applicants can make fee payments to KIPO
`from home, using Internet Banking.
`For the purpose of raising the stability and efficiency of program development, new programs are
`tested, before installation, on the KIPOnet operational environment within the Model Office, a
`virtual office environment which mirrors every function of KIPOnet. Launching the KIPOnet
`
`www.kipo.go.kr 14
`
`Petitioner's Exhibit 1034
`Page 015
`
`

`

`Annunal Report 15
`
`Quality Management System enabled KIPO to manage outputs, draw data maps, automatically
`analyze data errors, and systematically manage data history.
`
`KIPO also adopted a Single Sign-On System through the Integrated Management System and
`realized management automation to monitor the status of performance, breakdown, and
`repletion.
`
`KIPO reorganized the process of application document handling, formality examination, and
`digitization of paper documents and automated the electronic conversion of paper documents
`by establishing the Data Conversion Center.
`
`KIPO’s educational and promotional activities helped to obtain the
`record setting growth of the on-line application rate. KIPO
`consistently upgraded and distributed free of charge electronic
`application software. It also provided free training on electronic
`application software along with running the UHD (User Help Desk),
`Field Access Helper System, and Happy Call. In addition, KIPO
`designated 50 model universities for utilizing KIPOnet and delivered
`related lecture courses at the International Intellectual Property
`Training Institute (IIPTI). As a result, the on-line application rate increased from 57.3% in January
`1999, the early period of on-line application, to 87.3% in December 2000.
`
`3. Enhancement of International Cooperation in the Field of IP Information
`Technology
`
`KIPO is preparing to share IP-related information and materials, including priority documents
`with WIPO and other major IP offices, while working on dispatching KIPO’s IT experts to
`WIPO’s IMPACT project. KIPO is taking the firm position that the electronic exchange of PCT
`priority documents at the multilateral level with WIPO and participating WIPO’s IT projects are
`essential to establishing international IPR standards and promoting of IPR around the world.
`
`At the bilateral level, KIPO has held IT experts meetings with the Japanese Patent Office (JPO)
`twice in February and November, 2000 in order to strengthen cooperation in the IP
`administrative information field between Korea and Japan. In the meetings, the two offices agreed
`to continue discussions with an emphasis on the following agenda items: electronic filing systems,
`networking, data exchange, search systems, and search databases base including electronic
`exchange of priority documents and construction of a close circuit between the two Offices.
`
`KIPO has sent KIPOnet experts to Brazil to assess the status of computerization of the National
`Institute of Industrial Property (INPI) and to consult with them on their needs as requested by
`the INPI. As a result, KIPO established a cooperative partnership with INPI in the
`computerization of IPR administration.
`
`In addition, KIPO has discussed with the State Intellectual Property Office (SIPO), The People’s
`Republic of China, various issues associated with computerization.
`
`Petitioner's Exhibit 1034
`Page 016
`
`

