"Immediate Loan for Disputes" Patent Office Supports SMEs and Mid-sized Companies in Intellectual Property Dispute Response

Small and medium-sized enterprises (SMEs) and mid-sized companies enrolled in the Intellectual Property Mutual Aid Program will now be able to immediately receive loans for costs such as hiring patent attorneys and lawyers when involved in intellectual property-related disputes, including patent infringement lawsuits.

The Korean Intellectual Property Office (KIPO) announced on the 9th that it will implement the "Immediate Loan for Dispute Costs" system starting from the 10th of this month.

Provided by the Korean Intellectual Property Office

Previously, even if companies were enrolled in the Intellectual Property Mutual Aid Program, they had to pay premiums for six months before being eligible for loans.

However, with the implementation of the Immediate Loan for Dispute Costs system, companies will be able to receive loans for costs related to intellectual property disputes such as trials and lawsuits immediately after the dispute arises, regardless of their enrollment period.

In particular, KIPO plans to provide broader support to companies facing intellectual property disputes by allowing immediate loans for disputes that occurred within six months prior to enrollment in the Intellectual Property Mutual Aid Program.

However, the items eligible for immediate loans are limited to costs necessary for intellectual property trials and reexaminations, invalidation lawsuits, intellectual property infringement lawsuits, technology theft, and trade secret disputes.

The Intellectual Property Mutual Aid Program is open year-round to SMEs and mid-sized companies regardless of whether they hold industrial property rights.

KIPO has been operating the Intellectual Property Mutual Aid Program in partnership with the Korea Technology Finance Corporation since August 2019. As of August this year, approximately 15,000 companies have enrolled in the program, with total premiums paid amounting to about 180 billion KRW.

The Intellectual Property Mutual Aid Program is a financial product that allows enrolled SMEs and mid-sized companies who pay monthly premiums to borrow up to five times the amount of their paid premiums when they temporarily need funds for intellectual property trials, lawsuits, or domestic and international applications.

For more detailed information about the Intellectual Property Mutual Aid Program, please visit the Korea Technology Finance Corporation or the Intellectual Property Mutual Aid Program website.

Mok Seong-ho, Director of the Industrial Property Policy Bureau at KIPO, said, "With the introduction of the immediate loan system, we hope SMEs and mid-sized companies can reduce financial risks related to intellectual property dispute costs and enhance management stability. KIPO will continue to strive to ensure that the Intellectual Property Mutual Aid Program serves as a reliable intellectual property support pillar for domestic companies."

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