Patent Office Establishes Intellectual Property 'Value Assessment' System and Promotes Market Expansion

[Asia Economy (Daejeon) Reporter Jeong Il-woong] #Wireless communication equipment company A struggled to secure research and development funding due to its credit rating (B+), but managed to ease its cash flow by valuing its patents at 4.15 billion KRW and obtaining a bank loan of 2 billion KRW secured by these patents.

On the other hand, spatial data service company B attempted to acquire another company's patent related to a historical information guidance system, but the patent valuation for the purpose of the transaction was not conducted, resulting in a failure to finalize the contract due to differences in acquisition price with the other company.

The cases of companies A and B illustrate the bright and dark sides arising from the lack of an established intellectual property valuation system in the market.

To address this issue, the Korean Intellectual Property Office (KIPO) announced on the 24th that it will establish an intellectual property valuation system and formulate strategies to expand it throughout the intellectual property and technology markets.

Intellectual property valuation is a measure that estimates the current or future value of intellectual property in terms of amount or grade, and is used in financial fields such as loans and investments secured by intellectual property.

KIPO explained that it can also be utilized in various fields such as intellectual property transactions, patent infringement damage compensation, and analysis of technology leakage damages.

However, currently, intellectual property valuation lacks specialized valuation models for each field, raising concerns about the reliability of evaluations.

Accordingly, KIPO has launched the “Expert Council for the Expansion Strategy of Intellectual Property Valuation” to diagnose problems in the current intellectual property valuation system and devise solutions.

The council held its inauguration ceremony on the 24th at the Korea Intellectual Property Center in Seoul and began its full-scale activities.

Composed of experts from industry, legal circles, and academia, the council will identify key issues arising in valuation processes across fields such as intellectual property transactions, damage compensation, and technology leakage, and set research directions for developing field-specific intellectual property valuation models.

Subsequently, KIPO plans to conduct in-depth research based on the research directions derived by the council to establish specialized valuation models for each field and build a new valuation system that integrates artificial intelligence and expert evaluations.

The core operation of the system KIPO aims to build is that artificial intelligence provides basic evaluation results based on the new valuation models, and experts perform in-depth evaluations on rights and technical aspects to calculate the final valuation amount.

Lee In-sil, Commissioner of KIPO, said, “As intellectual property is widely utilized in financial fields such as investment, the intellectual property valuation market is rapidly growing. KIPO will make this year the inaugural year for establishing a valuation system and strive to expand valuation throughout the intellectual property and technology markets.”

This content was produced with the assistance of AI translation services.