`

`KIPO realized the pendency period of 20.6 months for patents and utility models by the end of
`2000.
`During the year 2000, KIPO received 1,573 PCT requests and was ranked the 11th largest
`Receiving Office in the world. Simultaneously, KIPO’s ISA capacity is growing quickly with the
`1,282 international search requests, and is now the 6th largest ISA in the world.
`
`Streamlining KIPO’s Administrative
`Procedures and Operations
`
`1. Raising the Practice Efficiency in Examination and Appeal/Trial Procedures
`
`A. Reducing the Pendency Period of Examinations and Appeals/Trials
`
`KIPO has changed the standard to monitor the examination handling procedure from the
`completion of an examination to first action to correspond with international trends. Under this
`new standard, KIPO realized the pendency period of 20.6 months for patents and utility models
`by the end of 2000 in continuation of 21 months of pendency period in the end of 1999. In the
`case of trademarks and industrial designs, the pendency periods of 9.8 and 7.1 months,
`respectively have been realized.
`
`Examination and Appeals/Trials Delivery Trend
`
`(Unit: Months)
`
`Year
`
`Patents . Utility Models
`Trademarks
`Industrial Designs
`Appeals/Trials
`
`End of
`1997
`36.0
`
`16.8
`
`11.0
`
`12.0
`
`End of
`1998
`28.1
`
`12.5
`
`7.3
`
`7.8
`
`End of
`1999
`23.6
`
`9.7
`
`7.2
`
`6.0
`
`End of
`2000
`20.6
`
`9.8
`
`7.1
`
`7.1
`
`Examination
`
`This is due to KIPO’s efforts to improve examination practices through expanded outsourcing of
`prior art search and IPC classification, the stabilization of examination evaluation system, and
`drastic reinforcement of the computerized office environment.
`
`The handling period of appeal/trial cases maintained the reduction trend by showing 7.1 months
`on average in the end of 2000 (10 months for patents and utility models and 5.0 months for
`trademarks and industrial designs).
`
`www.kipo.go.kr 16
`
`Petitioner's Exhibit 1034
`Page 017
`
`

`

`Annunal Report 17
`
`B. Quality Improvement of Examination and Appeal/Trial Process
`
`For the quality examination of intellectual property applications, KIPO implemented the
`Examiner Evaluation System by establishing the Examination Review Division.
`
`For patent and utility model examinations, KIPO introduced the Group Examination System for
`combined technologies and the Examiner Team System for enhanced communication among
`examiners and adopted the Examination Manual and Guideline. At the international level KIPO,
`in cooperation with the JPO, carried out the Joint Prior Art Search Project with the goal of
`mutual recognition of prior art search results for the applications that are filed in both countries.
`
`In trademarks and industrial designs, KIPO enlarged the search data base for higher quality of
`trademark examination, consolidated the examiner’s reference tools, and continued to provide
`on-the-job training to examiners.
`
`In the case of appeals/trials, KIPO made every effort to improve the performance of the trial
`examiners. KIPO repealed the Appeal Against Decision to Reject Amendment and Trial for
`Invalidation of Correction because they were procedurally insignificant and/or caused delays in
`examination and appeal/trial processes. For strengthened cooperation with the judicial branch,
`KIPO revised the law to exchange information on necessary areas such as infringement litigation.
`
`KIPO also adopted the New Ruling Writing Method for easy and clear understanding of the
`disputed issues between parties and introduced the Early Public Disclosure System of Scheduled
`Appeal/Trial Cases which allows mutual notice and review among the pending appeal/trial cases
`for the purpose of heightening the fairness and consistency among appeals with similar issues.
`
`The Appeal/Trial Closing Schedule Notification System, under which parties are notified of the
`closing schedule of appeals/trials 30 days in advance, was introduced to expedite the proceedings
`by encouraging early submission of responses and evidence and expand the opportunity
`opportunity concerned parties to submit opinions.
`
`The Expedited Appeal/Trial System was revised by narrowing the scope of the subject of the
`Expedited Appeal/Trial System and streamlining the procedures, taking into account that too
`broad a scope of the subject would hinder the effectiveness of the system.
`
`Petitioner's Exhibit 1034
`Page 018
`
`

`

`2. Carrying out the Roles of International Searching Authority and
`International Preliminary Examining Authority under the Patent
`Cooperation Treaty
`
`KIPO has successfully stabilized the function of PCT/ISA and IPEA even though it began to carry
`out the role of PCT/ISA and IPEA only 13 months ago, in December 1999. The year 2000 was
`the turning point in KIPO’s PCT history with the submission of a record setting 1,573 PCT
`applications. This record was an 84% increase over the previous year’s PCT applications, making
`Korea the 11th largest PCT filing country in the world. This was partially due to KIPO’s
`extensive public awareness campaign and designation of Korean as a search language for
`KIPO/ISA. Foreign PCT applicants also entering the Korean national phase were 15,133 (19.7%
`increase over p