SEOUL -- South Korea will set up a 500 billion-won (403 million-U.S. dollar) "invention capital" fund to promote the local intellectual property rights market, a government agency said Wednesday.

The state-run Korean Intellectual Property Office (KIPO) said it will create the fund with capital from both state and private firms, by 2011, which will be used in purchasing and commercializing ideas from local inventors, laboratories and schools.

The fund will also be used to help local businesses fighting against threats from foreign non-practicing entities (NEP) that buy patents solely to demand royalty payments from manufacturers, KIPO added.

KIPO announced its plan at a meeting of the National Competitiveness Council, chaired by President Lee Myung-bak, under which it will start with opening an intellectual property management company, jointly run by the government and private sector.

Planned to be launched in 2011, the management company will engage in facilitating commercialization and production of value-added goods through purchasing ideas, patents, and corporate licenses.

South Korea is currently listed fourth in the world's patent issuance rank, with the ninth-largest intellectual property market, KIPO said.

The country, however, still lacks ability to protect intellectual property rights, with a ranking at 37th place and a trade deficit of 2.9 trillion U.S. dollars in the intellectual property right market, KIPO added.

"If all the plans are carried out, the government hopes to expand the country's intellectual property market to rank fifth in the world from ninth at present, while helping to add 7 trillion won to gross domestic product in 2012," an official at the organization was quoted as saying.
                                                                                                            Source: Xinhua