The Study of patent management Technology effecting industrial Economy.

LEE JU HYUNG

Changing intellectual property rights, namely industrial property is a new paradigm that intangible asset has more portion than tangible asset in company's value so managing patent technology is directly connect with company's survive.

Patent, technology or tangible and intangible asset's market value is increasing every year for evaluate company's value. This is the trend in recent years. From this trend, 'patent troll' is created to attack company's core ability which is patent technology to earn loyalty and settlement money from company. There were many examples that some of the country's representative company are damaged from patent troll.

  Especially, our companies lined up more in manufacturing business than service business. For this reasons, we are not feel free for attacked by patent troll. We need to make some long term strategy.

Patent troll already targeting to some IT business such as Samsung electronics, LG electronics, Hynix semiconductor. And large conglomerates are paying money to intellectual ventures. Patent troll will extend business area to the new growth power like environment, energy, and bio technology. To get our company’s core abilities, foreign rival will trying to leak out frequently. This trend will going to more seriously.

Some days ago, one of the manager who is working at CJ group located in Korea. He was charged without detention because he reveals secrets to rivals. Secrets were lysine and nuclear acid which was developed by CJ who put the money about one hundred million won.

Companies have to tighten security level to protect company’s core abilities and human resources.

According to changing global industry environment, centered to intangible assets, the paradigm is converted so patent business is prevalent to the world. Some patent troll is misusing this paradigm that our company had damages. Because factor of production is changing to technology, information from land, resources company’s competitiveness is converted to intangible assets like brand, design, etc. These are the reasons for this study.

Facing lawsuit with patent troll, companies are paying large sum of money to troll because they are worried about to lose market that court could judge to do not selling the product according to the American patent law. So patent troll is using this for maliciously. Companies need to strength capability to check patent troll’s patent to do not infringe rights. We need to occupy patent in advance to block sue. We need aggressive patent strategy rather than defensive strategy. This is quality before quantity.

Also technology management through patent, open public is the rule. This could difficult to secure competitiveness. For example, Coca-Cola never make public that making process since over 100 years. This could be one of the secret strategy not to have patent but if anybody could develop idea you should have patent.

Patent troll have some right +. Some of the managing knowledge property company is called patent troll because they don’t have aim to implement patent, they only want to preoccupy idea to earn profit.

This activity can hamper company’s production activities. But most of the patent is made by individual who are fall into financial problem or lack of management skills. If patent troll buy this patent, idea could be come into the world with real product. Their idea is not going to die.

I want to contribute to economic industry with this fusion study which is combined with humanities and science to use compound word “We” and “Economy”(WE-conomy) not the I, with creative economic value by patent technology management, and with knowledge and experiments.

Korea began to give preferential treatment to specialized workers and technologies in 1970s and 1980s as people realize its importance in the world. At that time, Korea earned foreign currency through specialized workers. But, it is time to invent and acquire intellectual rights, patent, to lead global market as Korea has global competitiveness in the world.

Patent technology management refers to economic technique that increases business value created by something new not by nothing. For example, most people think red blood, not white blood. If such stereotypes can be thought outside the box, patent technology management expert can be the economic president for Korean and Chinese industrial economy in near days.

Ten years ago, most people had thought that China just had cheap price and huge population but did not have international competitiveness as it produces low quality ‘Made in China’ product. But, Chinese economy is rapidly growing in recent years. It will rise to no. 2 in world economy with resources of 1.3billion populations, worldwide rich companies, trade surplus more than 10billion dollars in every month and 10% economic growth in every year.

As China held 2008 Beijing Olympics and Shanghai Expo, China obtained original technology producing indispensable techniques and it triggered China to jump into knowledge industry nation in the world. Chinese government promotes official intellectual property based human resource development plan which is ‘hundred. Thousand. Million. Intellectual property human resource’ as China recognizes the importance of patent. It sets intellectual properties as one of three main national strategies. To have an international competitiveness, Korea also needs practical implications in response to increasing business management risk by ‘patent troll’

Patent management means not only increasing asset value through patent application and possession of patent but also maximizing business competitiveness and profit based on technological know-how that can create strategic future added value. According to ‘international intellectual property rights index’ by World Intellectual Property Organization (WIPO), Korea acquired 102.6 patent applications per one billion GDP and 3.3. patent applications per one million R&D investment which means number 1 in patent productivity in the world

Korea is ranked number 5 as patent nation. In 2010, there were 9686 PCT international patent applications and over 34trillion Korean wons were invested in patent R&D by companies, universities, and research center. It is 3.37% in the ratio of GDP to R&D investment that is fourth highest investment nation after Sweden, Finland, and Japan. But, managing patent is inadequate. In 2008, there was 3.1 billion dollars technology trade deficit because loyalty payment was much higher than technology export. Korea’s American patent possession level is around one over seven of Japan and one over three of Taiwan. Domestic mobile phone company paid 5 trillion dollars to Qualcomm company for 10 years. Lots of technologies that acquired international patent died out or sold at cheap price. Especially, it is very vulnerable to lawsuit led by over 200 patent trolls in the world. This research points out that leader has to focus on strong patent managing. There is a tendency of increasing in patent management fee as patent dormant ratio by universities and government-support research centers is over 80%.

Korean and Chinese government has to recognize the importance of patent management for effective use of intellectual properties. So, they can educate Korean and Chinese companies on its importance in industrial economy to have strategic portfolios of core, original, and standard patent that can lead world economy in future.

Students who have creative ideas will be the starting point for strong patent management. There has to be patent technology management expert to control the patent from applications to managing and valuation. It will protect the right of intellectual property that creates original technology and added value to company.

This research focuses on new understanding of PMT and its impaction on industrial economy through Korean and Chinese patent technology management in response to patent troll.

( PMT Industrial Economics, patent troll, management Technology )