[New Wave] Let's Open the Era of Intellectual Property Network 2.0

Despite difficulties caused by COVID-19 and a low-growth trend, the global community is undoubtedly in an 'era of innovation and convergence.' The combination of technologies, as well as the fusion of technology and culture, is driving diverse and creative ideas that lead to technological innovation and new social phenomena.

The advancement of communication technology and networks has brought about a revolutionary development in online video service (OTT) platforms like Netflix, enabling real-time enjoyment of content worldwide. Content integrated with new technologies has drawn global attention to K-content in the world market. The export of Hallyu content such as BTS and the recent 'Ojingeo Geim' (Squid Game), as well as K-intellectual property, has increased significantly. Additionally, technology-based intellectual property-intensive industries such as semiconductors, smartphones, and displays are also enjoying a boom.

The impact of intellectual property on our economy is substantial. In 2015, the employment contribution of intellectual property-intensive industries in South Korea was 29.1%, contributing to the creation of about 6 million jobs. The copyright industry, a key pillar of intellectual property rights, accounted for 8.91% of the total domestic gross domestic product (GDP) in 2018 and 7% of employment across all industries. Last year, exports reached $10.9 billion, and the trade balance recorded a surplus of $1.89 billion. Patents, a representative stepping stone of technological innovation, also show that a 1% increase in patents leads to a 0.65% increase in GDP growth rate, and one patent created in manufacturing generates employment for 6.4 people.

However, as the semiconductor and mobile-related industries prosper, the proportion of technology usage fees and royalties paid to countries owning the original technologies increases. Despite the export surplus and boom in the content sector, South Korea's overall intellectual property trade balance recorded a deficit of $1.87 billion last year. The path to becoming a strong intellectual property nation is still long.

Now, before it is too late, we must meet the expectations of industrial sites and markets through networking within the intellectual property field and across all industrial sectors. Although the Basic Intellectual Property Act was enacted and the National Intellectual Property Committee (under the Ministry of Science and ICT) was launched 10 years ago, its effective control tower function is considered weak. Policies in traditional intellectual property fields such as copyright and content (Ministry of Culture, Sports and Tourism), industrial property rights (Korean Intellectual Property Office), as well as new intellectual property fields like new plant varieties and geographical indications (Ministry of Agriculture, Food and Rural Affairs), traditional knowledge and genetic resources (Ministry of Environment), and pharmaceutical approval-patent linkage systems (Ministry of Food and Drug Safety) are not effectively networked. Despite quantitative growth in industry, the lack of policy flexibility and efficiency, and weak responsiveness to ultra-fast technological innovation environments?key conditions for qualitative growth?have been pointed out. Therefore, it is time for in-depth discussions on governance systems to strengthen policy functions and networking from a national strategic perspective.

The United States established the National Intellectual Property Coordination Center in 2000 and enacted the 'Prioritizing Resources and Organization for Intellectual Property Act' in 2008. During President Obama's administration, the White House appointed an Intellectual Property Enforcement Coordinator to strengthen coordination functions. Japan passed six bills for digital transformation, including the 'Basic Act on the Formation of a Digital Society' in May, and established a Digital Agency directly under the Prime Minister to address various social challenges arising in the new IT environment, centered on the Digital Agency. The commonality is that they have efficient intellectual property control towers.

A new environment of convergence is unfolding before us. For the growth and innovation of our industries that can compete globally and for efficient support, not only protection, management, and trading of intellectual property rights but also concepts such as intellectual property finance, intellectual property convergence education, and intellectual property economy and security are necessary. It is time to fully open the era of Intellectual Property Network 2.0.

Byung-Han Yoo, President of the Korea Software Copyright Association