Understanding the patent system

파인특허
August 23, 2024

Patents have played a crucial role in driving human innovation and technological advancement. As of 2023, there are approximately 17 million active patents worldwide, a 50% increase compared to a decade ago. Patents serve to protect new inventions, safeguard inventors' rights, and ultimately promote technological progress across society. However, the patent system has been the subject of much debate and criticism throughout its history.

1. History of Patents

The origins of the patent system can be traced back to the Venetian Republic in 1474. Venice was renowned for its glassmaking technology at the time, and to protect this technology, it established a system that granted exclusive rights to new inventions. This is considered the precursor to the modern patent system. Subsequently, the Statute of Monopolies, enacted in England in 1624, further formalized the patent system and served as a key driver of the Industrial Revolution. In the 18th century, judicial interpretations of patent law clarified the scope and requirements of patents. In the 19th century, the patent system spread globally as many countries, including the United States, adopted it.

South Korea's patent system was first introduced in 1908 with the promulgation of the Patent Ordinance of the Korean Empire. However, during the Japanese colonial period, the application of Japanese patent law and colonial rule restricted the inventive activities of Koreans, leading to a stagnation of the patent system. After liberation, the enactment of the Patent Act in 1946 and the establishment of the Korean Intellectual Property Office (KIPO) in 1977 led to the establishment of an independent patent system, enhancing professionalism and efficiency. Driven by rapid economic growth and technological development since the 1990s, the number of patent applications and registrations has increased explosively, and Korea has become equipped with a world-class patent system.

2. Definition and Legal Basis of Patents

A patent is a legal system that grants inventors the exclusive right to exploit their inventions for a certain period. Through patents, inventors can prevent others from unauthorized use, manufacture, or sale of their inventions. Patent rights are generally valid for 20 years from the filing date, during which time inventors can derive economic benefits from their inventions. According to the World Intellectual Property Organization (WIPO), approximately 3.4 million patent applications were filed worldwide in 2022.

The legal basis for patents lies in each country's patent laws and international agreements. The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) of the World Trade Organization (WTO) sets international standards for the protection of intellectual property rights, including patents, and 164 WTO member countries comply with this agreement.  

3. Types of Patents

Patents are classified into various types depending on their subject matter and scope of protection. The most common type is the utility patent, which protects inventions related to new products or processes. Design patents protect the aesthetic design of products, while plant patents protect new varieties of plants. In the United States, as of 2022, approximately 90% of all patents were utility patents, 9% were design patents, and less than 1% were plant patents.

4. Patent Application and Examination Procedures

To obtain a patent, inventors must file a patent application with the patent office of the relevant country. The patent application must include a detailed description of the invention, claims, drawings, etc., and an application fee must be paid. The patent office examines whether the claimed invention meets the patentability requirements and may reject it if it does not meet the requirements. The patent examination process generally takes 2-3 years, and the duration varies depending on the country and technology field. For example, as of 2023, the average examination period at the Korean Intellectual Property Office (KIPO) is about 26 months, and as of 2022, the average examination period at the United States Patent and Trademark Office (USPTO) is 23.3 months.

5. Requirements for Patentability

To be granted a patent, an invention must generally meet the following requirements:

  • Novelty: The invention must not have been publicly disclosed before.
  • Inventive Step: The invention must not be obvious to a person skilled in the art.
  • Industrial Applicability: The invention must be capable of industrial application.  

6. Effects and Benefits of Patents

Patents provide inventors with the following effects and benefits:

  • Exclusive Rights: Inventors have the exclusive right to use, manufacture, and sell their inventions.
  • Economic Benefits: Inventors can derive economic benefits, such as royalty income, through patent rights. As of 2022, global patent royalty revenue amounted to approximately $370 billion.
  • Technology Transfer: Patent rights promote technology transfer and accelerate technological innovation.
  • Investment Attraction: Patents demonstrate a company's technological capabilities and are advantageous for attracting investment. For startups, according to a 2018 USPTO study, patent-holding companies attract an average of 35% more investment than non-patent-holding companies.

7. Criticisms of Patents

While the patent system contributes to promoting technological development, it also faces the following criticisms:

  • Hindrance to Technological Development due to Monopoly: Patents grant exclusive rights to inventions, which can hinder subsequent innovation.
  • Increase in Patent Litigation: The increase in patent infringement lawsuits is burdening companies.
  • Patent Troll Problem: The issue of patent trolls seeking unfair profits by exploiting patents has arisen.
  • Software Patent Controversy: The appropriateness of software patents remains controversial.

8. The Future of the Patent System

The patent system is constantly evolving and developing. With the emergence of new technology fields such as artificial intelligence and biotechnology, the patent system faces new challenges, and efforts to improve the system are ongoing to address these changes. For example, according to the WIPO Technology Trends 2022 report, AI-related patent applications increased by an average of 34.1% annually from 2015 to 2021.

9. Conclusion

Patents are an essential system that has promoted innovation and driven technological development. However, the patent system is not perfect in itself and requires continuous improvement efforts. It is necessary to consider the advantages and disadvantages of the patent system in a balanced manner and continue to develop it in response to the changes in future society.

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