Organic EL Patent, Emerging as Possible Hindra

As large domestic companies such as Samsung SDI, LG Electronics, Kolon, and Hyundai LCD are entering the organic EL display market, patent issues are expected to become a hindrance in the domestic organic EL industry.
In recent 'Organic EL Seminar' held by Electronic Display Industrial Research Association of Korea in Jejudo, Baek Chung-ryeol, the president at Ulvac Korea, said that he heard from Ulvac headquarters that Kodak, a partner company for organic EL equipment, was likely to strengthen its attack on patent targeting Korean panels, elements, and equipment makers. "It is desirable for domestic companies to clearly check patent issues when they do relevant business."

Kodak obtains patents on element and material of low molecular fluorescent organic EL, and also has linear nozzle (line source) technology to be used in organic EL equipment. Low molecular fluorescent organic EL technology is mostly adopted in PM organic EL display that has recently been commercialized and has something to do with long use of product. Therefore, there is no way of not using the technology, according to industrial sources.

The license fee demanded by Kodak to domestic display makers comprises millions of dollars in advanced technology fee and running royalty or 5 to 6% of modules that is paid during product release. Among domestic companies, Samsung SDI is the only one that made license with Kodak on PM organic EL and other companies are recently under negotiation over royalty.

A source at a company that is negotiating with Kodak said that Kodak was not willing to back off from suggested royalty amount as the company was about to going bankrupt in the past due to patent lawsuit regarding Polaroid. "Royalty that amounts 5 to 6% is quite burdensome to display makers."

As opposed to Korean companies, most of Japanese and Taiwanese companies in the organic EL industry, have already removed business hindrance by making license with Kodak. Fortunately, since Kodak does not apply for patent in Korea and China, it would have no problem if Korean companies restrict their business area in Korea and Chine when using the Kodak technology.

A source at a patent team in a large company said that when it comes to organic ELD patents, it is better to look over a target area for doing organic EL business and do negotiation as late as possible depending on business timing. "It is also necessary to benchmark how Taiwanese companies with relatively small capital have made license contract with Kodak, and joint response in the industry can be one solution."

Expanded outsourcing of prior art searches

o By expanding the outsourcing of prior art searches, KIPO plans to shorten the examination period and reduce the examination workload.

- The outsourcing of prior art searches, which began in 1992, has been carried out in earnest since 1997. Outsourcing has expanded because of the rapid increase of patent applications since the second half of the 1990s. Increasing the number of examiner has failed to reduce the heavy examination workload.

- In 2002, the number of outsourced prior art searches was 65,000, representing 32% of examinations. By 2007, KIPO plans to gradually expand the number of outsourced searches to 180,000, which is 70% of the total.

o By increasing the number of examiners and expanding its outsourcing, KIPO expects to shorten the examination period from 22.6months in 2002 to 12months in 2007.

The Seoul Branch Office of KIPO relocated on March 24, 2003

KIPO relocated the Seoul Branch Office from the Poonglim Building, Yeoksam-dong, Kangnam-gu, Seoul, to the KIPS(Korean Intelletual Property Service) Center (the former headquarters of Samsung Heavy Industry, Inc.) on March 24, 2003.

Due to the transfer of KIPO to the Government Complex in Daejeon, the Seoul Branch Office was established in 1998 for the convenience of customers in the Seoul metropolitan area.

The Seoul Branch Office conducts intellectual property affairs related to applications, registrations and trials; it offers domestic and international intellectual property information and issues all certificates for approximately 700 customers a day.

We are doing prior art search for patent application. For example, perforated basket(or bowl), length adjustable bed for kids, electric power act of other countries etc.
And we are doing Patent Map project for medium and small-sized enterprises to help enhancing their competity and productivity increase. We also participating in Patent Map project sponsored by Korea Intellectual Property Organization.

It aimes to introduce technology marketing re BT & IT field, Dry Powder Inhaler and 2 View Imaging system for endoscope.

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