According to the latest statistics, in 2011, the amount of invention patent applications submitted by Chinese to South Korea ranked the fourth in the invention patent applications filed by Chinese to foreign IP offices; meanwhile, the bilateral trade turnover between China and South Korea was $220.63 billion, up 17.1%. In the past three years, bilateral patent applications and trade volume both increased gradually. Till now, China has become the biggest trade partner of South Korea. Experts believed that the growth of Chinese patent applications in South Korea further drove the sound development of trade between China and South Korea.
Patent applications marry up trade growth
“…IPR has become an important part of international trade and paying attention to IPR is the necessary condition for international trade.” Researcher Cai Chunlin from University of International Business and Economics thought that giving prominence to patent applications filed to foreign IP offices not only embodied the improvement of IPR ability of the innovative bodies in China, but support the growth of international trade.
In 2011, China filed 697 pieces of invention patent applications to Korean Intellectual Property Office (KIPO), increasing by 40.5% compared with the previous year. With the growth of the invention patent applications filed by China to South Korea, the trade between China and South Korea also maintained higher growth rate.
According to relevant experts, no matter technology trade or service trade between China and South Korea, most of them involve patents. The increasing proportion of IPR must increase patent applications.
In 2011, China’s direct investment in South Korea rose by 57.2%, 52% higher than the average number. According to statistics, in 2009, China’s direct investment in South Korea was $160 mln, in 2010 the number grew to $410 mln and in 2011, increased to $651 mln. In these three years, the invention patent applications filed by China to South Korea also experienced a fast development.
Patent applications cater for sustainable development
The invention patent applications filed by China to South Korea have changed from those concerned life and food to hi-tech industries such as raw materials, semi-conductor and display technology, which is closely related to the exports and investment of China to South Korea. Years ago, the export and investment of China mainly concerned crude oil, coal, food, clothes and relevant service, while in recent years, the exports and investment obviously increased concerning raw materials, semi-conductor manufacturing equipment and display manufacturing equipment. Only in 2011, the export and investment of China to South Korea on raw materials and semi-conductor manufacturing equipment increased by 121.5% and rose by 39.4% on display manufacturing equipment.
“What IPR reflects is not only technology competitiveness, but trade and market competitive power,” experts said when interviewed. To cope with the rapid increase of patent applications in South Korea, China’s State Intellectual Property Office (SIPO) and KIPO signed an MOU on Patent Prosecution Highway (PPH). Based on the MOU, PPH pilot work was ignited on March 1, 2012, which would provide convenience for China’s enterprises in trade and investment in South Korea.
To boost bilateral trade, the negotiation preparation work for Sino-South Korea Free Trade Zone has started. On March 26, Chinese President Hu Jintao noted when meeting South Korean President Lee Myung-bak at the Nuclear Security Summit that the two countries should quicken the construction of Sino-South Korea Free Trade Zone to ensure the stable and sound development of the economy and bilateral economic and trade cooperation. President Hu Jintao also expressed that China had the confidence to make the bilateral trade turnover reach $300 billion in advance.
This year is the 20th anniversary that China and South Korea established diplomatic relations. On March 22, China, Japan and South Korea had reached a substantial agreement on a copy of investment proposal mainly concerning enterprises’ IPR innovation and protection. On May 13, the fifth conference for leaders from China, Japan and South Korea was held in Beijing, the capital of China, and the conference agreed to start negotiation on building free trade zone among China, Japan and South Korea. Professor Liu Jiangyong from Tsinghua University said the free trade zone covering China and South Korea would be an advanced one including IPR, service and low tariff. IPR factor will be key competitiveness in occupying market and the free trade zone will challenge Chinese enterprises’ IPR capability and level.
According to some experts, with the development of trade partner relationship between China and South Korea and the enlargement of bilateral trade, on the one hand, China’s enterprises will have more chance to compete for market in South Korea, on the other hand, once the Sino-Korea Free Trade Zone was set up, China’s enterprises have to depend on their own technology and product advantages to survive and IPR becomes indispensable factor. Therefore, to keep good trade growth, China’s enterprises need to change their patent applications structure.
（Source: IPR in China）
