A Guide to App Patent Registration in South Korea

The advent of smartphones with the launch of the iPhone in 2007 has fundamentally transformed our daily lives. As of 2023, the number of smartphone users worldwide has surpassed 6.8 billion, and the number of apps registered in app stores exceeds 5 million. According to App Annie's State of Mobile 2022 report, global app spending reached $170 billion in 2021. Since the smartphone revolution began, the app market has grown rapidly worldwide, and the importance of app patents has also increased significantly.

1. The Importance of App Patents

In the digital age, apps have become core assets for businesses. Whether a startup or a large corporation, apps that offer unique features and user experiences are crucial for competitiveness. For this reason, app patents are recognized as important strategic assets for businesses, going beyond mere protection mechanisms.

2. What is an App Patent?

An app patent is an intellectual property right that legally protects the unique functions, processes, designs, or technical solutions of a mobile application. Unlike copyright, which simply protects software code, it comprehensively protects the functional ideas and implementation methods of an app.

Examples:

Amazon's '1-Click' purchase patent (US5960411) protects the functional aspects of an app.
Apple's slide-to-unlock patent (US7657849) protects the visual elements and user interface of an app.
Korean companies such as Toss and Kakao also hold numerous patents related to apps.

3. Can App Ideas Be Patented?

App ideas can be rejected for patent registration as they are considered "abstract ideas." For example, since the Alice Corp. v. CLS Bank International ruling in the US in 2014, obtaining software patents has become more difficult not only in the US but also in South Korea.

However, app patents can still be registered for technologies that provide concrete and useful results, rather than just simple ideas or mathematical formulas.

Example: The idea of "an app that calls a taxi with a smartphone" is difficult to protect with a patent. However, if the app presents specific technical solutions such as unique algorithms, user location confirmation methods, or driver matching systems, the chances of patent registration increase.

Therefore, it is important for app developers and companies to develop concrete and innovative technical solutions beyond the level of simple ideas and clearly describe them in patent specifications. It is also a good idea to get a preliminary evaluation of the patentability of the technology before filing a patent application.

4. Advantages of App Patents

Technology Protection and Investment Attraction: App patents encourage investment in research and development by legally protecting developers' innovative ideas. For startups, a patent portfolio is an important way to demonstrate technological superiority to investors.

Securing Market Leadership: Exclusive rights give companies the opportunity to stay ahead of the competition. For example, Amazon's '1-Click' purchase patent was valid from 1999 to 2017, and during this period, Amazon had exclusive use of this feature.

Licensing Revenue: Additional revenue can be generated by licensing patented technology to other companies. For example, IBM generated $1.19 billion in revenue from patent licensing in 2017 alone.

Knowledge Dissemination through Technology Disclosure: The technical content is disclosed during the patent application process, which can contribute to overall technological development. This is because other developers can build new innovations based on this information.

5. Challenges of App Patents

Potential Hindrance to Technology Development: Overly broad or vague patents can limit the creativity of other developers. For example, the 'rounded corner' design patent (US D670,286) acquired by Apple in 2012 caused much controversy.

Patent Troll Issue: NPE companies, also known as patent trolls, generate revenue solely through patent litigation without actually manufacturing products. There are reports that the direct cost of patent trolls from 2011 to 2016 reached $80 billion.

High Cost Burden: The cost of patent application, maintenance, and litigation preparation can be a burden for small and medium-sized developers.

Discrepancy with the Speed of Technological Development: App technology changes rapidly, but the patent examination process is relatively slow. In the case of the Korean Intellectual Property Office, patent examination takes an average of 26 months (as of December 2023).

6. Patent Strategies for the Global Market

Since apps are products targeting the global market, it is important to secure patents not only domestically but also overseas. PCT (Patent Cooperation Treaty) applications allow for simultaneous patent applications in multiple countries, which can serve as a stepping stone for global business expansion.

7. Patent Strategies Startups Should Pay Attention To

Startups may have limited funds, making it difficult to file patents for all technologies. In such cases, the following strategies can be considered:

Core Technology-Focused Patents: Prioritize patent applications for core technologies essential for business success.
Non-Disclosure Agreements (NDAs): Prevent technology leakage through NDAs even before patent applications.
Building an Intellectual Property Portfolio: Strengthen the intellectual property portfolio by securing various patents and trademarks in the long term.

8. Conclusion

App patents are important tools for protecting and promoting innovation in the digital age. However, a balanced approach is needed to ensure they do not become obstacles to technological development. It is crucial for companies and developers to cooperate in creating a healthy app ecosystem.

App patents should ultimately evolve in a direction that protects innovation while enabling greater innovation. This is not simply a legal or technical issue but is closely related to the fundamental question of how our society will fairly enjoy the benefits of digital innovation.