Everything You Need to Know About PCT Applications: Procedures, Strategies, and Funding Opportunities

Global market competition is becoming increasingly fierce. One of the most crucial factors in securing a competitive edge is patent protection. Without exclusive rights to your products or technologies, you risk imitation and unauthorized use by rival companies. For businesses seeking patent coverage in multiple countries, the Patent Cooperation Treaty (PCT) application has become an indispensable choice. Below, we explore what a PCT application is, outline its procedures, and discuss how to leverage it for global expansion. We also introduce various support programs that can ease the financial burden for small and medium-sized enterprises (SMEs).

1. What Is a PCT Application?

A PCT application is an international patent filing system governed by the World Intellectual Property Organization (WIPO) under the Patent Cooperation Treaty. With over 155 member countries as of 2024, the PCT makes it possible to initiate patent protection in multiple jurisdictions using a single international patent application.

1.1. Difference Between Conventional Individual Filings and a PCT Application

• Conventional Individual Filings: You file separate patent applications in each country, each requiring different languages, paperwork, and procedures.
• PCT Application: You file one set of documents (in one language), which can later form the basis for patent protection in many countries. This streamlined approach reduces initial costs and administration.

1.2. Benefits of a PCT Application

• Centralized Process: Evaluate the potential for patent protection across global markets before committing to individual national filings.
• Extended Timeframe: Delay national filings by up to 30 months (31 months in some jurisdictions), providing more time to refine your strategy.
• Scalability: A single filing opens the door to patent rights in most PCT member countries.

2. Main Steps in a PCT Application

The PCT process is typically divided into two major phases: the International Phase and the National Phase.

2.1. International Phase

1. Filing the Application: Submit your application to WIPO’s International Bureau or your local patent office (e.g., the Korean Intellectual Property Office).
2. International Search: An International Searching Authority (ISA) examines your application and issues an International Search Report (ISR) alongside a Written Opinion.
3. Publication: Eighteen months from the earliest filing date, the application is published internationally.
4. Optional International Preliminary Examination: You can request an International Preliminary Examination Report (IPER) to gain further insights into patentability.

2.2. National Phase

After the international phase, you move to the national (or regional) phase in the countries where you seek protection. Each national patent office examines the application under its own laws, ultimately deciding whether to grant the patent.

3. Why Use the PCT Route?

3.1. Cost Effectiveness

A PCT application helps reduce initial filing and administration costs. Although there will be fees when entering individual countries (national phase), the upfront efficiency of filing once—rather than individually in multiple jurisdictions—often results in substantial savings, especially if you plan to protect your invention in three or more countries.

3.2. Strategic Planning for Global Patents

PCT applications allow you to gather valuable information (e.g., from the International Search Report) before committing to national filings. This insight informs your decision on where and how to invest further in patent protection.

3.3. Flexibility in Market Selection

You have up to 30 months to choose which countries you want to enter. This window lets you monitor market trends, finalize R&D, or adjust your commercialization plans before incurring substantial costs in each target country.

3.4. Enhanced Corporate Image

A PCT filing showcases your commitment to global innovation. This can be a positive signal to potential investors, partners, and customers.

4. Detailed PCT Procedures

1. Application Preparation
   Draft a comprehensive patent specification, including detailed descriptions and drawings. Consider working with a qualified patent attorney to ensure your documents comply with international standards.
2. International Search
   An accredited authority investigates prior art to assess novelty and inventive step. You receive an International Search Report (ISR) that can guide refinement of the claims.
3. National Phase Entry
   When you enter the national phase in each selected country, you must meet local filing requirements. Each national office then examines the application under its specific laws and procedures, ultimately granting or rejecting the patent.

5. PCT Success Strategies

1. Collaborate with Experts
   Since a PCT application involves international procedures and legal nuances, consulting experienced patent attorneys or patent specialists is crucial.
2. Choose Target Countries Wisely
   Although the PCT covers over 155 countries, it isn’t always necessary—or cost-effective—to file in every single one. Focus on markets that hold the highest commercial potential for your technology.
3. Manage Timelines Properly
   While the PCT system provides an extended window of up to 30 months before entering national phases, use that time wisely to handle translations, conduct further R&D, or assess competitive landscapes.

6. Why PCT Applications Matter

1. Global Market Competitiveness
   With accelerating globalization, competition rarely stays within national borders. A PCT application can protect your technologies and bolster your global expansion strategy.
2. Exclusive Rights to Exploit Technology
   A strong patent portfolio prevents competitors from using your innovation and helps secure stable revenue streams.
3. Investment Attraction
   Demonstrating that you’re safeguarding your IP in major markets can boost investor confidence and secure funding.

7. Potential Pitfalls and Cautions

1. Costs of National Entry
   Although initial costs may be lower, national phase entry fees, translation costs, and maintenance fees for multiple countries can become significant.
2. No Guaranteed Registration
   Even with a positive International Search Report, each national office may refuse to grant a patent. The final decision rests with individual patent examiners under local laws.
3. Expert Drafting Required
   A poorly written application that fails to meet national requirements or lacks clarity in the technical description can lead to rejection.
4. Public Disclosure Risks
   Eighteen months after filing, your application is published worldwide, revealing details of your invention to potential competitors.
5. Timing Challenges
   You must manage translations, local requirements, and added documentation within strict deadlines. Missing a deadline can result in losing the opportunity for patent protection in that country.
6. Mismatch Between Technology and Market
   Not all inventions need worldwide protection. If your invention is only applicable in a niche local market, a PCT application might be an unnecessary expense.
7. On-Going Maintenance Costs
   Once granted, patents require annual maintenance fees in each country. The cost of keeping multiple patents active can be substantial over time.

8. Funding Programs for SMEs

Filing international patent applications can be costly, especially for small and medium-sized enterprises (SMEs). Fortunately, there are several support programs available in Korea that help reduce the financial burden and facilitate global market entry.

8.1. Innovation Voucher Program (Typically Announced in December)

• Offers financial support for international patent filings.
• Fine Patent & Law Firm is a registered service provider under this program, with grants available up to KRW 15 million (approximately USD 11,000).
• Depending on the firm’s financial status, the self-funded portion ranges from 15% to 25%.

8.2. Export Voucher Support Program (Twice a Year: Around December/January and April/June)

• Available even to SMEs with no prior export record, making it ideal for those in the preparatory stage of overseas expansion.
• Funds are provided by ministries such as the Ministry of Trade, Industry and Energy (MOTIE) or the Ministry of SMEs and Startups (MSS), covering patent filing costs and other international market-entry expenses.

8.3. Intellectual Property (IP) Center Support (Typically Announced Early Each Year)

• Various programs cover both domestic and international patent expenses.
• IP Baro Support: Funding for local and overseas patent filings.
• IP-Based Global Expansion: Up to KRW 70 million (approximately USD 51,000) for overseas filings, depending on the program’s specific guidelines.

Conclusion

A PCT application is far more than a tool for “multi-country patents”; it’s a cornerstone of a robust global strategy. By filing once under the PCT, you gain valuable time and flexibility to make key market decisions and refine your IP roadmap.

However, navigating the PCT process requires careful planning, strategic thinking, and a thorough understanding of international legal standards. Fine Patent & Law Firm offers expert guidance to help you successfully manage your PCT filings—from the initial drafting stage all the way through national phase entries—enabling you to focus on what you do best: innovating and growing your business on the global stage.