Managing by Patent - Summary -

Managing by Patent

- Summary -

Purpose of the Book 
- The patent war is intensifying throughout the world. However, there are no discussions on the specific methodology of how "invention," the result of creative activities at university/corporation/government research centers, should be utilized in the management of companies.
- This book suggests 4 Steps to Patent Management in specific detail that is designed to use patents to enhance market presence by analyzing the growth process of an advanced patent management company or patent-specialized company (NPE) that can earn high revenues from competitors through patents and by examining the reason why the Apple vs. Samsung lawsuit had to occur.
- If a traditional production-oriented management strategy is used, it is difficult to defend the attacks of patent-specialized companies. Therefore, companies must become an advanced patent management company with a high product margin (production revenue) and royalty fee (creativity revenue). This is the reason why this 4-step patent management theory must be adopted.

Managing by Patent 
- In order to facilitate the rapid growth of a company, one can: i) systematically build creative R&D results (invention); ii) transform them as patents and register them overseas; iii) make patents a powerful weapon to create a powerful market presence. Such patent management is not limited to advanced multinational corporations such as Apple, Samsung and Phillips. Even a small company in a specific technology area/product can also introduce patent management to realize rapid growth and powerful market presence.
- Patent management cannot be achieved at once. It must undergo an: - Introductory stage (reinforced invention ability); - Quantitative Expansion (reinforced patent development capacity) stage; - Qualitative Expansion (reinforce patent competency analysis) stage; and a - Patent Management (reinforce market presence) stage.

- Step 1 - Introduction stage
- During the Introduction stage, a company makes a decision to implement patent management. Having a patent does not produce immediate returns on investment. Therefore, many South Korean companies do not invest in patents. However, advanced patent management companies are making huge investments in patents, which eventually creates market dominance in the end. The most important thing in the Introduction stage is the will and determination of the CEO and therefore it is necessary to create a national policy for patent management education specifically for CEOs.
- During the Introduction stage, human resources must be allocated to patent management. They should help CEOs adopt various training and programs so that a creative culture can spread throughout the company. Also, researchers must stage concerted efforts to strengthen a company's ability to create inventions.

- Step 2 - Quantitative Expansion stage
- The Quantitative Expansion stage is when a company increases the number of patent registrations. Even if the company goes through the Introduction stage, it is difficult to implement a precise patent management strategy like an advanced patent company. It is difficult to know the value of an invention when a patent is registered, so it is necessary to register a variety of inventions in diverse ways.
- Through the Quantitative Expansion stage is to increase the volume of patent registrations, a company needs to: 1) secure patents for the future that could be overlooked; 2) create a compensation program for inventions related to job duties; 3) create a comfortable atmosphere for researchers to apply for patents. Company must keep in mind that the patents that Apple attacked Samsung for were all created during the Quantitative Expansion stage.
- During the Quantitative Expansion stage, human resources should be assigned to specialize in patents. Each researcher should apply for more than one patent application for a year, applying for inventions just for the sake of achieving volume should be screened. The CEO of a company must reinforce the company's ability to create patents by compensating invention of duty and patent registration. In particular, one must have confidence in the cost of increasing patent applications.


- Step 3 - Qualitative Expansion stage
- The Qualitative Expansion stage is where a company implements strategic patent applications through pre-R&D patent analysis to lay the foundation for patent management as well as reduce patent-related risks via a precise analysis of the patents of competing companies. This is where a company goes in full force to reinforce patent competitiveness and, by strengthening overseas patents, prepares seed for future royalties and explores the possibility of growing into an advanced patent management company that collects royalties from various companies around the world based on overseas patent rights.
- During the Qualitative Expansion stage, a company implements strategic and effective patent applications. Although the number of domestic patent applications declines as a result, the overall number of patent applications increases because overseas applications based on the same patent source increases. However, since a company implements patent analysis of competitors during the Qualitative Expansion stage, the risk of a lawsuit decreases and consequently reduces overall cost and risks. As the role of the patent department expands into various areas such as patent analysis and research planning support in addition to patent application and registration, the chief intellectual property rights officer (CIPO) who oversees patent management is selected to strengthen the company's patent analysis competence.

- Step 4 - Patent management stage
- The Patent Management stage is when patents are used to enhance the company's market presence. The Patent Management company comes into possession of a legal and more powerful market presence compared to its competitors. While a company engages in "price competition" based on the competitor's productivity, a patent management company becomes able to practice "technology management." In particular, even if it does not engage in manufacturing directly, it earns consistent revenue from royalties.
- As prepared overseas patent application acquires property rights during the Qualitative Expansion stage, a company comes to possess powerful patent portfolio. As such a portfolio surfaces, the company is able to dominate market. The licensing department recoups the benefit of royalties (a result of creativity) and the company strengthens its market presence.


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A patent is not a cost but an investment for future revenue.
The book contains various secrets to creating a patent management corporation by
discover great inventions, acquiring a strong patent, and producing licensing profits based on it.
< Lee Jeong-hawn, Director of Patent Center(VP), LG Electronics>




BLT Leaders

Yoon Cheol-hyun, Chief Patent Attorney

Seoul National University, Materials Engineering
Passed the 44th Patent Attorney License Test (2007)
Microsoft Certified Professional

Committee Member, Intellectual Property Right Competence Exam (Patent Office)
Samsung Electronics, Samsung SDS, Samsung Display
Principal Researcher, Patent Analysis, Intellectual Property Right Protection Association
Patent analysis related to Samsung smartphones, Energizer, 3M, LCD/OLED optical products
Gasan Patent, YS Chang, Nauri, Inc.
[Korea Electronics and Telecommunications Research Institute (ETRI)] 2013: Lecturer, Patent Coordinator
[Small and Medium Business Company] 2011~ Current: Member of Evaluation Committee of Youth Startup Fund
[Korea Institute of Startup & Entrepreneurial Development] 2013 Start-up League DSC Alpha Dream Mentor Team
[Open Trade] Crowd Funding Platform Open Trade IP Mentor Team
[K-Internet] 2013 Global K-Startup IP Lecturer
[Seoul Design Foundation] Seoul Design Consultant
[Ministry of Knowledge and Economy] Incubating mentor for venture entrepreneur


Eom Jeong-han, Partner Patent Attorney

Seoul National University, Biochemical Engineering
Passed the 43th Patent Attorney License Test (2006)
Microsoft Certified Professional

[Public Procurement Service] Member of Evaluation Committee, Superior Product
[Office of Patent] Member of Evaluation Committee, Invention
[Korea Invention Promotion Association] Expert Consultant
PICO Soft, Inc., Character Korea, Inc., Youmi Patent Company
Lecturer at Seoul National University, Hanyang University, Konkuk University, Kookmin University, Incheon University, Inha University

[Ministry of Trade, Industry and Energy] Executive Member, 2013 Industrial Technology R&BD Strategy Development
[Korea Electronic Trade and Research Institute)] Lecturer, 2013 Patent Coordinator
[Korea Institute of Startup & Entrepreneurship Development] 2013 Startup League Mentor
[Ministry of Science, ICT and Future Planning] Lecturer, Campus CEO Business Jump-up
[Office of Patent] Member of Evaluation Committee, College Patent Invention Contest